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Brazil's tablet sales stumble in Q3 with first q-o-q fall, but market remains heated - IDC

Bnamericas Published: Tuesday, December 03, 2013

Tablet sales in Brazil continued to show strong annual growth in the third quarter this year, rising 134% over the same period in 2012, according to a study released by IDC Brasil.

Nevertheless, the 1.8mn tablets sold in the Jul-Sep period were 2% fewer than in Q2. This is the first time IDC has reported a quarter-on-quarter decrease in tablet sales in Brazil.

The average price decreased by 2% compared to last quarter, to 610 reais (US$265). Compared to the same period in 2012, the decline was greater, at 28%.

"In the second quarter of this year, there was a very large sales volume and now we see that sales have stabilized. This may be due to a possible seasonality in the sector, with dates like Mother's Day boosting volume, as is seen in the mobile phone market," said IDC research manager Bruno Freitas.

Another IDC analyst, Pedro Hagge, agreed that it is too early to evaluate whether the results represent a trend or are just a localized issue.

According to Hagge, other factors that impacted the disappointing quarterly results were that industry channels had a large stock of tablets in Q3, after being heavily supplied in the previous quarter. Also, Brazil's ministry of education (MEC) made a purchase of 600,000 devices, which was recorded in Q2.

95% of the tablets sold in Q3 run Android and 63% cost less than 500 reais, according to IDC. Tablets priced between 500 reais and 1,000 reais accounted for 22% of sales, compared to 12% in the same period last year.

Meanwhile, products above 1,000 reais continue to lose ground. They accounted for 15% of sales, against 40% in same period last year. 88% of sales were attributed to the domestic segment.

IDC analysts expect 2.6mn tablets to be sold in Brazil in Q4, for the largest volume of sales in the year, fueled by the Black Friday and Cyber Monday.

For 2013 as a whole, the consultancy estimates that some 7.9mn tablets will be sold, up 142% y-o-y, and over 10mn in 2014.

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