Cannibals at the table
Latest TabletTrack study released from research firm YouGov suggests that more than one in twelve UK tablet owners (8 percent) purchased a tablet to replace an existing desktop or laptop computer. About 11 percent of Samsung Galaxy Tab owners and 7 percent of iPad ones fall into this category.
The survey also suggested that 13 percent of UK adults are seriously considering buying a tablet, with over two thirds of these already sure of the brand they might purchase.
Though more than three quarters of tablet owners purchased a tablet in addition to a computer, YouGov has noted a trend of cannibalizing. Of the ones who are looking to buy tablets in the near future, about 16 percent are looking for a laptop substitute, while 9 percent want a tablet PC to substitute their netbooks.
The research firm predicted the launch of newer, cheaper tablets throughout 2011 will further boost this increase. YouGov has identified £250 as the magic price point and clearly demonstrates the importance of pricing in order to achieve widespread distribution.
Pointing out the number of tablet launches so far, Russell Feldman, associate director at YouGov, said: "Our analysis clearly demonstrates that if the pricing is right and the device is marketed at the correct audience, then there is significant latent demand."
The research firm has arrived at the optimal price based on a price modelling analysis among 2,000 nationally representative adults who do not own a tablet. It says a £150 to £200 price range will lure even those who are currently uninterested in a tablet.
The methodology used for this analysis is quite similar to the one that predicted that e-reader sales will take off at the £100 price point two years back.
In fact, Gartner earlier noted that PC sales for early 2011 were weak in many key regions due to the intensifying competition in consumer spending and cannibalization of the market by media tablets, consoles and smartphones.