JB Hi-Fi Says People Aren't Buying Tablets

People aren't buying tablets as much as they used to. That's the news from JB Hi-Fi's annual financial results, which say a recent slump in sales figures for the big-box electronic retailer are largely attributable to a drop in the number of iPads, Android tablets and Windows tabs sold to Aussies.

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The retailer's overall hardware sales rose 8.6 per cent, and same-store sales figures were up 4.9 per cent, but tablets made up a significantly smaller proportion of those numbers than expected, especially in the month of July. According to the company's full-year financial results presentation on the ASX, "comparable sales in 2HY14 were impacted primarily by the market-wide decline in the tablet category in Q4 and weaker consumer sentiment in May." In July total sales growth was down by 3.2 per cent and comparable sales by 5.5 per cent, numbers JB says were "impacted by market-wide declines in tablet sales."

People are apparently not buying as many tablets, but are increasingly moving back to purchasing laptops, according to the CEO of Best Buy in the US. If the same is true in Australia there could be many reasons behind the slump, including the long period of time since the launch of Apple's most recent iPad Air and Mini, and the high price of high-end Android tablets like the Samsung Galaxy Tab S.

JB says "a good pipeline of new products" is expected for the current financial year, and is forecasting strong growth in sales. It's also touting its new website and JB Hi-Fi Now as potential drivers in revenue. [ASX]