Skip to main content

Phablets Gain Market Share at the Expense of Tablets

What happens when the global market for media tablets shows signs of saturation in key regions? The analyst focus should shift toward the progressive software applications for these mobile devices. Meanwhile, industry analysts will continue to address the apparent market volatility, by adjusting their shipment forecasts.

Based on a greater decline in demand than predicted in the first quarter -- and real concerns that vendors will face additional market challenges the rest of the year -- International Data Corporation (IDC) has lowered its 2014 worldwide tablet plus 2-in-1 forecast to 245.4 million units.

That's down from the previous forecast of 260.9 million units. The new forecast represents a 12.1 percent year-over-year growth rate, which is notably lower than the 51.8 percent year-over-year growth of 2013.

"Two major issues are causing the tablet market to slow down. First, consumers are keeping their tablets, especially higher-cost models from major vendors (like Apple), far longer than originally anticipated. And when they do buy a new one they are often passing their existing tablet off to another member of the family," said Tom Mainelli, Program vice president at IDC.

Second, according to Mainelli, the rise of phablets -- smartphones with 5.5-inch and larger screens -- are causing many people to second-guess tablet purchases as the larger screens on these phones are often adequate for tasks once reserved for tablets.


In the past year alone, the phablet share of smartphone shipments has more than doubled -- from 4.3 percent in the first quarter of 2013 to 10.5 percent in the first quarter of this year, representing 30.1 million units shipped.

As large phones clearly impact near-term tablet growth, IDC expects the market to rebound by shifting its focus back toward larger-screened devices. Products with larger screens are expected to play a greater role in the market going forward.

The trend toward larger tablet screens will mark a welcome change for most vendors as the average selling price for these devices will remain roughly 50 percent higher than the average sub-8-inch device.

Microsoft hopes that it can benefit from this shift, as the share for Windows-based devices is forecast to double between now and 2018.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es