Price deflation will become more aggressive as the market becomes increasingly fragmented and semiconductor and electronic component prices decline further
Los Angeles, CA (PRWEB) November 15, 2014
Tablet computers have a buyer power score of 4.0 out of 5. This score reflects positive negotiation conditions for buyers resulting from suppliers' lower input costs and rising competition within the market. Falling semiconductor and electronic component prices, as well as lower wage costs, have lowered production costs within the tablet market over the past three years, thereby alleviating the pressure on suppliers to charge higher prices to maintain profit margins. Meanwhile, high competition between suppliers has compelled them to lower their prices to attract and retain business. “Consequently, buyers are experiencing a favorable environment in which tablet prices are falling aggressively and suppliers have a strong incentive to negotiate,” according to IBISWorld business research analyst, Daniel Krohn.
Although buyer leverage is projected to expand overall in the next three years, a variety of factors will limit buyer power growth. In particular, increases in the number of adults between 20 to 64 years of age, consumer spending and the percentage of services conducted online are all expected to drive up demand for tablet computers. Additionally, buyers' growing familiarity with tablets is expected to further boost demand over the next three years. Rising demand will alleviate competition somewhat and limit buyer power growth in the coming years.
The type of supplier that buyers select can affect their buyer power. “Buyers can usually opt to purchase tablets from either manufacturers or wholesalers, regardless of their order volume,” says Krohn. While low profit margins prevent either supplier type from providing substantial volume discounts, manufacturers typically charge lower prices. However, wholesalers offer a broader range of products and will generally provide more opportunities for buyers to obtain bundling discounts and spread shipping costs over multiple product purchases. Consequently, buyers requiring only tablet computers will often be afforded more buyer power when purchasing from manufacturers, while those requiring multiple products will benefit more from procuring through an electronic wholesaler. Major vendors include Apple Inc., Hewlett-Packard Development Company LP and Microsoft Corporation. For more information, visit IBISWorld’s Tablet Computers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of tablet computers. Tablet computers, or tablets, are portable, personal computers contained on a single surface, requiring the use of a finger or stylus to operate rather than a keyboard or mouse. Often, tablets are equipped with features such as a camera, microphone, accelerometer and a touch screen interface. This report excludes personal desktop computers, laptops and smartphones.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.