UAE demand for tablets expected to rise

Even though Apple's iPads will rule the roost this year in the UAE, demand will be slightly slower than the market growth, according to an industry expert. "The demand for the new iPad will not be completely incremental to the demand of the iPad 2," Fouad Rafiq Charakla, research manager at IDC Middle East, Africa and Turkey, told Gulf News. "The iPad 2 will be cannibalised by the new iPad to a very large extent. "The demand for iPads will continue to grow as expected, but slightly slower than the market growth, especially with the launch of Windows 8 expected in the fourth quarter." The Apple iOS was the top operating system in 2011, followed by Android. This trend is expected to continue this year. Charakla said that while the new iPad has some hardware improvements, they are not major because Apple realises their hardware is already much better than its competitors. Therefore a significant focus went into introducing new and improved applications, he said. "The UAE market is still under-penetrated and the prices are rapidly declining," Charakla said. "More and more people are realising the benefits of media tablets, especially the portability and good battery life of the device. "The market also continues to see new entrants. Moreover, new applications also keep launching, thereby enhancing the user experience." Demand for tablets in the UAE is expected to grow by more than 63 per cent this year to 406,340 units compared to 248,469 units in 2011. The average price of a tablet was $697 (Dh2,560) last year, and it is expected to drop to $600, while the market value is expected to increase from $173 million to $245 million. "Businesses across the region are refocusing their mobile strategies and turning to tablets, said Ashraf Fawakherji, general manager of telecommunications for Samsung Gulf Electronics. "Most tablets today are slick, portable, equipped with a bright touch screen display and priced lower than an average desktop. Charakla said the 9.7-inch screen size was the most popular. According to Stephanie Ethier, senior analyst at NPD In-Stat, screen size is a "key differentiator" for tablet makers trying to compete with Apple and also the leading indicator of how the device is used. Charakla said tablets in the 9.7- to 11-inch category will dominate 65 per cent of worldwide shipments by 2016. According to IDC, Amazon's Kindle Fire is expected to gain market share because of its low price. But Charakla doesn't see tablets replacing PCs outright. "A few people may consider media tablets as replacements for their PCs, so later this year when there is a new Microsoft operating system, we expect Windows 8 to eat into Android and iOS space," he said. "Taking this into consideration, Apple's market share is also expected to fall." Windows 8 has already received some rave reviews. It is expected to include Office 15 with a touch interface. If that happens, Charakla said it will have a big impact on the market with several consumers perhaps migrating to tablets completely if all their needs are met. If Microsoft is successful, then Windows 8 may gain access into the corporate environment. Businesses are already buying tablets and are expected to fuel further demand this year. As a tool for business, Fawakherji said mobile devices currently serve as a companion, providing a powerful computing platform for workers on the go to access data locally and from a cloud system. But the price of 3G connectivity is high in the UAE, he said, and until it drops and 4G becomes reasonable, the demand will not pick up. "Telco tie ups with tablet vendors are not strong in UAE compared to some other countries in the Gulf region," Fawakherji said. From gulfnews