IDC reduces worldwide tablet growth forecast for 2014

The worldwide tablet market is forecast to grow by 19.4 per cent in 2014, down from a growth rate of 51.6 per cent in 2013, according to latest forecasts from IDC. The research company reduced the 2014 forecast by 3.6 per cent from its previous projection to 260.9 million units worldwide. The reduction in the short-term forecast was due to slowing consumer purchases as hardware iterations slow and the installed base, particularly in mature markets, continues to grow. Over the course of the past two years average selling prices (ASPs) have declined rapidly in the tablet market, but this too appears to be slowing. In 2012, ASPs declined by 18.3 per cent from the previous year, and in 2013 prices dropped another 14.6 per cent. Price erosion has started to slowly bottom out, with ASPs forecast to drop a modest 3.6 per cent in 2014. IDC believes ASP declines will slow for several reasons. Chief among them are the growth of higher-priced commercial shipments and a consumer movement away from ultra-low cost products. Report