Two new surveys out this week show an accelleration in the tablet market with JP Morgan Securities predicting the market will eat into the share of PCs and begin a brutal price war as the market tops $35 Billion in 2012.The analyst says steep adoption rates and the increasing number of available devices will drive growth in the sector, while a report out by In-Stat claims the market drivers for tablet shipments include an increase in the availability of new media, like magazines, newspaper and books, as well as the number of applications available for mobile computing, such as web browsing, email, social networks, and video consumption.
In-Stat said it expected tablet shipments to surpass 58 Million units in 2014, but JP Morgan’s forecast is more bullish, expecting unit shipments of 79.6 million by next year.
According to Reuters, JP Morgan analyst Mark Moskowitz said: “We expect tablets to have an increasingly negative impact on PC shipments. More than 35 percent of Tablets sold in 2012 will be cannibalistic, particularly as relates to netbooks and notebooks.”
JP Morgan revised its previous forecasts for the devices, raising revenue estimates to $26.1 billion from $24.9 billion and 2012 estimates to $35.2 billion from $34.1 billion.
Reuters said JP Morgan expects 2011 unit shipments of 47.9 million, up from its prior view of 46.1 million. For 2012 it sees unit shipments of 79.6 million, up from its prior view of 78.2 million.
As the Tablet market gets more crowded this year, InStat also expects content for Tablets to continue an upward trend, leading to greater demand. It expects applications like complex games that are “more immersive” to be developed at a rapid pace this year specifically for Tablets, as opposed to smartphones or other mobile devices.
Jim McGregor, chief technology strategist at In-Stat said: “Although the consumer market is the primary target for tablets right now, the commercial market also represents a potential revenue opportunity for tablet OEMs. Usage models and user requirements will differ in the commercial market, but as the overall tablet market becomes more defined over the next year, the opportunities for Tablets within business markets will become more apparent.”
InStat’s report claimed 13.2% of its survey respondents currently own a tablet. Email and web browsing were the top two Tablet uses by current owners at 68% and 66% respectively. And nearly 55% spend 9 hours or more each week using their Tablet.