(iTers News) - Shipments of tablet PCs are expected to reach nearly 364 million worldwide in 2014, more than doubling the projected 177 million shipments of standard notebook PC and ultra-slim PCs, according to the NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report. In January, NPD DisplaySearch forecast that tablet PC shipments would exceed notebook PC shipments in 2013, and our latest research reveals that tablet PC shipments will continue to increase across all regions, particularly in emerging markets, as notebook PC shipments decline through 2017. Tablet PC shipments are projected to reach 589 million by 2017, while notebook PC and ultra-slim PC are forecast at 176 million.
“The PC market is clearly shifting away from notebooks and toward tablets,” said Richard Shim, senior analyst with NPD DisplaySearch. “Supply chain indications reveal that previously planned production of notebook PCs is being pulled back due to declining adoption and that brands are gradually increasing the number of tablet PC models in their product mixes. Panel and finished goods suppliers are also increasing production of displays and other components for tablets in order to keep up with the market changes.”
Figure 1: Worldwide Mobile PC Shipment Forecast
Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
Tablet PC growth is fueled by increased adoption in emerging regions, where it is stifling notebook PC growth. PC penetration is low in emerging regions, and first-time PC buyers typically prefer a notebook PC. However, tablet PCs with lower prices, longer battery life, and more convenient usage models are replacing notebook PCs, which is leading to direct cannibalization.
The tablet PC market is also quickly evolving, offering more choices to a growing audience of potential buyers. Consumers can expect to see greater choice in screen sizes, as brands look to differentiate their products and exploit new market opportunities. Tablet PCs with screens smaller than 8” will account for 59% of the market (166 million units) in 2013, but they will account for 63% (277 million units) in 2015. New tablet PC screen sizes will include both 8” and 7.5” sizes, and manufacturers are expected to focus on tablets with prices that are attractive to middle-income buyers.
Figure 2: Worldwide Shipment Forecast by Size Category 2012 - 2017
Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
“Smaller tablets are important, because they will encourage adoption in emerging regions,” Shim said. “Smaller screen sizes translate to lower priced tablet-PC options, since display panels tend to comprise just over a third of the total cost of a tablet, which makes them attractive in price-sensitive markets.”
(Credit : NPD DisplaySearch)