Who needs a 7″ tablet when you can have a 6″ smartphone?Tablet shipments are down as small tablets or phablets (phone and tablet) eats into demand for 7 inch tablets, according to analysts IDC.
“In some markets, consumers are already making the choice to buy a large smartphone rather than buying a small tablet, and as a result we’ve lowered our long-term forecast,” says Tom Mainelli, IDC Research Director, Tablets.
The difference between a 6-inch smartphone and a 7-inch tablet isn’t great enough to warrant purchasing both.
The market has trended towards small tablets in a big way of late, but the rise of large phones or phablets like the HTC Max and the Samsung 5.7″ Note 3 could push consumers back towards larger 10 inch tablets.
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Analysts have downgraded shipment forecasts of iPads, Samsung Tabs & Co to 221.3 million units in 2013 – down from 227.4 million forecasted.
Tablet growth is forecast to slow down to 22% in 2014, as tabs reach saturation.
“In mature markets like the U.S. where tablets have been shipping in large volumes since 2010 and are already well established, we’re less concerned about big phones cannibalizing shipments and more worried about market saturation,” says Mainelli.
By 2017, annual market growth will slow to single-digit percentages and shipments will peak at 386.3 million, according to IDC’s latest forecast.
One key factor to watch going forward is the mix of small vs. large tablets.
Apple’s launch of the iPad Air, a much thinner and lighter version of its 9.7-inch product, could herald another market transition back towards larger screens.
A trend towards larger tablets could be a positive development for Windows tablets, which generally benefits from a larger screen area. But Microsoft-based tablets are not expected to steal shares from iPad and Android for a while yet.
For months, Microsoft and Intel have been promising more affordable Windows tablets and 2-in-1 devices. But still, analysts don’t expect them to gain much traction.
“Tablets are continuing to sell really well and are certainly filtering down to every member of the family,” Betta Home Living CEO Graeme Cunningham told CN. With starting prices sub $100, these are the perfect replacement for portable DVD players for kids on long family drives. The Galaxy Kids tablet is also proving popular, he said.
JB Hi-Fi has also reported excellent sales of the Samsung Note 3 phablet, Samsung Galaxy Tabs and Microsoft Surface 2 is also “starting to get traction,” which Marketing Manager Scott Browning admits he is “very surprised” about.
