Tablet Shipments Fall for the First Time

The tablet market, after enjoying years of strong growth, appears to be slowing down.

Global shipments of tablet computers declined for the first time in the first quarter of this year, according to new data from NPD DisplaySearch. In Q1, 56 million tablets were shipped around the world, down from around 59 million units a year earlier. Many brands have felt the effects, reporting weak tablet shipment results in Q1.

The decline can be partly attributed to new product launch delays, along with falling demand for smaller tablets, or those in the 7-inch range, in China and other emerging regions, the firm said. In China, many inexpensive non-brand-name devices have experienced 'lower-than expected' shipment growth this year. Even most major tablet brands have reduced their 2014 business plans.

'There is a risk that the replacement cycle for tablet PCs will lengthen beyond the one- to two-year range unless brands can develop more attractive usage scenarios,' NPD analyst Hisakazu Torii said in a statement.

NPD has, consequently, lowered its tablet shipment forecast for 2014. The research firm now predicts that tablet shipments will grow just 14 percent to 285 million units this year, down from its previous forecast of 315 million. By 2017, the rate of annual growth will 'slow to single digits.'

The company expects competition from smartphones with screens larger than 5.5 inches to chip away at demand for 7 to 7.9-inch tablets through 2018. Major tablet brands will likely fight back, however, by moving to larger sizes.

Shipments of 8 to 10.9-inch tablets will overtake 7 to 7.9-inch tablets by 2018, NPD said, while 11-inch and larger tablets will exceed 10 percent of the market.

'The increase in screen sizes will help increase tablet PC revenues,' Torii said.

The news comes shortly after Gartner predicted an unexpected upswing in sales of PCs, due in part to the demise of XP, which will require a number of businesses to upgrade their PCs.

For more, see PCMag's review of the 12-inch Microsoft Surface Pro 3, and our roundup of the 10 Best Tablets.

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