Tablet shipments are expected to overtake notebook shipment
numbers by 2016, according to
Quarterly Mobile PC Shipment and Forecast Report.
Notebook shipments are expected to go from 208 million units
in 2012 to 393 million by 2017, and tablets are expected to go
from 121 million to 416 million along the same time period - a
243 percent increase for tablets, as compared to 89 percent in
Earlier this year, Morgan Stanley (NYSE:
the winners and losers of this development in a research report.
Below are some winners and losers in a tablet world.
First, a look at the winners.
Memory is a big winner in Morgan Stanley's bull case.
According to the analyst firm, a bullish tablet sector could
disrupt the memory-based NAND supply-demand balance, which is
already tight because of the rising smartphone and tablet
adoption rates. SanDisk Corporation (NASDAQ:
) is seen by Morgan Stanley as a stock that provides investors
with a favorable play in this direction.
Media is another sector that is poised to have a boom in a
tablet era. Morgan Stanley believes that tablets will be a "game
changer for content owners." This is likely to come through the
larger audience that would boost the window of opportunity for
advertisers, as well as the significant upside in content rental
activity. Magazines with a foothold in the digitized format are
also likely media winners.
Cable and satellite providers, such as Dish Networks (NASDAQ:
), Comcast (NASDAQ:
), DirecTV (NASDAQ:
) and Cablevision Systems (NYSE:
) are another sector of winners on the back of the tablet
bandwagon. Morgan Stanley believes that this will come through
the enhanced video experience and rising broadband consumption
that an expanding tablet market will usher in.
Not all industries will be happy in a tablet-heavy world.
Some hardware manufacturers, such as Hewlett Packard (NYSE:
) and Dell (NASDAQ:
) may be negatively impacted as the tablet market disrupts the PC
space. Shipments are likely to take a 5 percent haircut through
2013, according to Morgan Stanley.
Printing is another industry that Morgan Stanley anticipates
will take a sizable hit from tablets. The analyst firm expects
this disruption to be structural, in the form of a reduction in
enterprise and commercial printing. The expected haircut is a 2
percent to 5 percent reduction in printer supplies revenue
through 2012 alone, said Morgan Stanley. Lexmark (NYSE:
) and Hewlett Packard are likely to feel some of that pain.
Gaming hardware may also see increased downside from a shift
to tablets, according to Morgan Stanley. Over the next two years,
the firm expects to see a 6 percent to 8 percent haircut in
shipments for the sector. Potentially challenged companies,
according to the analyst firm, include Nintendo and Sony (NYSE:
Tablet-related opportunities and threats go beyond the
above-mentioned heat maps. Anything fitting the description of
platforms will be placed under the microscope in the next several
years. The making or breaking of companies will come based on how
quickly they adapt.
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.