Digital Lifescapes

Continued demand and strong growth expectations for the fourth quarter has led International Data Corporation (IDC) to increase its forecast for the worldwide media tablet market to 117.1 million units -- that's up from its previous forecast of 107.4 million units for the year. In their latest tablet forecast update they also revised upward the 2013 forecast number from 142.8 million units to 165.9 million units. And by 2016 they estimate that worldwide shipments should reach 261.4 million units. Clearly, media tablet adoption will be the trend to watch, as it continues to influence the way that people consume new forms of digital media. "Despite ongoing economic concerns in most regions of the world, consumers continue to buy tablets in record numbers and we expect particularly strong demand in the fourth quarter," said Tom Mainelli, research director at IDC . Apple leads the market with its iPad, and IDC expects its dominance to continue in the second half of th...

Media tablet adoption is already having an effect on other mobile reading devices. Eleven million eReaders are projected to be shipped globally in 2012. That's down from a peak volume of 15 million devices in 2011. Moreover, the growing popularity of media tablets -- along with declining U.S. baby boomer population and lack of organized digital bookstores outside of the America and Western Europe -- will reduce the eReader opportunity over the next five years. “Regardless of the tremendous historical eReader success, the market tides have already begun to turn,” says Joshua Flood, senior mobile devices analyst at ABI Research . Despite the average tablet selling for more than $465 as a result of Apple’s dominant market position, tablets are expected to outsell eReaders by a factor of nine to one this year. Nevertheless, the eReader market will not be totally cannibalized by media tablets. We believe there will always be a niche market for the dedicated reading device for v...

The anticipation of growing enterprise demand for media tablets in the second half of 2012 has resulted in International Data Corporation ( IDC ) increasing its forecast for the worldwide market to 107.4 million units -- that's up from its previous forecast of 106.1 million units. In the their latest market assessment, IDC also revised upward its 2013 media tablet forecast -- from 137.4 million units to 142.8 million units. Moreover, by 2016 worldwide shipments of media tablets are expected to reach 222.1 million units. "Demand for media tablets remains robust, and we see an increasing interest in the category from the commercial side," said Tom Mainelli, research director, Mobile Connected Devices at IDC. IDC expects pending new products from major players, increasingly affordable mainstream media tablets, and Microsoft advertising Windows 8 to drive increased interest in the category through the end of the year. In addition to increasing the unit totals for 2012...

According to the latest market study by International Data Corporation ( IDC ), the market for ereaders in the EMEA region more than doubled in 2011 compared to the previous year, reaching total shipments of nearly 4.8 million units. There's growing mainstream adoption of these devices, which is creating the potential for incremental digital multimedia revenue. Although EMEA still accounts for just over 17 percent of the worldwide market, IDC forecasts sales in this region to exceed 24 million units by 2016, generating a 37 percent compound annual growth rate (CAGR) over the forecast period. The fall in prices greatly contributed to the sales momentum in 2011. The average price for ereaders continued to slide as Amazon aggressively brought the price of its WiFi Kindle device down to €99 in eurozone countries. In 2011, the company experienced strong acceleration in sales thanks to the the rapid uptake of Amazon Kindle devices in Germany, France, Italy, and Spain. In these coun...

The evolving media tablet product segment has become a dynamic landscape since its inception about three years ago. In fact, there are currently more than 220 models in the marketplace from a variety of vendors. While the Apple iPad remains the brand leader in the media tablet segment, the market awareness has paved the way for more and more device manufacturers to enter the marketplace -- especially in the lower price product category. The market for sub-$400 media tablets is expected to see significant growth over the next five years, occupying more than 60 percent of the market share by 2016, while the market for the over $400 segment is expected to shrink. According to Jeff Orr, group director, consumer research at ABI Research , "The majority of new entrant media tablet models have been in the sub-$400 segment that focuses on growth markets like India and China. The strong wave of growth in this segment over the next few years is expected to be driven by the adoption in...

