What is going on in the tablet market?
New research finds that the total tablet market, inclusive of both tablets and 2-in-1 devices, is forecast to grow 19.4% in 2014, down from a growth rate of 51.6% in 2013.
The International Data Corporation (IDC) has reduced the 2014 forecast in its Worldwide Quarterly Tablet Tracker report by 3.6% from its previous projection to 260.9 million units globally.
The reduction in the short-term forecast was due to slowing consumer purchases as hardware iterations slow and the installed base — particularly in mature markets — continues to grow.
Over the course of the past two years average selling prices (ASPs) have declined rapidly in the tablet market, but this too appears to be slowing, the IDC said.
In 2012, ASPs declined 18.3% from the previous year, and in 2013 prices dropped another 14.6%.
Price erosion has started to slowly bottom out, with ASPs forecast to drop a modest 3.6% in 2014.
IDC believes ASP declines will slow for several reasons; chief among them are the growth of higher-priced commercial shipments and a consumer movement away from ultra-low cost products.
“After years of strong growth, we expect the white-box tablet market to slow in 2014 as consumers move to higher-end devices that work better and last longer,” said IDC’s Tom Mainelli, Program VP, Devices & Displays.
“In mature markets, where many buyers have purchased higher-end products from market leaders, consumers are deciding that their current tablets are good enough for the way they use them. Few are feeling compelled to upgrade the same way they did in years past, and that’s having an impact on growth rates.”
IDC noted that a large portion of the tablet growth in commercial to date has been in education, but looking ahead, it expects tablets to continue to infiltrate small, medium, and large businesses around the world.
“The choice of operating system will be a key differentiating factor when it comes to success in the commercial segment,” said Jitesh Ubrani, Research Analyst, Worldwide Tablet Tracker.
“Though Android and iOS will remain dominant, we expect Windows-based devices to capture more than a quarter of the market as its benefits become apparent thanks to growing adoption of 2-in-1s.”
Loading ...