Below is a link to a recent video from Motley Fool where developer Chris Bledsoe and senior technology analyst Eric Bleeker talk about the future of tablets and ask the question, can tablets pass the pc in sales?
The numbers at the core of this discussion comes from a recent forecast by NPD that predicts by 2017, 383 million tablets will be sold. However, from an investor’s standpoint, the problem will be that the majority of this growth will come from emerging markets where tablets are sold cheap. Not much of a profit margin from cheap tablets.
So the concept that tablets will pass the pc in sales is quite possible when looking at the shear volume of tablets sold worldwide. But from a profit standpoint, if the majority of the tablet sales are coming from places like India and the $35 Indian tablet, then investors will not have much of an incentive to buy into the tablet space.
What do you think?