Tablets to outpace total PC shipments in last quarter of 2013 — IDC

MANILA, Philippines — For the first time since their re-introduction to the market, tablets will outship PCs worldwide during the last quarter of the year, signifying a continuous decline for the PC industry as consumers opt for more portable devices.

But though this is the case, PC unit shipments will remain to be larger than the tablet category for the entirety of 2013, as the latter settles with just 227.3 million units shipped around the world compared with the former’s combined unit shipments of 315.3 million for both desktop and laptop devices.





“PCs shipments are still expected to be greater than tablet shipments for the full year, but IDC forecasts tablet shipments will surpass total PC shipments on an annual basis by the end of 2015,” IDC said in a recent statement.

Though both the smartphone and tablet markets are showing early signs of saturation, IDC said it believes the introduction of lower-priced devices in more markets will be a “game changer” for both categories.

These low-cost tablet devices will spark more interest and uptake among first-time buyers in several commercial sectors around the world such as education, it added. This view is reinforced by a recent report by research firm GfK, which stressed that the “strong showing of tablet sales in early 2013 could be attributed to the decline in average pricing for most tablet models, which are now being sold at around P13,000, compared to the P24,373 average pricing recorded last year.”

GfK also pointed out that as much as P3.6 billion worth of tablet devices were sold locally during the first five months of the year, led by 7-inch tablets that have become the sweet spot for size and affordability for consumers.

“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,” said Megha Saini, Research Analyst with IDC’s Worldwide Quarterly Smart Connected Device Tracker.

Phablets eating tablets

Despite the glowing growth forecasts for the tablet segment, IDC said some form of cannibalization is in the horizon: smartphones are slowly encroaching on the space safely held by 7-inch tablets as manufacturers like Huawei, ZTE, and Samsung produce mobile devices with sizes exceeding six inches.

“The device world has seen several iterations of cannibalization impacting different categories, with the last few years focused on tablets cannibalizing PC sales,” said Bob O’Donnell, Program Vice President, Clients and Displays. “Over the next 12-18 months, however, we believe the larger smartphones, commonly called ‘phablets’, will start to eat into the smaller-size tablet market, contributing to a slower growth rate for tablets.”

Looking forward, IDC said the worldwide smart connected device space — which includes PCs, tablets, and smartphones — will continue to surge, with overall shipments surpassing 2 billion units by the end of 2015 with a market value of $735.1 billion.

In terms of device mix, total PC shipments accounted for 28.7 percent of the smart connected device market in 2012 while tablets accounted for 11.8 percent and smartphones for 59.5percent.

By 2017, total PCs are expected to drop their share to 13 percent, while tablets and smartphones will contribute 16.5 percent and 70.5 percent respectively to the overall market. The shift in demand from the more expensive PC category to more reasonably priced smartphones and tablets will drive the average selling price (ASP) for the collective market from $462 in 2012 to $323 in 2017, IDC added.

source: interaksyon.com

Phablets overtake tablet and PC shipments in Asia — IDC

MANILA, Philippines — They’re too big to be a phone but too small to be a tablet, but “phablets” are slowly finding a way out of their identity crises as IDC reported a steep climb in phablet shipments for the second quarter of the year, outstripping even traditional performers such as tablets and laptops.

Coined early on by Korean technology firm Samsung, phablets strike the middle ground between smartphones and tablets that have made them ideal mobile devices for people who want to view more of their content without having to lug around a big-screen device.

According to IDC’s quarterly trackers for mobile phones, tablets, and PCs, phablets emerged as one of the most coveted devices for the second quarter of the year, with device vendors shipping a total of 25.2 million phablets during the period — or almost the same number of tablet and laptop shipments combined.

“Samsung was the first to succeed in phablets with the Galaxy Note launched in APEJ in 2011 Q4, capturing 90 percent of the phablet market. Fast forward to 2013 Q2, and Samsung’s Note series counts for less than 50 percent,” says Melissa Chau, Senior Research Manager with IDC Asia/Pacific’s Client Devices team.

IDC further noted that the number of phablet shipments doubled since the first quarter of the year, and jumped by 620 percent for the same quarter in 2012. It is worth noting that manufacturers such as Samsung, Huawei, ZTE, HTC, and LG have simultaneously launched their phablet offerings during the Mobile World Congress in February, and shipping the models in the months after.

Though phablets started out as a trend, IDC noted that these devices measuring anywhere from five to seven inches are slowly going mainstream as manufacturers such as Samsung and Huawei elevate the category to flagship status.

Samsung latest flagship phone — the Galaxy S4 — for instance measures a full five inches, with other manufacturers following suit and pushing the literal boundaries of their phone models to accommodate more screen real-estate.

