Tuesday, Sep 16, 2014

Demand for tablet PCs fall

Demand for tablet PCs fall IDC has lowered its worldwide tablet plus 2-in-1 forecast for 2014 by almost 50 per cent.
New Delhi | Posted: August 30, 2014 8:44 pm

Do you need a tablet? Well, people have realised that a smartphone of about 5 inches or more, and a laptop with an 11 or 13 inch screen eliminates the need for tablet PCs altogether.

Following a second consecutive quarter of softer than expected demand, International Data Corporation (IDC) has lowered its worldwide tablet plus 2-in-1 forecast for 2014 to 233.1 million units which is around half of the 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 for Tablets. “But, when we start digging into the regional dynamics, we realize that there is still a good appetite for this product category.”

IDC anticipates that price pressure on 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 US$ 373 or around Rs. 23,000 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 US$302, representing an annual decline of 10%.

“Driven primarily by small devices, we expect the rest of the world to account for the majority of shipments in the years to come,” said Jitesh Ubrani, Senior Research Analyst for the Worldwide Tablet Tracker. “But in terms of dollars spent, medium- to large-sized devices in North America and Western Europe will still produce significant revenues.”

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