The worldwide tablet market once again contracted in the first quarter, with total shipments of 36.2 million, a year-over-year decline of 8.5%.
This is according to preliminary data from the International Data Corporation's (IDC's) Worldwide Quarterly Tablet Tracker. The report notes the first quarter contraction marks the tenth straight quarter that tablets have experienced a decline. The previous five quarters have recorded double-digit drops.
"The rate at which the tablet market grew from 2010 to 2013 was unlike many other consumer-oriented device markets we've seen before. However, it appears for many reasons consumers became less eager to refresh these devices, or in some instances purchase them at all. We continue to believe the leading driver for this was the increased dependency on smartphones, along with rather minimal technology and form factor progression," explains Ryan Reith, programme vice-president with IDC's Worldwide Quarterly Mobile Device Trackers.
The tablet market comprises two different product categories, which are headed in very different directions, notes IDC. Devices offering a first-party keyboard - detachable tablets, continue to grow for the most part. The other product category is slate tablets (those lacking this keyboard option), which saw shipments peak in 2014 and is now in a steep decline that IDC believes will continue throughout the forecast period.
"A long-term threat to the overall PC market lies in how the market ultimately settles on the detachable versus convertible debate," says Linn Huang, research director, devices and displays at IDC. "To date, detachable shipments have dwarfed those of convertibles, but growth of the former has slowed a bit."
IDC reveals at the same time that this roller-coaster of tablet growth, peak and decline was taking place, the personal computer market was experiencing one of the worst declines in the market's history. Fast forward to 1Q17 and traditional PCs have returned to growth, albeit relatively flat growth, for the first time since 1Q12, it says.
According to Deloitte Africa's 16th edition of Technology, Media and Telecommunications Predictions, 2017 will see tablet sales decline to less than 160 million units, suggesting we have passed the peak demand for these devices.
"Global tablet sales will be down by approximately 10% from the 182 million units sold in 2016. While the numbers vary by country, in terms of the preferred devices for various activities, there are three consumer devices that are at present leading tablets by a large margin: TVs, smartphones and computers," reveals the study.
TrendForce believes demand for tablets will continue to be curtailed by the increasing consumer preference for large smartphones, with annual tablet shipments worldwide posting a decline for 2016, dropping 6.6% to 157.4 million units.
"Together, major tablet brands posted a marginal decline in their total shipments for 2016," says Anita Wang, TrendForce notebook analyst. "Chief shipment contributors included Apple and Amazon. The former enjoyed strong iPad sales in the fourth-quarter busy season, and the later nearly doubled its annual shipments. Other brands such as Huawei, Lenovo and Acer also expanded their shipments despite market headwinds."
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