This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Let The Tablet Hunger Games Begin!

By Xavier Brenner

The PC is dead. Long live the tablet! Well, not quite.

According to a new forecast by the International Data Corporation ( IDC) Worldwide Quarterly Tablet Tracker, tablet shipments are expected to exceed those of portable PCs by year end. And by 2015, tablet shipments should surpass both portable and desktop computers.

Tablet Shipments

The dethronement of PCs seems well underway, much to the chagrin of Dell (DELL) and Hewlett Packard (HPQ). While PC sales have been in a death spiral, tablet shipments are expected to grow 58.7% year-over-year in 2013, reaching 229.3 million units, up from 144.5 million units last year, according to IDC.

As Ryan Reith, Program Manager for IDC's Mobility Trackers, puts it:

What started as a sign of tough economic times has quickly shifted to a change in the global computing paradigm with mobile being the primary benefactor. Tablets surpassing portables in 2013, and total PCs in 2015, marks a significant change in consumer attitudes about compute devices and the applications and ecosystems that power them.

Yet companies in the tablet game, be it hardware or the devices operating software—Apple (AAPL), Google (GOOG), and Microsoft (MSFT), aren’t necessarily going to have an easy time of it.

For one thing, the field is getting crowded and that’s placing downward pressure on pricing. According to IDC’s data, worldwide average selling price for tablets is expected to decline 10.8% to $381.

Also, consumers seem to be taking the less-is-more approach when shopping for tablets. There is a big preference for smaller screen devices. The sub 8-inch category, led by Apple’s iPad mini, has overtaken the larger-sized segment in terms of total shipments. Check out this interesting graphic from Statista:

Tablet Size

Meanwhile, Bloomberg has a piece out today that Microsoft is lowering the price of its Windows software for small tablets, suggesting that it’s struggling to find its place in the new era. (The company’s Surface tablet also hasn't met expectations. )

Microsoft has been trying with mixed success to get manufacturers to adopt Windows RT, a version of its flagship software for tablets. According to Bloomberg, the price cuts affect Windows RT for small-sized tablets. Apple and Google have huge leads in the $64 billion tablet market.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.94 1.00%
FB $101.95 2.40%
GOOG $697.63 2.90%
TSLA $153.91 3.80%
YHOO $27.54 2.70%


Chart of I:DJI
DOW 16,133.20 +118.82 0.74%
S&P 500 1,870.00 +17.79 0.96%
NASDAQ 4,340.1090 +71.3460 1.67%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs