Tablet market reaches maturity in Brazil

Sales decline has been less severe in comparison to previous years and the trend is set to continue, says IDC.

The Brazilian tablet market continues to decline - but the decline has been less severe than in previous years, according to IDC.

According to the IDC Brazil Tablets Tracker, the market has seen a 4,8 percent sales drop last year in relation to 2016, with a total of 3,79 million devices sold in 2017.

Despite the decline, the performance of the local tablet seems to have stabilized in recent years: in 2015, tablet sales have seen a 39 percent drop in Brazil and a 32 percent reduction in 2016.

In terms of revenue, there was a decrease of 9 percent, with sales of 1.88 billion reais ($566 million) in 2017. The average ticket fell from 513 reais ($154) in 2016 to 497 reais ($149) in 2017.

After a significant drop in sales over a two year period, many brands have departed from the Brazilian market and there has been a market consolidation with vendors developing aggressive strategies ever since, according to IDC.

With only a small decline in sales in 2017, the analyst firm believes the segment has reached a maturity point in Brazil.

"Today we see a few brands working in well-defined market niches, with dedicated teams and a focus on quality and more attractive prices," says IDC Brazil analyst Wellington La Falce.

According to IDC, Brazilian consumers did not abandon tablets entirely - and even though the entry-level devices priced at under 500 reais ($150), still represented 72 percent of the market in 2017, equipment priced between 500 and 1000 reais ($150-$300) has seen an upsurge in sales, with 20 percent of the units sold.

For 2018, IDC Brasil still forecasts a drop in the tablet market, but the year should be characterized by stabilization and a supply and demand balance.

This year's forecast is that some 3.58 million tablets will be sold, down 5.6 percent on 2017.

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