Tablet shipments fall for the first time ever as markets begin to saturate

[Shawn Knight]

Growth in the post-PC era may finally be slowing down if the latest report from NPD DisplaySearch is any indication. The analytics firm found that tablet shipments during the first quarter dropped year-over-year for the first time ever.

In the report, NPD found that several brands realized weak tablet sales during the first three months of this year. At least some of the weaker sales were blamed on delayed product launches but we also must take into consideration the possibility of market saturation.

The latter scenario is evident in the chart above from NPD. Specifically, take a look at the huge jump in tablet shipments from 2012 to 2013 and compare that looking ahead. The growth rate is expected to be just 14 percent this year and by 2017, NPD believes it'll be in the single digits.

Larger-screen smartphones, collectively referred to as phablets, are also cannibalizing the smaller tablet market. One change that most expect to see over the coming years is a shift toward tablets with larger screens like Microsoft's Surface Pro 3. NPD predicts shipments of larger tablets will overtake smaller ones by 2018.

NPD still expects overall growth for 2014 but has lowered its forecast from 315 million tablets shipped to 285 million.

Truth be told, hardware makers don't really have too much to worry about until we start to see annual shipment drops. As long as growth is happening, all is well in tablet land.

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https://www.techspot.com/news/57364-tablet-shipments-fall-for-the-first-time-ever-as-markets-begin-to-saturate.html

 

[oldikes]

I think phones are going to find a sweetspot size and tablets are going to become a smaller niche device, if they'll have a market at all...honestly even at this point in time I think they are pointless. especially with the rising popularity of convertible laptops again, which have always been vastly superior to tablets to begin with.

 

[Guest]

I think phones are going to find a sweetspot size and tablets are going to become a smaller niche device, if they'll have a market at all...honestly even at this point in time I think they are pointless. especially with the rising popularity of convertible laptops again, which have always been vastly superior to tablets to begin with.

I agree, I'm perfectly content with my S3 or even a Note but I have no need for a bigger screen (tablet) when my laptop is faster, can actually do more than one thing at once, can run full productivity suites, and can surf the "real web" in all its flash/java/silverlight glory without having to hunt for apps.

 

[TraceAbsence]

People are beginning to realize that true portability comes only in smart phone sizes. Tablets never come out of your bag (which you need) easily; they are cumbersome and impossible to hold with one hand. Then why not just get an ultrabook or a Macbook (what I use) which is light enough to carry around in your backpack? Not to mention much more powerful. If I want portability, I'll go for a Galaxy 5, a nexus 5 or better yet, an iPhone 6 come September.

 

[TraceAbsence]

I think phones are going to find a sweetspot size and tablets are going to become a smaller niche device, if they'll have a market at all...honestly even at this point in time I think they are pointless. especially with the rising popularity of convertible laptops again, which have always been vastly superior to tablets to begin with.

A few months ago I bought an iPad Mini. After a couple of weeks I just couldn't deal with it anymore, having to constantly take it out of my bag to check for anything. I sold it. My iPod Touch does a better job. I'll wait for iPhone 6.

 

[TraceAbsence]

I think phones are going to find a sweetspot size and tablets are going to become a smaller niche device, if they'll have a market at all...honestly even at this point in time I think they are pointless. especially with the rising popularity of convertible laptops again, which have always been vastly superior to tablets to begin with.

I agree, I'm perfectly content with my S3 or even a Note but I have no need for a bigger screen (tablet) when my laptop is faster, can actually do more than one thing at once, can run full productivity suites, and can surf the "real web" in all its flash/java/silverlight glory without having to hunt for apps.

Couldn't have said it better myself.

 

[Teko03]

This is certainly good news for the future of Microsoft. If they get the hybrid functionality of the Desktop and Modern UI right with Windows 9 the future of hybrids and the Surface line would be bright. Maybe even Windows Phone as well with universal app capabilities.

 

[samirsshah]

Tablet market is a duopoly of Apple and Samsung. Others have come in but they have problems like resolution (very important for reading), distribution in various countries and many other problems related to critical mass. Samsung and Apple have kept prices high and until their prices come down by at least $100 tablet market may remain flat or even decrease.

 

[Skidmarksdeluxe]

What goes up must come down. Smartphones have become integral to a lot of people but tablets not so much.

 

[at0mic_Mike]

The quality of the manufacturer such as samsung or asus also keeps sales down because they seem to last a while.

 

[Nobina]

Yes! I guess some people finally realized that tablets are useless toys compared to smartphones and PCs.

 

[Guest]

Not surprising that tablets became over-saturated, I was at a Verizon store getting a new phone and the salesperson was trying their hardest to sell me a free tablet.