IDC Lowers Tablet Projections for 2014 as Demand in Mature Markets Levels Off

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29 Aug 2014

SAN MATEO, Calif., August 29, 2014 – 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. The new Worldwide Quarterly Tablet Tracker forecast represents a 6.5% year-over-year growth rate, which is well below the 12.1% 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. While mature markets like North America and Western Europe will combine for flat unit growth in 2014, the remaining regional markets will generate 12% unit growth over the same period."

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 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%. As an illustration of evolving tablet usage, shipments of tablets featuring a built-in option of voice calling over cellular networks in the Asia/Pacific (excluding Japan)(APeJ) region reached 25% this quarter, representing annual growth of 60%. This trend suggests that end users in this region are looking for a single device that can meet their needs in terms of voice communication and media consumption, and for some that single device is a tablet and not a smartphone.

"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."

 



Tablet plus 2-in-1 Year on Year Growth

Region

2013 Actual

2014 Forecast

2018 Forecast

North America + Western Europe

25%

0%

4%

Rest of World

88%

12%

5%



Source: IDC Worldwide Quarterly Tablet Tracker, August 29, 2014

Note: Total tablet market includes tablets plus 2-in-1s.

 

 

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About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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