Skip to main content

Media Tablet Growth Moves to the Emerging Markets

While few people may remember the anticlimax that followed the huge marketing campaign for the launch of Intel-based high-cost Ultrabook PCs, industry analysts can't help but reflect upon that event as they review the impact of low-cost notebooks on the personal computing market today.

Following a second consecutive quarter of softer than expected demand, International Data Corporation (IDC) has once again lowered its worldwide media tablet plus 2-in-1 forecast for 2014 to 233.1 million units.

Based upon their latest market study, they now forecast a 6.5 percent year-over-year growth rate -- which is well below the 12.1 percent growth rate previously forecast.

"When we look at the global picture, it would be easy to say that the tablet market is slowing down," said Jean Philippe Bouchard, research director at IDC. "But, when we start digging into the regional dynamics, we realize that there is still a good appetite for this product category."

While mature markets like North America and Western Europe will combine for flat unit growth in 2014, the remaining regional markets will generate 12 percent unit growth over the same period.


IDC anticipates that price pressure on media tablets with smaller screen sizes (less than 8 inches) and evolving tablet usage in emerging markets will fuel that unit growth.

While average selling prices (ASPs) are expected to stabilize at $373 in mature markets in 2014 due to the shift to larger screens and cellular-enabled tablets, ASPs in the rest of the world will decrease to $302, representing a price annual decline of 10 percent.

As an illustration of evolving tablet usage, shipments of tablets featuring a built-in option of voice calling over cellular networks in the Asia-Pacific (excluding Japan)(APeJ) region reached 25 percent this quarter, representing annual growth of 60 percent.

This trend suggests that end users in this region are looking for a single device that can meet their needs in terms of voice communication and media consumption, and for some that single device is a tablet and not a smartphone.

Driven primarily by small devices, IDC expects the rest of the world to account for the majority of shipments in the years to come. But in terms of dollars spent, medium- to large-sized devices in North America and Western Europe will still produce significant revenues.

This insightful market development scenario will likely become a case study at forward-looking business schools. The lesson learned is that vendors who ignore significant shifts in the marketplace demand do so at their own peril.

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

Precision Medicine Spend to Reach $132.3 Billion

Precision Medicine uses molecular info to extract the optimum medical method from diagnostic protocols, by merging the impact of environmental and genetic factors. Data access is essential, with genetic metabolic and clinical data used to build a fuller picture of a patient's biology. Moreover, the primary aim of precision medicine is to design and optimize a pathway for diagnosis, therapeutic intervention, and prognosis, using large biological datasets. Personalized, evidence-based medicine uses stored health data, which includes patient diagnosis, laboratory work, insurance claims, and demographic information. The results enable healthcare providers to predict and prevent some illnesses. Precision Medicine Market Development According to the latest worldwide market study by Juniper Research, the total investment in precision medicine will reach $132.3 billion globally by 2027 -- that's increasing from only $35.7 billion in 2022. The significant market growth of 270 percent is