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

Ahead of Christmas rush, Customs warns OFWs, balikbayans on 'unrealistic' freight forwarding prices

MANILA – Unrealistic cutthroat prices by cargo forwarders are to blame for the spate of undelivered 'balikbayan' boxes, the Bureau of Customs said on Monday.

Commissioner Rufino Biazon told InterAksyon.com that freight forwarders are driving down their rates to attract more customers, who end up not receiving their packages because the cargo handlers are unable to settle taxes and duties due on the shipments.

He said many cargo forwarders failed to settle the taxes and duties on their container shipments starting last year, as most of these firms engaged in price undercutting so they can attract more overseas Filipino workers to avail of their services.

The standard fee for a balikbayan box is $100, inclusive of taxes and duties, but some cargo forwarders have been offering their services for as low as $50 a box, Biazon said.

"Then when the cargoes arrive at the ports, the forwarders have no money to pay the taxes and duties because they are charging unbelievably low [rates] to their customers. The cargo forwarder's failure to pay the taxes and duties is the reason why they are blacklisted," the Customs chief said.

"As a policy, the containers may only be released once the consignees have paid the corresponding taxes and duties of these containers. We don’t release unless the consignee fulfills its obligation. These cargoes, which include balikbayan boxes, are consolidated in one container, and the basis of the taxes and duties is per container and not per box," he said.

The consignee, which is the cargo forwarder, has 30 days to settle the taxes and duties, failing which Customs would forfeit the shipment in favor of government and auction it off.

InterAksyon.com earlier reported that the Department of Trade and Industry-Philippine Shippers' Bureau has blacklisted a number of cargo forwarders and their foreign partners because of consumer complaints on undelivered balikbayan boxes.

The blacklist was released just as OFWs began shipping home balikbayan boxes for the Christmas season.

The DTI-PSB has since revised the blacklist, removing some forwarders that addressed customer concerns and adding others that are the subject of similar complaints.

source: interaksyon.com