IDC trims tablet forecasts, expects wearables, 'phablets' to affect sales

Lowers shipment estimates by 1%, says emerging markets will account for majority of tablet market by 2017

Researcher IDC today slightly lowered its tablet shipment forecast for 2013 and beyond, saying that competing technologies, including larger-sized smartphones and futuristic wearable computing devices will steal some dollars that would have gone to tablets.

IDC says phablets and wearable tech will affect the sales of tablets like Google's Nexus 7 (above).
IDC says phablets and wearable tech will affect the sales of tablets like Google's Nexus 7 (above).

In its revised predictions, IDC trimmed 2013 tablet shipment expectations by 1% from 229.3 million units to 227.4 million.

The change also affected forecasts IDC has made for the years 2014-17. Today, IDC said global tablet shipments in 2017 will almost reach 407 million, about 1% less than a May estimate of 410 million.

IDC's projection for 2013, however, hinges on the tablet business having a bang-up back half of the year.

"A lower than anticipated second quarter, hampered by a lack of major product announcements, means the second half of the year now becomes even more critical for a tablet market that has traditionally seen its highest shipment volume occur during the holiday season," said Tom Mainelli of IDC in a statement.

Apple's iPad, for example, had a disappointing second quarter, with tablet shipments down 14% from the same period the year before. Like Mainelli, Apple CEO Tim Cook explained the downturn on the company's lack of a new iPad in the quarter. The first Retina-equipped iPad debuted in March 2012, and sales ballooned.

Along with slightly lower shipment tallies -- which IDC attributed to the influence of larger smartphones, often dubbed "phablets" by wags, and wearable accessories that link to smartphones -- the research firm also revised the timetable when emerging market dominate the business.

Phablets and wearables will impact developed markets -- the U.S., Western Europe and Japan -- before they do other regions, said Mainelli, and cause a faster-than-predicted slowdown there.

Where earlier this year IDC predicted that developed markets would hold a very narrow edge over emerging markets in 2017, today it flipped the two, saying emerging markets -- Africa, Central and Eastern Europe, China, Latin America and the Middle East -- will account for 51% of all shipments in 2017.

Not surprisingly, China was highlighted as one of the countries expected to drive tablet sales.

"Much of the long-term growth will be driven by countries like China where projected growth rates will be consistently higher than the worldwide average," added Jitesh Ubrani, another IDC analyst, in the same statement.

If IDC's estimates end up accurate, Apple will have to adapt to retain its diminishing share of the tablet business. While the Cupertino, Calif. company dominated the market with relatively high-priced devices until 2012, ever-cheaper models based on Android are continuing to drive down Apple's share.

The price competition will only get more fierce.

"We expect average selling prices to continue to compress as more mainstream vendors utilize low-cost components to better compete with the whitebox tablet vendors that continue to enjoy widespread traction ... despite typically offering lower-quality products and poorer customer experiences," Mainelli said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Hi,When online retailers establish their multi channel strategy and they are using or will to use live chatbot to support their customers...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in