An analyst at investment bank Rodman & Renshaw has claimed that tablet devices may not be able to live up to the hype as consumers cut down on spending.
According to Bloomberg, analyst Ashok Kumar said that companies like Apple and Samsung may have trouble reaching their sales targets thanks to low consumer spending.
Kumar said that Apple's iPad, which sold 4.19 million units during the last quarter, might not be able to reach the analyst estimate of 6 million units in this quarter. He instead predicted that the company will manage to sell around 5 million units.
Another company said to be hit by poor sales is Samsung, which has reduced the production level of Galaxy Tab by almost 50 per cent owing to below estimate sales, the analyst said.
“It’s a nice-to-have product, for those of us who don’t have a budget, but is it a must-have product? I don’t think so,” said Kumar.