CHART: Another nail in the coffin for tablet devices

Photo: Shutterstock

Tablets are losing ground in one of their core uses – watching videos.

Online video consumption is exploding globally, as more streaming services launch, and networks and sports leagues put more content online. According to data from Adobe Analytics, online video viewing has seen 102% year-on-year growth.

But this growth hasn’t been even. Mobile devices have increased their share of video watching, now accounting for 31%, however smartphones enjoyed a massive increase, while tablets actually saw a decline.

In the same quarter last year, tablets and smartphones both accounted for about 13.5% of online video viewing each. The share for smartphones has since grown by 33%, with tablets losing ground to the tune of 7%.

The decline of tablets comes as smartphones are getting bigger – doubling screen size in recent years.

But manufacturers don’t seem to mind smartphones cannibalising the market for tablets, as phones have a better profit margin. Estimates put the profit margin for an iPhone at 69% for example, while the margin for the iPad is 50%.

Recent numbers from Statista show tablet shipments are down 9% in the latest quarter, year on year.

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.


Tagged In