Tablet sales in Australia dropped 16 per cent during the first half of 2015 with 1.5 million units sold according to a new Telsyte study.
The decline was due to a drop in low end device sales and the emergence of premium 2-in-1 devices.
Tablet sales in Australia dropped by 20 per cent in 2014 due to market saturation.
The Australian Media Tablet Market Study 2015-2019, released by the analyst firm today, found that as of June 2015, 13.7 million Australians had access to a tablet.
New user growth is expected to mainly come from those under 16 years of age and those above 65, given market saturation in most other age groups.
Apple iOS devices retained market leadership with 48 per cent share followed by Android tablets which had a 38 per cent share.
According to Telsyte, Windows-based devices now make up 14 per cent of the market.
Across vendors, the analyst firm believes Microsoft is now the third largest player after Apple and Samsung in the Australian tablet market.
According to Telsyte managing director Foad Fadaghi, the tablet market has been impacted by larger screen smartphones and buyers seeking greater functionality from their next tablet purchase.
However, 2 in 1 tablet/notebook devices are tipped to grow from 500,000 this year to 1.5 million in 2017.
“Windows-based tablets and 2-in-1s will benefit from an upgrade cycle that started with the arrival of Windows 10 and is expected to continue into 2017,” Fadaghi said.
He added that the stage is set for “a battle” between professional devices suitable for workplace applications such as the Surface Pro 4 and iPad Pro. The arrival of these devices is expected to help to boost sales in the second half of 2015 to 1.8 million units