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Internet-enabled CE market to surpass PC by 2013

Posted: 23 Aug 2011 ?? ?Print Version ?Bookmark and Share

Keywords:Internet-enabled? consumer electronics? connected home?

IHS Inc. has predicted that Internet willonce againchange the course of the electronics industry because by 2013, shipments for Internet-enabled consumer electronics (CE) devices will surge past PC shipments. TVs, video game consoles, Blu-ray players, set-top boxes, digital media adapters, media tablets and other CE devices will reach 503.6 million units in 2013, up from 161 million in 2010. In comparison, PC shipments during the same period will amount to?433.7 million, up from?345.4 million.

IHS also predicts that by 2015, shipments of Internet-enabled CE devices will top 780.8 million units, immensely crossing PC shipments of 479.1 million.

"These new figures are the latest evidence that the Internet is not just for PCs anymore," said Jordan Selburn, principal analyst for consumer platforms at IHS. "The Internet now is revolutionizing the CE business by delivering a range of products that can bring web-based content to homes. Increasingly, each Internet-enabled CE device is vying to become the center of what is known as the digital living room, aggregating content throughout the home and serving up movies, television programs, videos and music. In the future, consumers will be more likely to access the Internet through their TVs than via their PCs."

According to the report titled, "It's 2011Where's My Connected Home?," The 50 percent rise in the shipments of Internet-enabled CE devices will be led by the media tablet, which is projected to become the fastest-growing segment within the space and spurred by the massive success of Apple Inc.'s iPad.

This year, Internet-enabled CE device shipments are anticipated to reach 241.2 million units, up from 161 million units last year and 108.3 million units in 2009. After the 49 percent increase in 2009 and this year's growth, the market's expected expansion in 2012 of another 50 percent will mean three straight years of improvement at this magnitude.

The top Internet-enabled devices last year were game consoles, with shipments of 50.5 million units, and TVs, with 40 million. However, media tablets are set to grab the top spot in 2011 with projected shipments of 61.9 million, up a booming 214 percent from 19.7 million last year.

From virtually nonexistent levels just two years ago, media tablets will ship more than 300 million units by 2015, 15 times greater than in 2010, for a five-year CAGR of 73.3 percent. No other Internet-enabled device in the next four years will come close to that kind of growth, said IHS.

In particular, the media tablet appears to be the device that will pull customers into the era of the digitally connected home. It allows users to enjoy mediaand not just content stored locally on the device or for viewing on the included display. With the right hardware, for example, consumers also can push music from an iPad to an audio system, or drive video to a large-screen display. With other vendors beginning to support Apple's proprietary AirPlay standard, the media tablet will be one of the first devices to fully integrate into the connected home, IHS stated.

Aside from the media tablet, other Internet-enabled devices that will grow rapidly in the years to come are Blu-ray players and set-top boxes. In the case of Blu-ray players, expansion in the segment will be driven by the growing uptake of HD displays as well as the mandatory adoption of Internet capability. After media tablets, Blu-ray players will have the second-highest CAGR at 37.9 percent.

Set-top boxes offer features that cannot be duplicated by other systems such as obtaining content from multiple sources like VOD or 'catch up' TV, in addition to the content available from cable or satellite providers, likely making the device a long-term, high-value fixture.

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