February 12, 2016.
The tablet entered the Vietnam market in 2011. In 2015, approximately 1.5 million tablets were sold. This represents a 17 percent increase and a record fourth straight year of growth.
However, even with the increase in the number of tablets sold, 2015 is the first time the Vietnamese media tablets segment dropped in total market value. More specifically, the tablet segment generated US$324.5 million in sales in 2015, which is a 13 percent decline as compared to 2014.
One reason for this disconnect is because the rate of growth has slowed. Even with double digit sales growth in 2015, this is a slowdown compared to the triple digit growth experienced in the past three years. The segment is becoming more and more saturated.
Another reason is the drop in price combined with a flood of entry of new tablet makers. Compared to 2014, 2015 price plunged 25 percent. That price drop is part of a longer term price decline. The current average price is $240. When the tablet first debuted, the average price was $675.
The rate of growth of new tablet competitors rivals the fall in price. In the first year of launch, there were 10 tablet brands. There are currently about 63 brands and 396 models of media tablets available in the market.
There are two additional trends worth noting. First, the market share of the low-end tier of sub-$200 tablets surged to 55 percent of total market share which represents an increase of 16 percent. Secondly, the Android operating system continues to dominate the Vietnamese market. In 2015, 82 percent of tablets purchased were Android based, up from 73 percent in 2014.