Naina KhedekarSep 12, 2013 19:56:27 IST
The research firm IDC has now published its first Worldwide Quarterly Smart Connected Device Tracker report and it makes very grim reading if you are a PC manufacturer. The report, which estimates future shipments of PCs, tablets and smartphones based on current trends and various other factors, says tablet shipments will surpass PCs by Q4 2013. But that's not all, tablets will be under attack from large-screen smartphones or phablets. Specifically, the smaller form factor tablets with displays ranging between 7 and 9 inches will lose appeal.
It predicts that the smart connected device market will grow 27.8 percent year over year in 2013. However, this growth will be driven by tablets and smartphones. In fact, it envisages tablets to surpass PC sales in the fourth quarter of 2013. Still PC shipments are likely to be greater than tablet shipments for the full year of 2013, a situation that will change by the end of 2015.
Smartphones are likely to be shipped in higher volumes and could surpass 1.4 billion units in 2015. By that year, smartphones would account for 69 percent of all smart connected devices shipped worldwide. The research firm also predicts that the shipment value of worldwide smart connected device market will continue its double-digit year-over-year growth of 10.6% in 2013, but could eventually slow down to 3.1 percent by 2017 as the market saturates with the influx of low cost smartphones and tablets.
Smartphones will see the biggest growth over the next four years
"At a time when the smartphone and tablet markets are showing early signs of saturation, the emergence of lower-priced devices will be a game-changer," said Megha Saini, Research Analyst with IDC's Worldwide Quarterly Smart Connected Device Tracker. "Introducing new handsets and tablet devices at cheaper price points along with special initiatives like trade-in programs from Apple and BestBuy will accelerate the upgrade cycle and expand the total addressable market overnight."
IDC also expects a new round of device cannibalization. This time large-screened smartphones could impact the sales of tablets with displays rangin from 7 to 8 inches. The steadily emerging phablet market could propel the adoption of large screen tablets. Bob O'Donnell, Program Vice President, Clients and Displays believes that in the next 12-18 months, 'phablets' will start impacting smaller-size tablet market, contributing to a slower growth rate for tablets overall.
IDC also believes that there is likely to be a shift in demand from the more expensive PC category to the reasonably priced smartphones and tablets, which will drive the average selling price (ASP) of smartphones for the collective market from $462 in 2012 to $323 in 2017.
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