Tablets shipment show sharp decline thanks to phablet success: IDC

Tablets have hit a road-block in terms of sales according to the latest report by IDC, a fact that’s borne out by the Mary Meeker Internet Trends report as well. 

Its latest survey shows a sharp decline in tablet sales after a considerable growth of 51.8 percent in 2013. In 2014, the tablet shipments are expected to grow by only 12.1 percent due to the invasion of a new category of smartphones known as phablets, a cross between a tablet and a phone. These devices offer large displays similar to tablets, but have better cameras and are easier to carry around. From high-end Samsung Galaxy Note series to budget phablets, the smartphone market is trending towards larger displays, even in the mainstream.

“The rise of phablets – smartphones with 5.5-inch and larger screens – are causing many people to second-guess tablet purchases as the larger screens on these phones are often adequate for tasks once reserved for tablets,” Tom Mainelli, Program Vice President, Devices & Displays at IDC, said.

IDC blames sluggish device upgrades by consumers for the decline as well. The report also says consumers holding on to their old tablets with old configurations in the fast-paced consumer electronic market has impacted tablet sales. Secondly, even if the consumer buys a new tablet, the old one is passed on to another member in the family.

In the last one year, phablet shipments has doubled from 4.3 percent in the first quarter of 2013 to 10.5 percent in the first quarter of 2014. This increase would represent 30.1 million units being shipped from manufacturers.

The report says IDC expects the market to rebound by shifting its focus back towards large-screen devices. Microsoft’s 2-in-1, 12-inch Surface Pro 3 will gain distinct amount of traction in the coming days, adds the report.

“The shift back toward larger screens will mark a welcome sea change for most vendors as the average selling price for these devices will remain roughly 50 percent higher than the average sub-8-inch device,” said Jitesh Ubrani, Research Analyst. “Microsoft is also expected to benefit from this shift as the share for Windows-based devices is expected to double between now and 2018.”