Tablet-Market-ForecastYet another lowered forecast for tablet shipments this year comes today from IDC following a similar move from Morgan Stanley earlier this month. IDC announced today that it’s lowering its tablet shipment 245.4 million units down from a total 260.9 million units, which is around 12.1% year-over-year growth for the category vs the 51.8% growth last year. We’ve seen how much growth potential there is for tablets vs PCs and smartphones, but IDC’s report notes that tablets might see increased competition from the phablet category this year. The report classifies phablets as smartphones with 5.5-inch to 7-inches and IDC thinks Apple’s new larger iPhone could eat into some of its iPad sales:

“Two major issues are causing the tablet market to slow down. First, consumers are keeping their tablets, especially higher-cost models from major vendors, far longer than originally anticipated. And when they do buy a new one they are often passing their existing tablet off to another member of the family,” said Tom Mainelli, Program Vice President, Devices & Displays at IDC. “Second, the rise of phablets – smartphones with 5.5-inch and larger screens – are causing many people to second-guess tablet purchases as the larger screens on these phones are often adequate for tasks once reserved for tablets.”

IDC notes that the share of smartphone shipments captured by so called phablets doubled from 4.3% in Q1 of 2013 to 10.5% in Q1 of this year. representing 30.1 million units shipped. “As large phones clearly impact near-term tablet growth, IDC expects the market to rebound by shifting its focus back toward larger-screened devices.”

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

4 Responses to “IDC lowers tablet shipment forecast, expects a 5.5-inch iPhone could cannibalize iPad sales”

  1. Cannibalizing with a higher profit product is a good thing

  2. people upgrade their phones more often it seems.