Tablets Under $400 Will Represent 60 Per Cent of The Market In Five Years

The tablet market is expected to shift from the current leader, Apple, to the modest models that appeal to the budget conscious customers.

According to the latest ABI Research report, the low cost tablets, with price tags under $400, will gain 60 per cent of the global tablet market by 2016. In the short term, Apple has nothing to fear, particularly after the third generation iPad broke all the sales records.

The company announced that the new iPad sold 3 million units in the launch weekend and the international roll out isn't finished yet. Between the medium to long term phase, however, the low budget tablets might turn the tables in their favour.

Amazon's Kindle Fire already has an undeniable appeal to a large number of customers and the retailer is planning an even better low cost tablet. Google is also rumoured to release a Nexus Tab at a very convenient price with fairly impressive features.

With eReaders leading the assault, low priced tablets will be particularly successful in the emerging markets.

"The majority of new entrant media tablet models have been in the sub-$400 segment that focuses on growth markets like India and China," believes Jeff Orr, ABI Research group director.

source: ABI Research