The tablet market is getting bigger. Everybody knows that but
IDC released its 2012 report
, nobody thought that it would report results like these.
According to the report, tablet shipments grew 78.4 percent
year over year in 2012 representing more than 128 million tablets
shipped. This year tablet shipments are projected to overtake
desktops and in 2014, they'll be bigger than the laptop
According to the report, tablets should capture 16 percent of
the smart device market by 2017-up 50 percent from the 2012 level
of 10.7 percent. That represents total revenue of $814 billion
with 83 percent of the market comprised of tablets and
smartphones-up from 2012 levels of 70.8 percent.
If you thought that was impressive, the report projects that
the smart device market will grow 174 percent between 2012 and
2017. All of this at the expense of the PC which will slide from
a 12.4 percent market share last year to 6 percent in 2017.
But your laptop isn't going to go the way of the desktop PC,
will it? IDC believes that its market share will drop from 16.8
percent to 11 percent in 2017.
Bob O'Donnell, IDC Program Vice President for Clients and
Displays, says, "Consumers and business buyers are now starting
to see smartphones, tablets, and PCs as a single continuum of
connected devices separated primarily by screen size."
And what about the Samsung versus Apple (NASDAQ:
) battle? IDC reports that Apple gained ground on rival Samsung
taking 20.3 percent unit shipment share versus Samsung's 21.2
percent. In terms of revenue, Apple had a 30.7 share while
Samsung had 20.4 percent.
What does all of this mean for the PC market? It's not good
news for companies like Hewlett-Packard (NYSE:
). Microsoft (NASDAQ:
) wants to believe that it's transforming into a company ready to
capitalize on the mobile market, but so far there's very little
evidence of that. Its Surface Tablet, Windows phones, and Windows
8 operating system aren't making significant inroads making the
company ask what's next.
Of course Dell (NASDAQ:
) won't be publishing the study results on its website any time
soon but if there's any good news, Dell is likely to die off in
the hands of Blackstone (NYSE:
), far away from retail investors if the PC does die off.
But this report is great news for other tech titans.
Despite ACI Research CEO Edward Zabitsky reiterating his $274
price target on Apple this week, the other 45 analysts are more
confident in the company's ability to continue being a leader in
Other companies feeling good about the IDC report include
), Verizon (NYSE:
), Google (NASDAQ:
), Intel (NASDAQ:
cell tower stocks
like American Tower (NYSE:
), and companies like Facebook (NASDAQ:
) that are quickly learning how to monetize mobile.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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