3G tablet sales plummet as consumers choose Wi-Fi only models

May 22, 2014 - PRLog -- London - Unit sales of 3G tablets in the first quarter of 2014 across Western Europe have collapsed compared to the same period a year ago, despite a fall in the Western European 3G tablet average sale price over this period from €271 to €181, according to the latest figures from IT market watcher CONTEXT.

CONTEXT measured channel sales of 3G, 4G and Wi-Fi only tablets in 18 countries across the region, taking in distributor sales to corporate resellers, retailers, small and medium resellers and phone shops.

The IT market watcher found that distributor sales of 3G tablets almost halved in the first quarter of 2014 compared to the same period a year ago. The UK saw 3G & 4G enabled tablet sales in Q1 fall by -34% compared to a year ago.

“It’s clear that widespread usage of wifi in home environments and the increased availability of free wifi hot spots, have made an impact on consumer choice,” commented Marie- Christine Pygott, senior analyst at CONTEXT. “When confronted with paying the premium for a 3G or 4G model, which for some vendors can be an eye-watering 25% premium, users are just saying it’s not worth it.”

CONTEXT also found that Europe-wide sales of 4G tablets have made a modest 10% increase over the past 12 months surpassing 3G sales for Q1 2014.

The UK, long considered Europe’s early tech adopter and barometer for other countries, recorded one of the biggest declines in unit sales of 3G equipped tablets in Q1 2014 of 82%. By contrast, UK sales of Wi-Fi only devices grew by +36% over the same period.

In other European countries, there were also large declines in unit sales for 3G tablets in Germany (-58%), Spain (-49%) and France (-72%). However, some countries did record sales growth over the period, including Italy (+102%) and Sweden (+45%).

“Wi-Fi only tablets have been the dominating category across distribution for more than a year ,” commented Pygott, “ and have since steadily outgrown sales of  mobile networked alternatives. “ CONTEXT notes that the average European selling price of Wi-Fi only tablets dropped slightly, from €251 at the beginning of 2013 to €230 in Q1 2014, with little change over the past three quarters.

In Q1 2013, Wi-Fi tablet sales accounted for 59% of all slates, with 3G taking 27% and 4G 14%. However, by the first quarter of 2014, Wi-Fi devices made up 73% of unit sales with 3G sinking to 12% and 4G little changed at 15%.

About CONTEXT
Headquartered in London with over 150 staff in 15 countries, CONTEXT specialises in tracking technology sales and pricing across the globe. Supported by the largest Distribution Channel Sales Database in the world, CONTEXT tracks Channel sales in most countries across EMEA where we are official data partners with all members of the Global Technology Distribution Council (GTDC). CONTEXT reports and services enable our customers to assess their business operations in the light of actual sell out figures, and make business critical decisions based on hard data. Follow us on Twitter: @contextworld.com or visit our website: www.contextworld.com

Media contacts
Funda Cizgenakad
Funda@contextworld.com
Tel: +44 7876 616 246