Tablet boom to erode prices

IDC predicts 2011 will see shipments skyrocket and ASPs plummet as competition hots up

Tablet shipments in EMEA are forecast to grow almost fourfold this year as the big PC vendors and telcos clamour for a piece of the action.

But unit prices will "fall significantly" as routes to market broaden, according to research from IDC. The market watcher reports that nearly six million tablets were shipped in EMEA last year, about five in six of which were Apple iPads (pictured).

IDC expects regional tablet shipments to grow to more than 22 million in 2011.

In the past, retail channels provided the bulk of total sales, but IDC says the carrier subsidy model will likely come to bear on the tablet space this year. Apple is expected to maintain its dominance of the space, but the analyst noted that manufacturers such as Asus and Acer are expected to dive into the tablet arena. Smaller players, including Birmingham-based Elonex, will also make inroads, said IDC.

However, the heightened competition is forecast to lead to price wars, driving average selling prices down. This, in turn, will fuel sales growth and speed up renewal cycles.

IDC projects that almost 60 million tablets will be shipped annually across EMEA by 2015. The market watcher asserts that the devices will not supplant smartphones or notebooks, but rather will become "a third major value proposition".

The consumer space is set to remain the sweet spot for tablet vendors, but IDC reports there is "increasing interest from businesses". Windows compatibility could help fuel adoption, said the analyst, and tablets' success as a commercial proposition could hinge on vendors' development of vertically targeted platforms and applications. The cost of supporting and managing the devices could also be an important consideration for enterprise IT chiefs.

Karine Paoli, IDC's EMEA associate vice president for client computing, said: "While tablet form factors have been on the market for some time, targeted at business users or niche segments, the emergence of new media tablets introduced a new product category and new usage scenarios which will drive mobile device adoption and multi-equipment further and represents a major market expansion opportunity.

"User experience will, however, be key in customers' choice and, while a fierce battle is expected between vendors, the battle will clearly also be placed around the OS."