Why tablet growth will offset slowing personal computer sales

Market Realist

Why the world tech sector is poised for major growth in 2014 (Part 3 of 5)

(Continued from Part 2)

The personal computer market slowdown will be offset by tablet growth

In the previous articles of this series, we discussed the technology sector spending outlook for 2014 and the smartphone market’s trend shift towards cheaper products. As well as smartphones, the device market also consists of PCs, tablets, and ultramobile devices.

According to Gartner’s latest report, “The number of traditional PC users is contracting to a set of fewer, albeit more engaged, users. In general, consumers are opting to buy premium ultramobiles as notebook replacements and purchasing tablets as additional devices. As market power shifts to the buyer, and key product innovations become ubiquitous, product pricing is becoming the primary differentiator.”

The tablet market could overtake the PC market by 2015

According to another report by Gartner, the PC market—which includes desktops and notebooks—could decline from 299 million shipments in 2013 to 268 million shipments in 2015, while the tablet market could grow from 180 million in 2013 to 325 million in 2015. This means the tablet market could overtake the PC market by 2015 and offset the PC market decline.

Mikako Kitagawa, principal analyst at Gartner, mentioned, “Strong growth in tablets continued to negatively impact PC growth in emerging markets. In emerging markets, the first connected device for consumers is most likely a smartphone, and their first computing device is a tablet. As a result, the adoption of PCs in emerging markets will be slower as consumers skip PCs for tablets.”

Lenovo leads the PC market while Android leads the tablet market

According to Gartner, in 2013, Lenovo emerged as the largest PC player, with a market share of 17%, overtaking HP (HPQ). Dell (DELL), Acer, and Asus maintained their third, fourth, and fifth positions, respectively, in this market. According to another Gartner report, Google’s (GOOG) Android emerged as the winner in the tablet operating system market in 2013, with a market share of 62%, overtaking Apple’s (AAPL) iOS. Microsoft (MSFT) maintained its third position in this market.

Continue to Part 4

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