Skip to main content

How Smartphone Vendors Disrupted the Tablet Market

Seasonality combined with disinterested customers led to an annual decline of 14.7 percent in worldwide tablet shipments during the first quarter of 2016 (1Q16). Global shipments of tablets reached 39.6 million, according to the latest market study by International Data Corporation (IDC).

Slate tablets continued their decline while still accounting for 87.6 percent of all shipments. More importantly, the slate tablet segment has become synonymous with prices at the low-end of the market.

While this may bode well for vendors like Amazon that rely on hardware sales to increase their overall ecosystem size, it has not helped other leading vendors who rely solely on greater margins for hardware sales.

Ongoing Gains for Detachable Tablets

Meanwhile, detachables experienced triple-digit year-over-year growth on shipments of more than 4.9 million units, an all-time high in the first quarter of a calendar year. But that performance won't result in a celebration. Many challenges remain in this nascent market.

"Microsoft arguably created the market for detachable tablets with the launch of their Surface line of products," said Jitesh Ubrani, senior research analyst at IDC.

With the PC industry in decline, the detachable market stands to benefit as consumers and enterprises seek to replace their aging PCs with detachables. IDC analysts believe that Apple's recent foray into this segment has garnered them a lead in the short term.

That being said, continued long-term success for Apple may prove to be difficult, as a higher entry price point can turn-off some consumers. Meanwhile, iOS has yet to prove its enterprise-readiness, which may enable Microsoft and their hardware partners to reestablish themselves. It's hard to predict what happens next.

Market Development in the Middle

Likely due to eroding margins in regular slates, 1Q16 also saw the introduction of detachable tablets from traditional mobile vendors -- such as Samsung and Huawei. According to the ABI assessment, the mid-range pricing for these new devices will make them a difficult sell as consumers seeking performance will likely go for a Surface-like device, and the budget conscious will seek options from other low-price vendors.

The introduction of detachables from traditional smartphone vendors is only just beginning, and IDC is concerned that this will pose a real threat to traditional PC manufacturers. Their understanding of the mobile ecosystem and the volume achieved on their smartphone product lines will allow them to aggressively compete for this new computing segment.

It is likely that those savvy smartphone vendors will utilize the detachable segment to create new mobile computing end-user experiences, if customers are using their detachables in combination with their smartphone apps.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno