The CEBR has just pre released (to some) certain extracts from their Digital Retail Price Index for Quarter 3 (full details to follow!) which shows the highest price reductions over a quarter since 2007. The Year-on-Year figure is down by 1.2% compared to retailers who they reckon have an equivalent increase of 0.8%. This does tie in with the Office for National Statistics (ONS) retail sales figures for October where they noted that in the non store retailing sector “The prices of goods sold were estimated to have decreased by 1.1 per cent in the year to October 2012”. This is the sector dominated by online sales which represent over 60% of the total sales.
On a longer term view the CEBR reckon that over the last 5 years high street prices (+7%) have risen at more than double the rate of online prices (+3%).
We thought we should get a little ahead of the curve and have a look at tablet price deflation since quarter 4 of 2011.
Our headline figure for all tablets for all major tablet vendors shows an average price decrease of 37.6% and even allowing for the 12% average size reduction, sort of, implies an overall price per inch(!) reduction of just over 25%. On a like for like basis on 9 inch + tablets the reduction is 20%.
The other striking comparison with last year of course is the increased choice available in product and vendor terms. Even if we, rather unfairly drop Barnes & Noble on the grounds of majorality(!) there are 3 new vendors and now 2 distinctly different sized tablets. Less subtly last year it was almost a case of a big iPad or nothing whereas this year we are spoilt for choice.
Now looking at one of the most critical areas of the market at this time of the year – Tots Tablets – the results are much less promising! LeapPad2 £89.99 (£79.99) and Inno tab 2 £84.99 (£79.99) list prices are up by some 9% but as we mentioned before you can (unlike grown up tablets) buy these at significantly discounted prices (around £70 or even less) fairly widely at the likes of Tesco & Amazon. Last year of course the LeapPad was in short supply and premium pricing was widely reported.
On the general availability/our receipt of, the CEBR’s report we shall return to this subject.
Partially sourced from The Daily Mail