Tablets and smartphone shipment will continue to drive growth in 2013, according to IDC, which expects tablet shipment to surpass total PC shipment (desktop plus portable PCs) in Q4. The worldwide smart connected device market, comprising PCs, tablets, and smartphones, is forecast to grow 27.8 percent year over year in 2013, slightly lower than the 30.3 percent growth in 2012.
PCs shipment is still expected to be greater than tablet shipment for the full year, but IDC forecasts tablet shipments will surpass total PC shipments on an annual basis by the end of 2015. Smartphones will continue to ship in high volumes, surpassing 1.4 billion units in 2015 and accounting for 69 percent of all smart connected device shipments worldwide.
In terms of shipment value, the worldwide smart connected device market will again exhibit double-digit year-over-year growth of 10.6 percent in 2013, but this growth will gradually slow to just 3.1 percent in 2017. The tapering revenue forecast reflects the increasing impact of low-cost smartphones and the white box tablet market.
One billion smartphones are expected to be shipped this year, helping the global mobile phone market to rebound from just 1.2 percent growth in 2012 to 7.3, percent in 2013, according to IDCWorldwide Quarterly Mobile Phone Tracker.
The overall mobile phone market is growing faster than previously forecast thanks to a stronger-than-expected first half of the year driven by strong gains in emerging markets and the sub-US$200 smartphone segment. IDC previously projected 5.8 percent growth for the year. Vendors are now forecast to ship more than 1.8 billion mobile phones this year, growing to over 2.3 billion mobile phones in 2017.
Worldwide smartphone shipment is forecast to grow 40.0 percent year over year to more than one billion units this year. High smartphone growth is the result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets, as well as a growing array of sub-US$200 smartphones. Total smartphone shipment is forecast to reach 1.7 billion units in 2017.
Vendors shipped a total of 432.1 million mobile phones in Q2 compared to 407.7 million units in the corresponding quarter of 2012. The Q2 total was also slightly higher than the 428.8 million units shipped in Q1.
The growth in the mobile phone market was partly driven by vendors from outside the Top 5 who experienced torrid shipment growth that outpaced the overall market. Several vendors, including Alcatel and Huawei, had high double- and triple-digit growth rates in Q2 for their Android-based offerings shipped to high-growth countries such as China and India. These vendors from outside the Top 5 accounted for 44.8 percent of the overall shipment volume, up from 42.2 percent in the same quarter one year ago.
The PC market slowdown continued in Q2 with Asia/Pacific (excluding Japan) dropping one percent last quarter and 11 percent year-on-year in Q2 to reach 26.7 million units, according to IDC’s preliminary results.
Weak sell-in amid ongoing consumer distractions, such as phones and tablets, as well as a slowing economy affected the PC market performance in China, which pulled the entire region down. While consumer sentiment in the rest of region was also tepid, a higher-than-expected shipment for a large education notebook project in India helped to offset some of this decline.
“The second half of this year still faces a number of challenges such as economic and channel conditions in China as well as uncertainty around an education project in India,” said Handoko Andi, Research Manager at IDC Asia/Pacific. “It’s possible for the market to bottom out and recover by 2014 as technology evolves, but IDC confidence is low at the moment given all of the forces tugging at each other right now.”
The PC market in Malaysia dropped 18 percent in Q1, compared to the same period last year, according to IDC’s Asia/Pacific Quarterly PC Tracker. However, the 898,000 units sold in the quarter represented an 18 percent growth in sequential quarter.
A major delivery of mini-notebooks nationwide under the government’s Malaysian Communications and Multimedia Commission (MCMC) project was the only notable event in an otherwise lacklustre quarter. The education and enterprise segments both posted declines after flushing their budgets last quarter.
Retail spending on PCs was also curtailed by distractions from Chinese New Year festivities and the influx of smartphones and tablets into the market. However, the positive response to touch-based notebooks in retail was a notable silver lining in a gloomy retail climate.
The market for printing devices in the Philippines grew by an astounding 34.5 percent in Q1, compared to the same period last year. This is a sharp contrast to overall Asia-Pacific region drop of 7.6 percent, the sixth consecutive quarter of year-on-year drop.
According to International Data Corporation’s (IDC) Quarterly Hardcopy Peripherals (HCP) Tracker, about 233,400 units of single and multifunction printers (MFP) and copiers were shipped in Q1 versus 174,000 units in Q1 of 2012.
Eight out of 10 were of inkjet technology while laser and serial dot matrix (SDM) accounted for the remaining 12.9 percent and 7.0 percent, respectively. Total market revenue hit an all-time high of US$48.2 million.
At Computex in Taipei last week, tablets and mobile devices took centrestage. ASUS, maker of the Google Nexus 7, even introduced a tablet starting from just US$129. It looks like these vendors are right on track to tap a burgeoning demand for smart devices.
According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, global shipments of smart connected devices (PCs, tablets, and smartphones) are expected to surpass 1.7 billion units by 2014 with roughly 1 billion units delivered to emerging markets.
Within the emerging markets, the BRIC countries — China, India, Brazil, and Russia — are expected to generate shipments of 662 million units with a shipment value of more than US$206 billion. More than 650 million units are forecast to be shipped to developed markets, with the US, UK, and Japan capturing more than 400 million units with a shipment value of US$204 billion.
The launch of new 3G data plans by all three Thai mobile operators will introduce broad changes to the competitive dynamics among mobile operators, particularly in how they deal with the mass market segment.
IDC issued this warning after a review of the price plans and potential market share of the three mobile operators after the release of their 3G service plans.
IDC believes the industry is set for a slew of promotional and pricing competitive pressures in the next six months, possibly resulting in significant churn among the customer base if one of the telco operators does not keep its defenses up.
IDC believes that IT vendors can leverage business opportunities created by China’s smart manufacturing policies, endeavours to consolidate relationships with governments and industry associations, and enhanced R&D innovation utilising 3rd Platform technologies (cloud computing, big data, social business, and mobility).
Smart manufacturing has been identified and supported by the Chinese government as the key field for further development. In line with this, the national ministries have released research that could drive the continuous construction of IT infrastructure in manufacturing enterprises. Next-generation technology architecture or 3rd platform has triggered clear demands from enterprise customers and created a thorough R&D ecosystem.
Since 2011, the Ministry of Industry and IT of PRC, along with the National Development and Reform Commission, have been releasing a series of research papers on smart manufacturing. IT service providers could identify potential business opportunities by analysing the subject directions and final approved lists.