IDC Increases Media Tablet Forecast, Expects New Products and Price Points to Drive Strong Shipment Growth Through 2016

  IDC Increases Media Tablet Forecast, Expects New Products and Price Points
  to Drive Strong Shipment Growth Through 2016

Business Wire

FRAMINGHAM, Mass. -- June 14, 2012

Expectations of strong demand for media tablets in the second half of 2012 has
led International Data Corporation (IDC) to increase its forecast for the
worldwide market to 107.4 million units for the year, up from its previous
forecast of 106.1 million units. In the latest forecast update of the
Worldwide Quarterly Media Tablet and eReader Tracker, IDC also revised upward
its 2013 forecast number from 137.4 million units to 142.8 million units. And
by 2016 worldwide shipments should reach 222.1 million units.

"Demand for media tablets remains robust, and we see an increasing interest in
the category from the commercial side," said Tom Mainelli, research director,
Mobile Connected Devices at IDC. "We expect pending new products from major
players, increasingly affordable mainstream devices, and a huge marketing
blitz from Microsoft around Windows 8 to drive increased consumer interest in
the category through the end of the year."

In addition to increasing the unit totals for 2012, IDC also updated its
forecast to shift a larger percentage of future units toward iOS and away from
Android. IDC now expects iOS to grow its share of the market in 2012 to 62.5%,
up from 58.2% in 2011. Meanwhile Android's share will slip from 38.7% in 2011
to 36.5% in 2012. IDC expects third-place Blackberry to slip from 1.7% to 1%.

"After a very strong launch of new products in March, Apple's iPad shows few
signs of slowing down," Mainelli added. "The addition of the Retina Display
and 4G capabilities to the third-generation products clearly enticed many
current owners to upgrade. And Apple's decision to keep two iPad 2s in the
market at lower prices—moving the entry-level price down to $399—seems to be
paying off as well. If Apple launches a sub-$300, 7-inch product into the
market later this year as rumored, we expect the company’s grip on this market
to become even stronger."

A graphic illustrating the relative market shares of the leading media tablet
operating systems in 2010, 2011, 2012, and 2016 is available at IDC.com. The
chart is intended for public use in online news articles and social media.
Instructions on how to embed this graphic can be found by viewing this press
release on IDC.com.

IDC is not currently forecasting Windows 8 or Windows RT tablets in its Media
Tablet Tracker (they appear in the PC Tracker forecast). However, beginning
next quarter, IDC will institute several taxonomy changes that will bring all
tablet slates, regardless of OS or processor type, into the Media Tablet
Tracker.

"We’re looking forward to rolling the Windows-based tablets into our tablet
forecast in order to give customers a complete view of tablet slates all in
one place," Mainelli commented. "Our current thinking, based upon early
pricing expectations for these products, is that Windows-based tablets will be
largely additive to our existing media tablet market forecast. We don't expect
Windows-based tablets to necessarily take share from Apple and Android, but
will grow the overall tablet market."

While IDC increased its forecast for media tablets in 2012, the firm
significantly lowered its forecast for eReaders in 2012. After a disappointing
first quarter, and strong indications that low-priced tablets are
significantly impacting demand, IDC now expects 2012 shipments to be stable at
around 28 million units, down slightly from the 28.2 million units that
shipped in 2011.

About IDC

International Data Corporation (IDC) is the premier global provider of market
intelligence, advisory services, and events for the information technology,
telecommunications, and consumer technology markets. IDC helps IT
professionals, business executives, and the investment community to make
fact-based decisions on technology purchases and business strategy. More than
1,000 IDC analysts provide global, regional, and local expertise on technology
and industry opportunities and trends in over 110 countries. For more than 48
years, IDC has provided strategic insights to help our clients achieve their
key business objectives. IDC is a subsidiary of IDG, the world's leading
technology media, research, and events company. You can learn more about IDC
by visiting www.idc.com.

Contact:

IDC
Tom Mainelli, 650-350-6450
tmainelli@idc.com
or
Loren Loverde, 650-350-6423
lloverde@idc.com
or
Kathy Nagamine, 650-350-6423
knagamine@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com
 
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