Low Cost Products Drive Forecast Increases in the Tablet Market, According to IDC

FRAMINGHAM, Mass.--()--A predicted surge of smaller, lower-priced devices in the tablet market has led International Data Corporation (IDC) to increase its 2013 forecast for the worldwide tablet market to 190.9 million, up from its previous forecast of 172.4 million units. Increases in tablet shipments have been made throughout the forecast period with an average increase of 11% between 2013 and 2016. The latest forecast update of the Worldwide Quarterly Tablet Tracker estimates tablet shipments to be upwards of 350 million by the end of 2017.

"One in every two tablets shipped this quarter was below 8 inches in screen size. And in terms of shipments, we expect smaller tablets to continue growing in 2013 and beyond" said Jitesh Ubrani, Research Analyst for IDC's Tablet Tracker. "Vendors are moving quickly to compete in this space as consumers realize that these small devices are often more ideal than larger tablets for their daily consumption habits."

Android-based tablets expanded their share of the market notably in 2012, and IDC expects that trend to continue in 2013. Android's share of the market is forecast to reach a peak of 48.8% in 2013 compared to 41.5% in IDC's previous forecast. Android's gains come at the expense of Apple's iOS, which is expected to slip from 51% of the market in 2012 to 46% in 2013. Longer term, both iOS and Android will eventually relinquish some market share to Windows-based tablets, with Windows 8 predicted to grow from 1% of the market in 2012 to 7.4% in 2017. IDC expects Windows RT growth to remain below 3% during the forecast period.

"Microsoft's decision to push two different tablet operating systems, Windows 8 and Windows RT, has yielded poor results in the market so far," said Tom Mainelli, Research Director, Tablets. "Consumers aren't buying Windows RT's value proposition, and long term we think Microsoft and its partners would be better served by focusing their attention on improving Windows 8. Such a focus could drive better share growth in the tablet category down the road."

While IDC continues to revise its tablet forecast upward, the firm had done the opposite with the eReader forecast. The growth of low-cost tablets is clearly damaging the prospects of the single-use eReader, and IDC reduced its forecast for the category by an average of 14% between 2013 and 2016. IDC believes eReader shipments peaked in 2011 at 26.4 million units. After declining to 18.2 million units in 2012, the category is expected to grow only modestly in 2013 and 2014, before it begins a gradual and permanent decline beginning in 2015.

Top Tablet Operating Systems, Forecast Market Share and CAGR 2012-2017

Tablet OS

2013
Market
Share 

2017
Market
Share 

2012-2017
CAGR (%) 

Android

48.8% 

46.0% 

14.8% 

iOS

46.0% 

43.5% 

15.0% 

Windows

2.8% 

7.4% 

48.8% 

Windows RT

1.9% 

2.7% 

27.9% 

Other

0.6% 

0.4% 

7.5% 

Grand Total

100.0% 

100.0% 

16.6% 

Source: IDC Worldwide Quarterly Tablet Tracker, March 2013

Table Notes:

  • Windows shipments include Windows 8 and Windows 7 tablets
  • Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.

In addition to the table above, a graphic illustrating the relative market shares of the top 4 tablet operating systems in 2011, 2012, and 2017 is available at IDC.com. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app, available at iTunes, allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

Contacts

IDC
Tom Mainelli, 650-350-6455
tmainelli@idc.com
Twitter: @TomMainelli
or
Ryan Reith, 650-350-6242
rreith@idc.com
Twitter: @ryanreith
or
Michael Shirer, 508-935-4200
press@idc.com

Release Summary

The latest forecast update of the IDC Worldwide Quarterly Tablet Tracker estimates tablet shipments to be 190.9 million units in 2013 and upwards of 350 million by the end of 2017.

Contacts

IDC
Tom Mainelli, 650-350-6455
tmainelli@idc.com
Twitter: @TomMainelli
or
Ryan Reith, 650-350-6242
rreith@idc.com
Twitter: @ryanreith
or
Michael Shirer, 508-935-4200
press@idc.com