Wednesday, 9 January 2013

Tablet Market will exceed the Notebook Demand

By Yoshi Naruse


Tablet PC shipments are expected to reach over 240 million items worldwide in 2013, easily overcoming the 207 million notebook PCs that are displayed to ship, according to NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report. In a market that has been controlled by one big player, Apple, switching market size is creating the chance for a larger variety of opportunity, which will drive shipment increase in 2013 to 64% Y/Y.

The constant development and adoption of new screen sizes is making both large and tiny brands to gain market traction in all regions and make new demand for tablet PCs. The tablet market has been led by Apples 9.7 iPad, but in 2013 a new group of little tablets will take over the market. Tablet PCs with 7-8 screen sizes is expected to account for 45%, or 108 million units of the market in 2013, overtaking the 9.7 size which will account for 17% share or about 41 million units.

As the variety and demand for brand new screen sizes grow, so will market growth in connecting markets. Having passed EMEA for 2012 to turn into the second-largest market for tablet PC shipments, China will have 27% of the worlds tablet market in 2013 with shipments of 65 million units, driven by small local brands. However, North America will remain the biggest market with a 35% share (85 million units) in 2013. In both China and North America, tablet PC shipments beat notebook PC shipments in 2012.

Notebook PC shipments have been slowed by lowering demand worldwide, reaching even connecting markets where low scoring rates could have stimulated demand. But, making tablet PC adoption is stymieing notebook PC growth. The second half of 2013 might make a respite as new processors aim to bring more tablet PC-like features, such as instant on, all-day battery life, and sleek form factors, to notebook PCs.

The tablet PC market saw growing investments in North America in the second half of 2012, from major brands that checked not only brand new screen sizes and price points, but also unconventional business models to support their efforts. The subsequent increase in shipments and demand underscored the profits of segmentation in the market as it drove rapid market expansion, said Richard Shim, senior analysis. In 2013, continuing investments are expected worldwide, creating demand to the point that tablet PC shipments guarantees overpass those of notebook PCs.




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