Global Tablet Shipments to Overtake PCs by 2015, IDC Says

Photographer: SeongJoon Cho/Bloomberg

Much of the gain for tablets is coming from more affordable machines powered by Google Inc.’s Android operating system. Close

Much of the gain for tablets is coming from more affordable machines powered by Google... Read More

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Photographer: SeongJoon Cho/Bloomberg

Much of the gain for tablets is coming from more affordable machines powered by Google Inc.’s Android operating system.

Global shipments of tablets will eclipse personal computers in 2015, as consumers flock to lower-priced and smaller alternatives to Apple Inc. (AAPL)’s iPad, market researcher IDC said.

Tablet shipments are projected to grow 45 percent from this year to reach 332.4 million in 2015, compared with an estimated 322.7 million for PCs, according to Framingham, Massachusetts-based IDC. PC shipments may decline 7.8 percent this year, the worst annual drop on record, the researcher said, a revision from its prior projection for a 1.3 percent decrease.

More portable, affordable and backed by hundreds of thousands of applications, tablets are replacing PCs as consumers’ main tool for checking e-mail, browsing websites and accessing music and movies. In the three years since Apple introduced the iPad, cheaper tablets running Google Inc. (GOOG)’s Android software have emerged to fuel faster growth.

“For many consumers, a tablet is a simple and elegant solution for core use cases that were previously addressed by the PC,” said Ryan Reith, an analyst at IDC.

IDC said the worldwide average selling price for tablets is seen falling 11 percent to $381 this year, and keep declining as more consumers choose smaller machines such as Apple’s iPad mini and competing devices made by companies including Samsung Electronics Co. (005930) and Amazon.com Inc. (AMZN)

‘Everyday Computing’

In 2017, 333 million PCs will be sold worldwide, while tablet shipments will reach 410 million, IDC said. IDC, which had previously forecast a “gradual increase in volume” for PCs next year, now projects that the market will contract 1.2 percent in 2014.

Consumers are pushing back upgrades to their PCs and companies are also holding off on spending on replacements for employees’ machines, IDC said. Tablet shipments will overtake laptops this year, the researcher said.

IDC said the forecasts include the impact of Windows 8, Microsoft Corp. (MSFT)’s newest operating system, which was introduced in October. The software was designed to be used on touch-screen devices and tablets, aiming to help PC makers compete with mobile devices increasingly capable of performing tasks once confined to PCs.

Hewlett-Packard Co. (HPQ) and Dell Inc. (DELL) are trying to expand their presence in the tablet market to counter slumping demand for traditional desktop and notebook PCs.

“Many users are realizing that everyday computing, such as accessing the Web, connecting to social media, sending e-mails, as well as using a variety of apps, doesn’t require a lot of computing power or local storage,” Loren Loverde, an analyst at IDC, said in the statement. “Instead, they are putting a premium on access from a variety of smaller devices with longer battery life, an instant-on function, and intuitive touch-centric interfaces.”

To contact the reporters on this story: Lisa Rapaport in New York at lrapaport1@bloomberg.net; Aaron Ricadela in San Francisco at aricadela@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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