Prices, form factors in spotlight while PC mkt shrinks

MUMBAI, INDIA: Worldwide combined shipments of devices (PCs, tablets and mobile phones) are projected to reach 2.32 billion units in 2013, a 4.5 per cent increase from 2012, according to Gartner, Inc. The market is being driven by a shift to lower-priced devices in nearly all device categories.

Worldwide shipments of traditional PCs (desk-based and notebook) are forecast to total 303 million units in 2013, an 11.2 per cent decline from 2012, and the PC market, including ultramobiles, is forecast to decline 8.4 per cent in 2013. Mobile phone shipments are projected to grow 3.7 per cent, with volume of more than 1.8 billion units.

Tablet shipments are expected to grow 42.7 per cent this year, with shipments reaching 184 million units. Premium tablets are faced with continued price decline in the seven-inch form factor as a larger number of consumers prefer smaller form factors when it comes to content consumption. A recent consumer study that Gartner conducted in Brazil, China, France, Germany, Italy, the U.K., the U.S. and Japan confirmed Gartner's long-standing assumption that smaller is better when it comes to consumer tablets. The survey showed that the average screen sizes of the tablets in use across the countries ranged from 8.3 inches to 9.5 inches. Forty-seven per cent of the 21,500 consumers surveyed owned a tablet that was eight inches or less.

As the third-quarter earnings season comes to an end, it is clear that our caution for 2013 was well placed as vendors are transitioning their portfolios to the new Intel processors Bay Trail and Haswell, as well as rolling out products that are based on the Windows 8.1 release.

"While consumers will be bombarded with ads for the new ultramobile devices, we expect their attention to be grabbed but not necessarily their money," said Carolina Milanesi, research vice president at Gartner. "Continuing on the trend we saw last year, we expect this holiday season to be all about smaller tablets as even the long-term holiday favorite - the smartphone - loses its appeal."