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Connected device shipments to grow 14% annually thru 2016

Posted: 28 Sep 2012 ?? ?Print Version ?Bookmark and Share

Keywords:smart connected device market? tablet? smartphone? PC?

International Data Corp. (IDC) has revealed that the global market for smart connected devicesa combination of PCs, smartphones and tabletstopped 267.3 million units shipped in 2Q12, an increase of 27.4 per cent YoY and 2.8 per cent QoQ. On a revenue basis, the total was $131.5 billion worldwide, a 16.3 per cent YoY increase, but a 2.7 per cent QoQ decline.

In the U.S. market, it's clear that not only PCs but smart connected devices as a whole are facing a difficult time as both unit shipments and revenues declined on both YoY and QoQ basis. Unit shipments for 2Q12 fell 7.8 per cent sequentially and five per cent annually to just under 47.4 million units. Revenues for the combined categories slipped to $24.8 billion, a 10.3 per cent sequential and 8.6 per cent annual drop. The incredibly fast ramp for tablets and smartphones in the U.S. has clearly started to slow as overall macroeconomic conditions and a degree of saturation have begun to impact the market.

Looking forward, the CAGR from 2012-2016 will be 14 per cent for total smart connected devices. Smartphones will already represent over 59 per cent of smart connected device shipments in 2012 and will grow by nearly 15.8 per cent annually, approaching 63 per cent of device shipments in 2016. Tablets will see the fastest growth, rising from about 10 per cent share this year to 13 per cent by 2016, reducing PC share from 31 per cent in 2012 to 24 per cent in 2016. APAC leads in total PC and smartphone shipments, but tablet shipments have been relatively concentrated in more mature markets. EMEA is expected to gain share in tablets during the forecast while the Americas and APAC will increase volume but capture a smaller share of the global total.

"The recent shipment data clearly demonstrates that we have fully entered into the multi-device era, where individuals are buying and using multiple devices per person, most often with different combinations of operating systems. The implications of this development on application developers, device makers, Web service providers, businesses and even individuals, is profound," said Bob O'Donnell, program VP for clients and displays.

Near term, IDC believes the worldwide total unit shipments for smart connected devices will reach nearly 1.2 billion in 2012, a 27.4 per cent increase over 2011, and grow to 1.4 billion in 2013, a 19.2 per cent year-over-year increase. Looking over the longer horizon, IDC predicts the combined worldwide smart connected devices market will surpass 2 billion units in 2016. The APAC market is expected to top well over 860 million units by 2016, stretching its lead over other regions to have the most volume. The Americas should also experience continued growth, bringing its total device count to more than 600 million by 2016 and a CAGR of 13.7 per cent compared to 2012. EMEA is expected to grow at a slower pace relative to other regions, with volume totalling just more than 530 million by 2016 and a CAGR of 12.6 per cent. Amidst the growth, smartphones will make up the bulk of the volume, but tablets are expected to grow the fastest at more than 22 per cent CAGR from 2012-2016.

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