Tag: tablet shipments

Tablet shipments slow right down

cheap-tabletsThe tablet market appears to be overheating and according to IDC’s latest report global shipments slowed down in the second quarter. It appears that many consumers are waiting for new iPads and cheap Androids are not filling the gap.

IDC said unit sales dropped 9.7 percent to 45.1 million last quarter thanks to soft demand for iPads. Shipments of Apple’s tablets dropped to just 14.6 million units, down from 19.5 million in the first quarter. IDC’s original forecast was 17 million, but it appears consumers had other things in mind.

Despite the dip, Apple is still the daddy of the tablet market, with a 32.4 percent market share. For some reason Samsung managed to grab an 18-percent share, despite the fact that its tablets are overpriced and underspecced.

Thanks to its massive market share, Apple’s woes tend to have an immediate effect on overall unit sales. The trouble for Apple is that it simply does not have any fresh products to offer. The iPad and iPad mini are getting old and a refresh is expected over the next few of months. Consumers are simply putting off their purchases until Cupertino rolls out something new, i.e. a Retina iPad mini.

“A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” said Tom Mainelli, Research Director, Tablets at IDC. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter. However, by the fourth quarter we expect new products from Apple, Amazon, and others to drive impressive growth in the market.”

A long Apple drought seems to be just what the doctor ordered for makers of Android tablets, but they don’t appear to be capitalizing on iPad fatigue.

Asus shipped just 2 million units for a 4.5 percent share. Lenovo was in a close second with 1.5 million units and Acer is in hot pursuit with 1.4 million.

To be fair, Android peddlers also had their share of problems. New high-end designs based on Qualcomm’s Snapdragon 800 have yet to materialize, Nvidia’s Tegra 4 was delayed and the first products have started shipping just a few days ago, at the very end of the second quarter. The new Nexus 7 is out, but it also launched too late to make a mark in Q2.

However, IDC believes new tablets from both camps should have a massive effect on shipments toward the end of the year. As for Windows RT and Windows 8.x tablets, we’re not sure they’ll make much headway this year.

PC and tablet shipments to hit 493m this year

pc-sales-slumpCombined worldwide shipments of tablets and PCs are expected to hit 493.1 million units, according to research from Canalys. The firm is expecting seven percent growth, but it will come from tablets rather than PCs.

Tablets are forecast to account for 37 percent of the market, up from 25 percent last year.

By 2017, unit shipments should reach 713.8 million, but only a quarter of them will be laptops, while tablets should make up 64 percent of all shipments.

The tablet market is booming. It more than doubled in the first quarter of the year, while at the same time desktop and laptop shipments took a double-digit plunge. Tablet shipments in 2013 should hit 182.5 million units and by the end of the year they should outpace laptops.

Competition should heat up over the next few quarters, with traditional PC vendors vying for a piece of the lucrative tablet market. Windows 8.1 tablets are expected to start making their mark later this year, but they might not have what it takes to stand up to Android and iOS gear in the low end. Therefore many outfits are turning to Android tablets, including Acer, Asus, Lenovo and HP. However, the trouble with cheap Android tablets is that they’re not good money makers.

“Shipment numbers can be high but absolute margins on these products are expected to be small. Low-price tablets will not be lucrative but it is necessary to compete or a vendor will simply lose relevance and scale. In fact, accessories, particularly cases, as well as the new generation of high-tech app-enabled accessories will likely provide higher margins than the products themselves,” said Pin-Chen Tang, research analyst at Canalys. “This new influx of Android devices will provide a boost to the platform and Canalys therefore expects Android to take a 45% share in 2013, behind Apple at 49%. The iPad mini is expected to continue selling well, becoming more significant in terms of the product mix and spawning a further increase in consumer demand for smaller tablets.’

