Thursday, December 5, 2013

Tablet Stats Update

A TabTimes executive summary

This continuously updated page reports the latest data and trends in the tablet industry and related ecosystems.
December 5, 3013

1. Tablet devices

Tablets are driving a wave of adoption more quickly than that of laptops and smartphones.

1.1. Tablet device ownership

More people than ever are discovering the benefits of tablets over conventional PCs and laptops.
American adults aged 18 and older who own a tablet
2010: 3%
2011: 8%
2012: 18%
2013: 34%
(source: Pew Internet & American Life Project report, June 2013)
American aged 8 to 64 who own a tablet
2012: 30%
2013: 44%
(source: Frank N. Magid Associates, June 2013)
American aged 12 to 64 who own a tablet
2013: 52%
2014: 64% (forecast)
(source: Frank N. Magid Associates, June 2013)
Physicians who own a tablet
2011: 30%
2012: 62%
2013: 72%
(source: Manhattan Research, April 2013)

1.2. Tablet device sales

1.2.1. Overall sales

In the first three months of 2013, a total of 49.2 million iPad, Samsung Galaxy Tab, Google Nexus, Kindle Fire, Microsoft Surface and other tablets shipped to retailers for sale. That’s more than all the tablet devices shipped in the entire first half of 2012. (source: IDC)
Tablet shipments
2012:  144.5 million
2013: 221 million (forecast); +53.5% vs. 2012
2014: 270 million (forecast); +22.2% vs. 2013
2017: 386 million (forecast)
(source: IDC, December 2013)
IDC says tablets unit sales will surpass portable PCs en 2013 and all PCs in 2015.
Gartner’s predictions are even higher: they forecast a 68% increase in tablet shipments in 2013 vs. 2012.
Cultural shifts in workplace devices through “bring-your-own-device” (BYOD) have also contributed to more tablet and other mobile device shipments, the reports noted.
Tablet shipments
2012:  113 million (actual)
2013: 195 million (est.)
2014: 285 million (forecast)
2015: 323 million (forecast)
2016: 358 million (forecast)
2017: 396 million (forecast)
(source: Canalys, November 2013)
Tablet sales
2013 vs. 2012: +38.9%
(Source: Gartner, July 2013)
2013: $72 billion
(Source: ABI research, June 2013)

1.2.2. Sales by manufacturer: Another bite out of Apple

Not all brands are expected to see sustained growth rates. Apple in particular may end up with fewer devices in the hands of consumers in the future.
Market share by manufacturer
Q3 2012
Apple: 40.2%
Samsung: 12.4%
Asus: 6.6%
Lenovo: 1.1%
Acer: 0.9%
Others: 38.8%
 
Q3 2013
Apple: 29.6%
Samsung: 20.4%
Asus: 7.4%
Lenovo: 4.8%
Acer: 2.5%
Others: 35.3%
(source: IDC)
OS market share in tablet unit sales in Q2 2013
Android: 53% (of which Samsung: 22%, Amazon: 5%; Lenovo: 4%; Acer: 4%; others: 23%)
Apple/iPad: 43%
(source: Canalys, August 2013)
OS market share in tablet unit sales
2012 (actual): Apple 58%, Android 40%, Microsoft 2%
2013 (estimate): Android 58%, Apple 38%, Microsoft 4%
2014 (forecast): Android 65%, Apple 30%, Microsoft 5%
2015 (forecast): Android 64%, Apple 29%, Microsoft 6%
2016 (forecast): Android 63%, Apple 28%, Microsoft 8%
2017 (forecast): Android 63%, Apple 27%, Microsoft 10%
(source: Canalys, November 2013)
OS market share in tablet unit sales
2012 (actual): Android 52%, iOS 45.6%, Microsoft 0.9%; Other: 1.4%
2013 (forecast): Android 60.8%, iOS 35%, Microsoft 3.4%; Other: 0.8%
2017 (forecast): Android 58.8%, iOS 30.6%, Microsoft 10.2%; Other: 0.4%
(source: IDC, December 2013)
Researchers note that the tablet game is still Apple’s to lose and the iOS operating system supports a very healthy ecosystem of iPads and iPhones.
“Apple is currently the more homogeneous presence across all device segments, while 90 percent of Android sales are currently in the mobile phone market and 85 percent of Microsoft sales are in the PC market,” says Carolina Milanesi, research vice president at Gartner.
Much of Apple’s slimmer slice of the overall tablet pie has been attributed to the increase in low-cost Android-based devices worldwide. Samsung, Asus, and Amazon continue to build more impressive devices as well as multiple form factors. The increased interest in Windows 8.1 by businesses may also dampen any gains by Apple in mobile device domination.

