Wed, Sep 17, 2014 page14

• Global tablet sales to slow: MIC

  SATURATION: Global tablet market saturation is causing declining sales, while weakening corporate demand is set to slow growth of global PC shipments next year

  • By Kevin Chen / Staff reporter
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  Market researcher Market Intelligence and Consulting Institute (MIC, 產業情報研究所) yesterday forecast global tablet computer shipments would grow at a slower pace next year as major players face a fast-saturating tablet market.

  In the meantime, the Taipei-based researcher predicted that the global PC market would see a bigger annual decline in shipments next year than this year because of potentially weak growth in corporate demand.

  MIC made the forecast at a Taipei forum, where analysts shared their thoughts about next year’s prospects for such technology industries as tablets, PCs, semiconductors, flat panels and telecommunications.

  The government-funded research house said it now expects global shipments of tablets to reach 293 million units next year, up 9.2 percent from this year.

  The pace of increase will be slower than this year, during which shipments are likely to grow by 12.4 percent to 268 million units from last year, the researcher said in a statement.

  “The global tablet market is showing clear signs of losing steam this year as ‘white-box’ vendors face limited room for further growth and the developed markets are maturing,” MIC said.

  White-box products are items that are similar to a brand-name devices, but are offered at a lower price.

  The rise of larger smartphones and falling prices of tablets sold by brand-name vendors have slowed down the high growth rate for white-box tablets seen in the past few years.

  On the other hand, major tablet brands also face headwinds in future in view of more low-priced products from other smaller and lesser-known vendors, MIC said.

  As for PCs, MIC said it now predicts that worldwide shipments would reach 295 million units, down 1.2 percent from the 299 million units estimated for this year.

  The shipment forecast for this year represents a minor contraction of 0.1 percent from last year.

  “Microsoft Corp’s ending its support for Windows XP and reducing royalties for new software have allowed the global PC market to perform better than expected for this year,” MIC senior manager Charles Chou (周士雄) said in the statement.

  However, after this year’s corporate PC refresh cycle, the global PC market is not expected to expand next year; rather, it is likely to contract at a faster pace than this year, Chou said.

  Since Apple Inc launched the iPad in 2010, tablets have been eating into PC sales, cutting the profits of long-time PC heavyweights such as Hewlett-Packard Co and Dell Inc, and prompting Microsoft to offer Windows operating systems for tablets and even launch its own Surface tablet to maintain profitability.

  However, the increasingly fierce competition between major tablet brand-names and white-box vendors, as well as the fast-saturating tablet market, have led shipments by Taiwanese makers to shrink by 16.9 percent to 95 million units this year from last year, according to MIC.
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