The other big unknown is Intel’s 2-in-1 convertible push. They should also start appearing later this year and vendors have already shown off some designs, but many are not convinced that they will do well. The first generation isn’t very impressive. They require pricey and relatively hot x86 chips, so they end up a bit bulkier than ARM-based tablets. In addition, Windows 8.x is still an unproven OS in the tablet space and it’s more bloated than Android or iOS.

“These convertible products have disappointed so far. Convertibles are too heavy in tablet form and too expensive when compared with clamshell product,” said the company. Canalys therefore expects that, for at least the next 18 months, consumers will buy separate products, rather than compromise on a Windows 8 convertible or hybrid PC. Even for Android products, alternative form factors are not expected to grow rapidly due to the category being sandwiched between low-priced slates and more familiar Windows-based clamshell notebooks,” said Canalys analyst James Wang.

IHS ups tablet panel shipment forecast

Keep taking the tabletsIHS has increased its forecast for tablet displays by six percent for 2013.

The numbers were boosted by orders from Chinese white-box tablet makers who seem to be growing at a much faster pace than big brands. A total of 262 million displays for tablets should be shipped this year, up from a previous forecast of 246 million units. Looking back at 2012, this represents 69 percent growth. 

Asustek blames Win8 for poor sales

asus-buildingAsustek has cut its Q2 forecast for notebook and tablet shipments and unsurprisingly it is blaming soft demand for Windows 8 for its woes.

The company now expects its second-quarter notebook shipments to fall 10 percent sequentially to 4.23 million units. Back in May the Taiwanese outfit said it hopes to ship 4.8 million notebooks in the second quarter.

Surprisingly tablet shipments were also revised downward by 10 percent to 2.7 million units. Since Asus is moaning about Windows and it is expected to have a strong Android lineup, this may indicate that demand for Windows 8 tablets is even worse than expected – and it wasn’t very optimistic to begin with.

The gloomy figures were delivered by Asustek CFO David Chang during a shareholder meeting on Monday, but he also had a caveat. Chang pointed out that notebook and tablet shipments are poised to grow significantly in the third quarter, thanks to new product launches. Fourth quarter sales should remain flat, or see small gains. Despite the revised forecast, Chang said the company is on track to meet its original goal of shipping 20 to 25 million notebooks and 12 million tablets this year, reports Focus Taiwan.

Asustek CEO Jerry Shen also hinted at a strategic shift from PCs to tablets, which already make up 15 to 20 percent of the company’s revenue. By the second half of the year they might contribute between 20 and 30 percent, as the company managed to boost margins on tablets to a similar level to notebook margins. Shen said this was done by clever research and development, with a pinch of cost cutting.

Needless to say this is very good news for Asus, as the company already has a top notch Android tablet portfolio, from the low-end to its posh Transformer series. Cutting tablet production costs is also good news for Windows tablets in the long run, but they won’t do well this year.

Acer triples tablet shipment target for 2013

acer-logo-ceAlthough Acer is still one of the world’s leading PC makers, it hasn’t had much luck in the tablet market. The same goes for most PC makers, but things could be about to change. Acer has tripled its tablet shipment target for 2013 and unsurprisingly it aims to focus on cheap gear. 

According to Focus Taiwan, Acer’s tablet shipments in the current quarter could reach 65 percent of its total tab shipments in 2012. Back in February Acer said it would ship about 5 million tablets this year, up from 1.8 million units shipped in 2012.

The biggest seller is the Iconia B1, an entry level 7-incher with a price tag of just $150. Acer President Jim Wong pointed out that the Iconia B1 is part of a wider product line and not the only model, which means more cheap Acer tablets are in the works.

“We expect this year’s shipments to grow 3.5 times from last year,” he told a press briefing.

The cheap Iconia B1 is expected to account for 15 to 20 percent of Acer’s tablet shipments this year. The company said it would introduce new models with 8-inch and 10-inch screens by Q3, with prices starting at about $200.

The global tablet market is expected to grow to 240 million units this year, outselling traditional notebooks by more than 30 million units.