IDC: Smart Connected Device Shipments in Emerging Markets to surpass 1 billion by 2014

IDC Worldwide Quarterly Smart Connected Device Tracker, predicts that the global shipments of smart connected devices (PCs, tablets, and smartphones) are expected to surpass 1.7 billion units by 2014 with roughly one billion units delivered to emerging markets.

The report suggest that emerging markets (BRIC countries) such as China, India, Brazil, and Russia – are expected to generate shipments of 662 million units with a shipment value of more than US$206 billion. More than 650 million units are forecast to be shipped to developed markets, with the US, UK, and Japan capturing more than 400 million units with a shipment value of US$204 billion, according to the report.

The report highlights that the smart connected device market is mainly driven by demands for smartphones and tablet in emerging markets while PC continues to lag.

“In terms of product categories, the smart connected device market will be largely driven by the growing demand for smartphones and tablets in both emerging and developed markets. Of the 1.7 billion units forecast to be shipped in 2014, more than 1.4 billion units are expected to be smartphones and tablets, representing more than US$500 billion in value. PCs, on the other hand, will be a comparatively small market with just over 300 million units shipped and a shipment value of less than US$200 billion,” according to the report.


“It is evident that smartphones and tablets have successfully established a strong presence as the second screen, owing to the transformation in usage patterns, device affordability, and, most of all, the comfort of a mobile and digital lifestyle,” said Megha Saini, Research Analyst with IDC’s Worldwide Smart Connected Device Tracker. “Vendors and OEMs need to be aware of the different usage patterns so as to drive product innovation that suits the tangible needs of their digital consumers.”

The report also points to the decreasing sale price of smartphone and tablet due to the global expansion of the smartphone market.

“With the rise in global smartphone and tablet shipments, the ASP of these mobile computing devices is steadily decreasing. Tablet ASPs plummeted 19% on year in 2012 to US$426, down from US$525 in 2011. Smartphone ASPs fell 8.2% on year to US$407 in 2012, down from US$443 in 2011. This pattern of decreasing price points is most prominent in emerging countries where IDC expects sub-US$300 smartphones and sub-US$350 tablets to drive huge shipments in 2014 and beyond. In developed markets, smartphones and tablets will continue to generate higher ASPs of US$490 and US$370, respectively, in 2014,” the report explains.

“Smartphone and tablet prices are now less prohibitive to first-time buyers in emerging markets,” said Bob O’Donnell, Program Vice President, Clients and Displays. “Although the double-digit growth of smartphones and tablets in emerging countries is a mouthwatering prospect, the low selling price also means that vendors will face huge struggles to meet the demands profitably. Given the competitive price points for cheaper smartphones and tablets, this price war is a race to the bottom and it’s not at all clear that this low-end market offers sustainable profits to smartphone and tablet vendors.”

IDC: Smart connected device shipments by region and category, 2012-2017 (m units)
Region Product category 2012 2013(f) 2017(f)
Developed Markets Desktop 55.3 49.5 43.2
Portable PC 94.1 83.5 84.2
Tablet 90.8 131.9 219.6
Smartphone 296.5 338.9 465.6
Total 536.8 603.8 812.8
Emerging Markets Desktop 92.9 84.9 80.6
Portable PC 106.8 103.8 125.2
Tablet 53.6 97.3 190.6
Smartphone 425.9 619.8 1,113.1
Total 679.2 906 1,509.5
Worldwide Desktop 148.2 134.4 123.8
Portable PC 200.9 187.4 209.5
Tablet 144.4 229.3 410.3
Smartphone 722.4 958.7 1,578.7
Total 1,216.1 1,509.9 2,322.4

Source: IDC, compiled by Digitimes, May 2013

IDC: Smart connected device market by product category, shipments, and market Share, 2012, 2017 (m units)
Product category 2012 shipments 2012 market share 2017 shipments(f) 2017 market share(f) 2012-2017 CAGR
Desktop 148.2 12.2% 123.8 5.3% -3.5%
Portable PC 200.9 16.5% 209.5 9% 0.8%
Tablet 144.4 11.9% 410.3 17.7% 23.2%
Smartphone 722.4 59.4% 1,578.7 68% 16.9%
Total 1,216.1 100% 2,322.4 100% 13.8%

Source: IDC, compiled by Digitimes, May 2013

Posted by | Posted at June 14, 2013 09:54 | Tags: , , ,
Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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