IHS SAYS SMALLER IPAD TO HELP DOUBLE 7-INCH MEDIA TABLET MARKET

(The following is a reformatted version of a press release
issued by iSuppli and received via electronic mail. The release
was confirmed by the sender.) 
Smaller iPad to Contribute to Doubling of 7-Inch Media Tablet
Market in 2012 and 2013 
El Segundo, Calif. (Oct. 23, 2012)--The arrival of the smaller
iPad will turbocharge the market for 7-inch tablets, helping the
market to approximately double in 2012 and 2013, according to
the IHS iSuppli Display Materials & Systems Service at
information and analytics provider IHS (NYSE: IHS). 
Global sales of tablets with displays in the 7-inch size range
are expected to boom by about 100 percent this year to 34
million units, up from 17 million in 2011, as presented in the
figure attached. Sales will nearly double again in 2013, rising
96 percent to 67 million. 
“Just as Apple has dominated the market for 9.7-inch tablets
with its iPad, iPad 2 and new iPad models, the company is poised
to rule the market for 7.x-inch products, driving rapid growth
of the segment in 2012 and 2013,” said Rhoda Alexander,
director, tablet and monitor research for IHS. “The battle in
the 7-inch space is highly spirited, with most of the other
leading vendors already offering price-competitive products in
this size range. IHS predicts Apple will successfully position
the smaller iPad as a device that will be attractive and easy to
adopt for both new and returning customers. This will spur rapid
sales growth and provide tough competition for other companies
contending in this size range.” 
Smaller tablets gain bigger market share 
The 7-inch size range, AKA 7.x inches, will account for 28
percent of all tablets in 2012, up from 24 percent in 2011. In
2013, the 7.x-inch share will rise to 33 percent. 
IHS iSuppli regards its 2013 forecast for 7.x-inch tablet sales
as conservative, with some factors potentially boosting the
market to higher levels for the year. 
“The major factor limiting shipments of the smaller iPad will
not be demand, but a combination of production challenges and
potential component supply issues,” Alexander said. “Reported
production difficulties point to the likelihood that Apple is
once again pushing design boundaries with the new product.
Sources also indicate there have been some supply issues for
parts used in the Apple Lightning connector and in the display.
If Apple can resolve these issues rapidly, 2013 shipments and
sales may exceed the current forecast dramatically.” 
Apple’s capability to meet all demand and launch the product in
all global regions promptly will be a major factor determining
its near-term sales level. 
“IHS expects the 7.x-inch product to be particularly popular in
Asia, where interest in a smaller version of the iPad has been
strong,” Alexander said. “If Apple has sufficient supply to meet
demand in Asia following product launch, then the 2013 sales
could be off the charts.” 
Competitive response
Apple tablet competitors that are using the Android operating
system until now have gravitated to the 7.x-inch size as a way
to find a competitive niche compared to the bigger 9.7-inch
iPad. With the anticipated arrival of the smaller iPad, these
companies are increasingly looking at the 8.x-inch and larger
categories as they seek to find new avenues of differentiation
compared to Apple. 
By contrast, new tablets based on Microsoft Corp.’s Windows RT
and Windows 8 operating systems are likely to focus on products
with 10-inch-and-larger displays, although there may be some
offerings with displays as small as 8.x-inch. 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: +1 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
(bjh) NY 
#<873920.660640.3.1.0.0.76>#
 
 
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