Tablet Report: Windows Fast Becoming a Premium OS

While Apple continues to dominate the tablet market in every way, shape, and form, a new report by Strategy Analytics predicts that Windows tablet shipments will increase 120 percent by 2019 and hit 49 million units shipped. The major reason for the bump in shipments, the firm said, is the fact that the Windows OS is finally hitting its stride.

"As the enterprise market becomes increasingly open to the wide scale deployment of Tablet platforms, Microsoft has a key advantage in that its operating systems are found on the vast majority of PC and servers within the enterprise, potentially providing a smoother integration of Tablets using the Windows OS into the enterprise," Tablet & Touchscreen Strategies Research Director Peter King said in a statement. "Most, if not all, major vendors will have high to premium tier Windows Tablet offerings by the end of 2016 to address prosumers and enterprise currently served by Microsoft's Surface Pro line."

Here are some of the key findings from the Strategy Analytics report:

Android and iOS competitors will not stand still as Windows gains in popularity. Black Friday deals are knocking off at least $100 from iPads, Samsung Galaxy Tabs, and LG G Pads, among many other deals around the industry. Furthermore, Apple has strengthened its position among enterprise and prosumer users with the iPad Pro release this month, opening the Tablet market to even greater penetration of higher-tier prosumers, creatives/artists, and enterprise users.

Windows Tablets will have a more balanced approach than Android's mass market, low cost appeal, but will nevertheless produce many millions of sub-$150 wholesale ASP Tablets, contributing to growing market share.

Going forward, the success of 2-in-1 Tablets like the Asus T100, Acer Switch, and the Lenovo Miix 700 and professional grade Slate Tablets like the iPad Pro and Surface Pro 4 will introduce more stability for overall ASPs, and providing a path for many Tablet vendors to reap higher profit margins. Premium price tier Tablets will play an important role in the market, particularly in the enterprise market and as PC replacements in general.

"Windows Tablet market share has dwindled in the mid-single digit range for the last few years but Windows devices now run the gamut from 2-in-1 Tablets from E-Fun in the US starting at $139 retail, to Microsoft's Surface Book starting at $1499 retail," added Eric Smith, senior analyst at Tablet & Touchscreen Strategies. "Power, graphics, and functionality aside, Windows 10 provides a stable base from which the ecosystem can grow and we are entering a world where Windows Tablets take significant market share from Android Tablets on the low end and compete head-to-head with iPad in the high and premium segments."

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