Mobile network service providers in developed nations who plan to grow their smartphone subscriber base should invest the time and effort to better understand the customer segments in their markets -- and do it soon, as media tablets and ereaders start to compete for consumer attention and available cash. Smartphone adoption requires of a recurring monthly data service fee in order to use the device. In contrast, media tablets and ereaders can function with only a Wi-Fi connection. Granted, each device serves a different main purpose, but consumers with limited income may conclude that they must choose one device over the other. Focusing on the Value Proposition The spectrum of possibilities for consumer electronic (CE) devices that power our digital lives have undergone disruptive changes over the past several years. Now, more than ever, people have a plethora of entertainment options. Smartphones have evolved from basic text-based communication tools to multimedia hubs. Erea...

Worldwide shipments of media tablets rose by 23.9 percent on a sequential basis in the third quarter of 2011 (3Q11) to 18.1 million units, according to the latest market study by International Data Corporation ( IDC ). That represents an increase of 264.5 percent from the same quarter last year, but 5.8 percent below the original forecast of 19.2 million units. Despite these slightly lower-than-expected shipments in 3Q11, IDC anticipates a strong demand in 4Q11 and has increased its worldwide shipment forecast for 2011 to 63.3 million units -- that's up from a previous projection of 62.5 million units. Apple shipped 11.1 million units in 3Q11, up from 9.3 million units in 2Q11. That represents a 61.5 percent worldwide market share (down from 63.3 percent in 2Q11). HP shipped 903,354 units to grab a 5 percent share of the worldwide market, number three behind Samsung's 5.6 percent market share. After IDC updated its taxonomy to move LCD-based devices -- such as Barnes ...

According to the latest market study by Juniper Research , they found that continued strong growth in the eReader market, combined with an upsurge in usage across media tablets, will push annual revenues from eBooks delivered to portable devices to $9.7 billion by 2016 -- that's up from $3.2 billion this year. The study found that the increasing demand for media tablets means that these devices will account for nearly 30 percent of all eBook downloads by 2016. In addition to the higher rate of tablet penetration, eBook access on these devices has already been boosted by the launch of leading brand bookstore applications, such as Apple's iBookStore and Amazon's Kindle. While mobile handsets currently account for the largest share of eBook downloads, the majority of these are comprised by the Japanese manga market. Elsewhere, smartphones are not -- and are unlikely to become -- a primary reading device. However, bookstores are increasingly seeking to enable synchronis...

The ongoing increase in media tablet, smartphone and eReader device adoption has stimulated demand for high-quality multimedia content -- including video, audio, interactive games, news, books and periodicals. Digital media publishers have been busy re-purposing their archive content and are now ready to accelerate plans for new content development in 2012. The upside market opportunity is apparently unprecedented. eMarketer estimates that the number of U.S. tablet users will reach 89.5 million in 2014 -- that's up from 33.7 million in 2011. Tablet users will make up 35.6 percent of internet users in 2014 -- that's up from 14.5 percent this year. U.S. adult eReader users will reach 53.9 million by 2014 -- that's up from 33.3 million in 2011. eMarketer also expects robust growth in smartphone users, even though that product category is more mature than tablets and eReaders. By 2015, there will be 148.6 million smartphone users in the U.S. -- that's up from 90.1...

According to the latest market study by Juniper Research, they now forecast that eReader shipments will reach 67 million by 2016 -- that's nearly triple the 25 million devices they expect to reach the market in 2011. While this is less than half the 55.2 million media tablets that will be shipped this year, the price of the market-leading Amazon Kindle eReader has fallen significantly (from $349 to $79) since it was launched. According to Juniper's assessment, electronic ink technology will ensure that eReaders continue to carve out a significant niche in the portable wireless device ecosystem. Amazon recently announced its first media tablet, the Kindle Fire, which many thought might signal a shift away from dedicated eReaders in its overall device strategy. However, in tandem, it announced three new Kindle eReader models -- two of which include touchscreen technology, borrowed from tablets, and now considered as a must-have feature in many of the new devices. ...

