Sunday, October 17, 2010

Tablet PCs Will Cannibalize Other Devices

Tablet PCs will cannibalize e-book readers, gaming devices and media players, in addition to some notebooks, says Gartner.

Worldwide media tablet sales to end users are forecast to reach 19.5 million units in 2010, according to Gartner, reaching 54.8 million units in 2011, up 181 percent from 2010 and surpassing 208 million units in 2014. As you might guess, such growth will likely cannibalize sales of other products.

“The all-in-one nature of media tablets will result in the cannibalization of other consumer electronics devices such as e-readers, gaming devices and media players,” said Carolina Milanesi, research vice president at Gartner. “Mini notebooks will suffer from the strongest cannibalization threat as media tablet average selling prices (ASPs) drop below $300 over the next 2 years.”

Low-end consumer notebooks will only marginally suffer from cannibalization. Gartner analysts also expect very limited cannibalization of smartphones, except for cases where a user has to justify buying either a high-end smartphone or a seven-inch tablet. In such cases, users might opt for the tablet, and buy a lower-cost smartphone.

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