Market research firm GlobalWebIndex (GWI) says Apple's forthcoming iPhone models, which are rumoured to have 4.7-inch (11.9cm) and 5.5-inch (14cm) displays, indicates the company's overdue response to consumer demands.
Recent reports say Apple has asked suppliers to manufacture between 70 million and 80 million of its two forthcoming large-screen devices by the end of the year as part of its largest initial production run.
"This is exactly where the company needs to be heading, with the rise of phablets - especially those available from Samsung - having had a serious impact on the iPad's appeal and relevance," says GlobalWebIndex in its daily round-up.
This followed Apple's announcement of its second quarter results yesterday, with CEO Tim Cook saying iPad sales, which like smartphones are coming under growing pressure from Android rivals, at 13.3 million fell a little short of analysts' projections of more than 14 million.
GWI notes that "while our love affair with the smartphone continues, it's no longer burning quite so brightly for the tablet. Indeed, the 12% profit growth reported by Apple came largely from buoyant sales of its iPhone; in contrast, tablets slid for the second consecutive quarter".
According to GWI, Apple will have to work hard to win over the market with its new devices as it will "arrive at the phablet party a long time after its rivals, and with its device likely to be more expensive".
Slowing demand
The International Data Corporation (IDC) has lowered its predicted tablet sales for 2014 to 245.4 million units, down from the previous forecast of 260.9 million units. This was based on what the firm noted was "a greater decline in demand than predicted in the first quarter".
"In the past year alone, the phablet share of smartphone shipments has more than doubled, from 4.3% in the first quarter of 2013 to 10.5% in the first quarter of this year, representing 30.1 million units shipped," said the IDC.
"As large phones clearly impact near-term tablet growth, IDC expects the market to rebound by shifting its focus back toward larger-screened devices. Products with larger screens--like Microsoft's new 2-in-1, the 12-inch Surface Pro 3- are expected to play a greater role in the market going forward".
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