More people will purchase their first media tablet, or a similar device, this coming holiday season. IDC Canada shared some insightful findings from their latest market study of new device owners. Today, Canadian consumers have many alternatives to choose from when making a media tablet purchase decision. This week, the launch of the Amazon "Kindle Fire" and the Barnes & Noble "Nook Tablet" will likely establish yet another segment within this device category for consumers to explore and consider. IDC now tracks 50 different media tablet models in Canada alone, compared to just a handful at this time last year. The plethora of devices has made it challenging for the average person to evaluate and select the device most suitable for their needs. Yet, in some ways, the market has not changed much at all. For the time being, Apple remains the market leader. But the market is about to evolve -- with a continuous change in the mix of portable device vendors,...

Creative design and enhancements to the user interface has changed the look and feel of mobile phones. As a result, touchscreens can claim as much credit for the booming success of smartphones as can 3G data speeds. Since the launch of the Apple iPhone, smartphones with touchscreens have gone from 7 percent of the total smartphone volume in 2006 to 75 percent in 2010. They were a key driver to the smartphone market growing more than 325 percent over that period. During the next five years, touchscreens will be as pervasive in smartphones as Wi-Fi chipsets are today -- reaching 97 percent of all smartphones by 2016. The screen is the point of fulfillment for all that a mobile device promises to deliver to its user, so there is little surprise in the impact it can have on its success. However, it was the evolution of screen and touch technologies that triggered the market's rapid growth. The more economical resistive touch technology has been almost universally replaced in sm...

Many analysts predicted the demise of the e-reader product category when Apple launched the iPad -- igniting the media tablet competitor frenzy. The analysts assumption, an erroneous one, was that the buyer of each product was essentially the same. Now, as the reality sets in, opinions have evolved. While the tablet market’s growth has had some impact on expected e-reader shipments worldwide, the two devices are inherently different. Each device segment targets a different type of consumer. Standalone e-reader devices target the avid book and periodical readers -- to whom the reading experience is central -- while tablets are targeted towards those consumers who prefer a richer multimedia consumption experience. According to the latest market study by In-Stat , device component vendors are benefiting from the demand in both categories. As an example, they're forecasting that the combined semiconductor opportunity for media tablets and e-readers will approach $16 billio...

Introduced last year, the Apple iPad quickly established a new market for media tablets. eMarketer estimates that 9.7 million U.S. consumers owned a tablet device by the end of 2010, and that 24 million will have one by the end of 2011. In a May 2011 survey on device ownership -- the first one taken by a research team at least a year after the iPad’s release -- the Pew Internet & American Life Project found that overall tablet penetration increased from 5 percent of American consumers in November 2010 to 8 percent in May 2011. According to an eMarketer report, device ownership increased the fastest among young adults ages 18 to 29, Hispanics, those with the highest incomes, and people who had attended some college -- all groups that now have the highest levels of tablet penetration. In addition, men are more likely than women to own a media tablet. By contrast, overall eReader penetration is higher -- at 12 percent of American consumers -- and has doubled since November...

To date, the traditional publishing industry has been negatively impacted by the shift from print to online distribution -- it's a disruptive market transition that has been very challenging for the majority of legacy print media companies. Moreover, consumers have resisted paying for most content on the web, and the soft economy has taken a toll on the online advertising-based models that many publishers embraced -- in the hope that it would become a replacement for their declining print revenue. The arrival of eReaders and media tablets comes at an opportune time for publishers. But there's a key question, yet to be answered. Are they fully prepared to embrace the apparent trends in the marketplace and adapt their business models? An accelerated plan of action is essential, not optional. The Amazon Kindle and Apple iPad clearly established new device categories and the customers for these products have responded by buying more digital content. eMarketer estimates th...