1.2.3. Sales by product segment: Size and price matter

Price-conscious consumers are beginning to adopt less expensive tablets instead of premium-priced ones. The popularity of the iPad mini is a testament of that trend.
Share of the iPad mini
2013: 60% of iOS tablet sales

The shift to smaller form factors has been aggressive over the last two years but will only slightly increase over the next four. The anticipated slowed growth is likely due to homes with multiple devices that embrace cheaper tablets for media consumption and simple communication.
Worldwide tablet market share by screen size band
 
2011
< 8": 27%
8" – 11": 73%
11"+: 0%
 
2013
< 8": 55%
8" – 11": 43%
11"+: 2%
 
2017 (Forecast)
< 8": 57%
8" – 11": 37%
11"+: 6%
 
Source: IDC, May 2013

Lowering the cost of owning a tablet has helped increase sales overall.
Worldwide average selling price for tablets 
2013: $381
Variation vs. 2012: -10.8%
To put this in perspective, in 2010, the original iPad sold for $499.

1.2.4 Sales to corporations vs. consumers

Percentage of tablets owned by businesses
By the end of 2012: 11% (est.)
By the end of 2017: 18% (proj.)
(source: Forrester Research, August 2013)
Share of tablet shipments going to enterprise
2013: 13% (proj.)
2017: 20% (proj.)
(source: IDC, August 2013)

1.3. Tablet users

Percentage of Americans ages 12 to 64 who own or use a tablet owned by someone else in household
2011: 20%
2012: 33%
2013: 52%
2014: 64% (proj.)
(source: Frank N. Magid Associates, Oct. 2013)
UK tablet users (in millions)
2012: 14.1 (est.)
2013: 20 (est.)
2014: 24.6 (proj.)
2015: 28.2 (proj.)
2016: 31.8 (proj.)
2017: 34.8 (proj.)
(source: eMarketer, Oct. 2013)

2. Tablet apps

App explosion expected

Apps are the lifeblood of the tablet ecosystem.
Tablet app market
Projected revenue in 2013: $8.8 billion
Share of all mobile application revenue in 2013: 35%
Year when tablet will overtake smartphone app market: 2017
(source: ABI Research)
80% of these apps will be for games, digital publishing, social networking, and e-commerce
(source: ABI Research)
By 2017, more than 160 billion apps will be downloaded globally onto consumer handsets and tablets
(source: Juniper Research)
Number of jobs created in the US by app economy: 500,000 (source: MobileFuture.com)
App market in 2013: $25 billion; by 2017: $46 billion (proj.) (source: MobileFuture.com)
While that might sound like a lot of versions of Angry Birds, business and productivity apps are beginning to make a strong showing, albeit with many challenges.
“While productivity apps are getting better, they are still a sub-par experience on the tablet when compared to the PC,” Jitesh Ubrani, a senior analyst with IDC, told TabTimes. “This has led to slower adoption in business when compared to other commercial segments such as education.”
Non-work related tablet apps tend to offer a far more enriching experience than their web-based counterparts or native PC apps, Ubrani adds. For everyday tasks, the ease of use and personal nature of the device, make tablets an ideal primary computing device.

Challenges for developers

Nevertheless, the challenge remains for developers to profit from their apps, as the downward pressure on pricing leaves many the only option to offer their apps for free at the point of download.
Apps paid for at the point of download (estimate)
2013: 6.1%
2017: 5%
(source: Juniper)
Apple’s App Store and Google’s Play are expected to improve their discovery services for consumers, as the influence of Amazon’s Appstore recommendation engine becomes more prominent.
The rise of the app store has also effectively cut many Mobile Network Operators (MNOs) out of the conversation.
Juniper analyst Sian Rowlands points out that “carrier billing has become an increasingly viable option for MNOs who want to see a share of app store revenues, and also for app stores who want to distribute their content to unbanked consumers. However, MNOs must realise they won’t see as great a revenue share as they did during the pre-app store era”.

3. How tablets are used

OS share of online traffic
iPad: 84.3%
Kindle Fire: 5.9%
Samsung Galaxy Tab: 4.2%
Nook: 1.2%
(source: Chitika, based on ad impressions on its network in the US and Canada, June 2013)
Orientation used on iPad
Landscape: 60%
Portrait: 41%
(source: OnSwipe, based on ad impressions on its network, June 2013)
Sharing platforms used on iPad
Email: 55%
Facebook: 29%
Twitter: 13%
Pinterest: 3%
(source: OnSwipe, based on ad impressions on its network, June 2013)
Tablet magazine readership
Read magazines on tablets: 23%
Bought single issue or subscription in last 30 days:13%
(source: The Mequoda Group, US adult tablet users, June 2013)
Tablet shopping by tablet owners
Likely to purchase physical items: 38%
Do product research: 59%
Make purchases fom home: 95%
(source: Nielsen, August 2013)
Tablet entertainment (12 to 64 year olds)
Likely to use as primary entertainment platform: 52%
Likely to use in front of the television: 57%
(source: Frank N. Magid Associates, October 2013)
Tablet gaming
Likely to play games on their tablet: 69%, with 31% of these gamers participating in in-game transactions. Average spent on mobile games (2012-2013) $48 (annual)
Total in-game spending $914 million (annual)
(source: Frank N. Magid Associates, October 2013)
This document was last updated on December 4, 2013