Goldman Sachs: AI upgrades drive sharp increase in education-tablet ASP as Doubao AIXue DAU surges
Goldman Sachs’ July 2026 tracking report on China’s education sector says TAL’s learning-tablet gross merchandise value rose 34% year over year in July.
Goldman Sachs’ July 2026 tracking report on China’s education sector says TAL’s learning-tablet gross merchandise value rose 34% year over year in July. Average selling price climbed to 5,400 yuan, up 57% year over year and 34% from the previous month, mainly because TAL launched its T6 series on June 30, with prices ranging from 6,900 yuan to 12,000 yuan.
Combined GMV for the eight leading mainstream brands increased 12% year over year. Doubao AIXue, ByteDance’s education app, saw daily active users rise 154% year over year and retained its position as China’s sixth-largest AI-native application.
The number of licenses for non-academic-subject tutoring declined 0.3% from the previous month. The year-over-year decline in overseas Chinese-student visa issuance narrowed to 4%, compared with a 19% decline in 2025.
East Buy’s GMV rose 75% year over year, while GMV on its new platform increased 353%.
Goldman Sachs maintained its Buy ratings on New Oriental and TAL, and its Sell ratings on East Buy and Offcn Education. The bank said education-tablet AI upgrades are sharply lifting ASP, while the user base of AI education applications continues to expand, indicating an AI-driven repricing of the sector.
The report describes the developments as positive for TAL because the T6 series is driving strong ASP and GMV growth, and positive for New Oriental. It considers the developments negative for East Buy and Offcn Education. Goldman Sachs said the market has not yet fully priced the AI transformation of education stocks and that TAL’s higher tablet ASP validates the pricing premium that content combined with AI can command.
The catalysts identified in the report are: subsequent monthly sales and GMV data for TAL’s T6 series; whether Doubao AIXue’s DAU growth continues; and whether the decline in overseas-study visa issuance can narrow further and eventually turn positive.
Combined GMV for the eight leading mainstream brands increased 12% year over year. Doubao AIXue, ByteDance’s education app, saw daily active users rise 154% year over year and retained its position as China’s sixth-largest AI-native application.
The number of licenses for non-academic-subject tutoring declined 0.3% from the previous month. The year-over-year decline in overseas Chinese-student visa issuance narrowed to 4%, compared with a 19% decline in 2025.
East Buy’s GMV rose 75% year over year, while GMV on its new platform increased 353%.
Goldman Sachs maintained its Buy ratings on New Oriental and TAL, and its Sell ratings on East Buy and Offcn Education. The bank said education-tablet AI upgrades are sharply lifting ASP, while the user base of AI education applications continues to expand, indicating an AI-driven repricing of the sector.
The report describes the developments as positive for TAL because the T6 series is driving strong ASP and GMV growth, and positive for New Oriental. It considers the developments negative for East Buy and Offcn Education. Goldman Sachs said the market has not yet fully priced the AI transformation of education stocks and that TAL’s higher tablet ASP validates the pricing premium that content combined with AI can command.
The catalysts identified in the report are: subsequent monthly sales and GMV data for TAL’s T6 series; whether Doubao AIXue’s DAU growth continues; and whether the decline in overseas-study visa issuance can narrow further and eventually turn positive.