But it’s not just multinational device makers that are making a killing on phablets, said IDC.

“What’s changed now is the added pick up of phablets in emerging markets like China and India, not just the plethora of big-name vendors competing head-to-head with Samsung, but instead the low-cost local players who have swooped in to offer big screens for less money – averaging a retail price of US$220 versus Samsung’s US$557,” Chau added.

In the Philippine setting, for example, local brands such as Cherry Mobile and MyPhone have made a killing out of big-screen phones such as the Cherry Mobile Blaze 2.0 and the recently launched MyPhone Iceberg, which both retail for just below P12,000 and have already made a killing in the local market.

“Phablets have proven to be more than just a short blip of a fad and will drive the region. Over the long term however, this does not mean that one size fits all. As tablets get more productive, and new categories such as smart watches evolve, IDC expects continued diversity among smart connected devices,” the research firm added.

source: interaksyon.com

Apple looking at bigger iPhone screens, multiple colors — sources

Apple Inc is exploring launching iPhones with bigger screens, as well as cheaper models in a range of colors, over the next year, said four people with knowledge of the matter, as it takes a cue from rival Samsung Electronics.

The moves, which are still under discussion, underscore how the California-based firm that once ruled the smartphone market is increasingly under threat from its aggressive South Korean competitor. Samsung has overtaken Apple in market share through the popularity of its bigger-screen Galaxy “phablets” and by flooding the market with a range of products at different prices.

Apple is looking at introducing at least two bigger iPhones next year — one with a 4.7-inch screen and one with a 5.7-inch screen — said the sources, including those in the supply chain in Asia. They said suppliers have been approached with plans for the larger screens, but noted it is still unclear whether Apple will actually launch its flagship product in the larger sizes.

“They constantly change product specifications almost to the final moment, so you’re not really sure whether this is the final prototype,” said one person with direct knowledge of the matter.

Apple declined to comment.

Under pressure

Apple’s possible shift to offer what is often referred to as “phablets” – chunkier smartphones not quite big enough to qualify as tablets – comes as the long-time consumer and investor darling faces pressure to deliver more than one new handset model a year. Critics say its pace of innovation has slowed since the death of legendary co-founder Steve Jobs.

The iPhone 5 launched last September was the first to veer away from the Apple phone’s 3.5-inch screen, which Jobs famously deemed “the perfect size for consumers” and had been used in every iPhone since the iconic device was unveiled in 2007.

The current iPhone 5 has one of the smaller screens among the best-selling smartphones in the mobile market, where consumers spend more time browsing the web and streaming content. Samsung’s Galaxy S4 and Galaxy Note 2 have 5-inch and 5.5-inch screens, respectively.

For this year, Apple is expected to launch two new models, widely referred to as the iPhone 5S, with new fingerprint technology, and a cheaper version in plastic casing, supply chain sources have said. Apple plans to dress up the cheaper phone in a range of 5-6 colors to differentiate it from the more expensive model that has traditionally come only in black and white.

The U.S. firm has discussed a price of $99 for the cheaper phone, the timing of which could slip to next year, one of the people said. It’s not yet clear what the final price would be.

Apple – whose revenue growth has decelerated from the heady days of 2010 when it introduced the iPad and when the iPhone was the world’s top selling smartphone – has sought ways to re-energize its flagship line.

Broader product range

Analysts say the company needs a cheaper gadget to push on in growth markets in China and India, and to counter Samsung’s edge in having phones priced up and down the spectrum. China, the world’s biggest smartphone market, is set to grow 48 percent this year, outpacing the global increase of 31 percent, according to industry forecasts.

While Apple only offers a single phone model across all markets, it has successfully marketed the iPod music player and its iPad in different sizes and at varying prices. Asked at last month’s AllThingsD industry conference why Apple hasn’t launched different sized iPhones, CEO Tim Cook said: “We haven’t so far. That doesn’t shut off the future.”

He explained that the range of iPods serve different audiences and needs. “On the phone, that’s the question. Are we now at a point to serve enough people that we need to do that?”

Cook noted a larger screen comes with trade-offs on features such as battery life, resolution and brightness.

Test production for both the standard and cheaper iPhone models aims to start next month, with mass production ramping up in August to meet a September launch target, two people said.

“Trial production was originally planned to start in June, but the mixing of colors is taking longer than expected as Apple has very high and idealistic standards,” said one source in Asia, adding 20 million plastic iPhones are expected to ship in the October-December quarter.

Japan’s Sharp Corp and Japan Display and South Korea’s LG Display will supply the panels for the aluminum iPhone 5S and the plastic iPhone, while Hon Hai Precision Industry will assemble the higher-end phone and Pegatron will put together the cheaper model.

source: interaksyon.com