Worldwide PC shipments are now expected to grow by just 4.2 percent in 2011 -- down from a February forecast of 7.1 percent -- according to the latest market study by International Data Corporation ( IDC ). A combination of declining first quarter shipments, an increasingly conservative economic outlook, relative saturation among developed market consumers, and competing products will lead to slow growth in 2011 before a rebound in 2012. For 2012 through 2015, growth is still expected to fall in the 10 to 11 percent range. Consumer PC purchases have been a cornerstone of PC growth over the past five years. During this time, a transition to low-cost portables helped drive purchases by new users in emerging markets as well as replacement and secondary systems in more mature markets. Consumer PC shipment growth averaged 18.9 percent from 2005 to 2007, almost 7 percent faster than commercial shipments. During 2008 and into 2009, consumer growth was actually faster at more than 21 p...

According to the latest market study by IDC , more than 1.9 million eReader units were shipped in the EMEA region during 2010, with most of these distributed in Western European markets. Although EMEA accounts for just over 15 percent of the worldwide market, IDC forecasts sales to reach 9.6 million units by 2015 -- generating a 37.9 percent compound annual growth rate (CAGR). Since their first appearance in 2007, eReaders have experienced much higher growth in North America than in EMEA, mainly as a result of the rapid uptake of Amazon Kindle devices by consumers in the U.S. market. However, as many European markets experience double-digit growth rates, the EMEA region is now set to expand, roughly matching the size of the North American market by 2015. Many factors are contributing to this growing trend. Firstly, e-ink technology and long-lasting battery charge have proven to offer an appealing reading experience for avid readers in EMEA -- which justifies the purchase of a sp...

Several factors contributed to the latest contraction in the worldwide PC market. Global PC shipments declined 3.2 percent during the first quarter of 2011 -- compared to the same time last year, according to the latest market study by International Data Corporation ( IDC ). In contrast, IDC expected a mere 1.5 percent growth in shipments. Clearly, a spike in fuel and commodity prices and the disruptions in Japan added to the industry problems, further dampening a market struggling to maintain momentum. The PC market showed clear indications that frugality, combined with a shift of focus, will be the norm for the time being. Mature regions are more focused on necessary replacements, as few compelling reasons were present to buy secondary PCs. Emerging markets fared better due to lower saturation rates, but also slowed somewhat with Asia-Pacific (excluding Japan) slowing to a 5.6 percent growth and China continues to slow after experiencing high growth in 2010. "While the c...

Demand for Media Tablet and eReader devices continues to be strong, with product design innovations increasing user adoption. As a result, worldwide revenues for device semiconductors grew over 2,000 percent to $3.3 billion in 2010, according to the latest market study by International Data Corporation ( IDC ). With the arrival of Android Honeycomb, dual core processors, and increased bandwidth, IDC expects Media Tablet and eReader semiconductor revenues to grow by 120 percent year over year in 2011. "The opportunity for semiconductors in Media Tablets and eReaders has exploded and semiconductor suppliers are scrambling to bring to market semiconductor and software platforms to enable these products," said Michael J. Palma, research manager for Consumer Semiconductor research at IDC. Beyond semiconductors, these suppliers are also providing OEMs with much of the system software as well as support for access into app stores, which is helping to dramatically shorten produ...

eMarketers reports that media tablets and ereaders have become the preferred platforms for consuming online digital media. Moreover, 2010 sales of both types of device were strong, according to the laterest market study by International Data Corporation (IDC). Worldwide, 10.1 million tablets were shipped in the forth quarter of 2010, up from 4.5 million in Q3 2010. Ereader shipments rose from 3 million in 2009 to 12.8 million in 2010. eMarketer estimates worldwide tablet sales will reach 24 million this year, about 80 percent of which will be Apple iPads. Research from Boston Consulting Group (BCG) confirms that tablet and ereader purchase intentions are high -- especially among those who are already familiar with the devices. Half of internet users in the U.S. market who knew about tablets and ereaders planned to buy one in the next year, and 70 percent were considering a purchase in the next three years. Furthermore, the overall interest was nearly as high worldwide. And,...