We expect that, like Apple’s iPad, slates from other brands will be positioned as content consumption and manipulation devices, and the necessity of focusing on industrial design and features will result in ASPs that are higher than those of mini-notes
Austin, TX (Vocus) April 6, 2010
For 2010, the total portable PC market is expected to grow to 215 million units and $117 billion, according to a new report by DisplaySearch, its Q1’10 Quarterly Advanced Notebook PC Shipment and Forecast Report. Dramatic increases in the size of the slate-style PC market are expected to be driven by the Apple iPad and slates from other PC brands that are expected to be launched this year. DisplaySearch expects slates to take some market share from clamshell-style netbook PCs, as well as lure customers that desire more functionality away from the e-reader market. The company also foresees the majority of slate volume to ship into the North American and Western European markets due, in large part, to Apple’s distribution plans and known content agreements.
The mini-note/netbook/slate category will be the fastest-growing segment of the portable PC market for 2010, propelled in part by the introduction of slates. However, clamshell style devices will continue to grow as well. In addition, we expect continued strong growth in emerging markets and a recovery of B2B spending in the second half of the year to lead to 25.7% Y/Y growth as the market surges towards 215 million units. (Table 1.)
Strong unit growth and less ASP erosion in 2010 will combine to grow portable PC market revenue to almost $117 billion, recovering to 2008 levels. Revenue growth is forecast to be strongest in the mini-note/slate category due to the introduction of higher-priced products. ASPs for mini-notes have steadily eroded from $400 down to just under $300. The Apple iPad, which we expect to represent the bulk of slate shipments in 2010, has ASPs that start at $499 and increase to more than $800. (Table 2.)
The low prices of clamshell-style mini-notes made these products attractive to buyers seeking a secondary or tertiary PC for the home or office, and also lowered the entry barrier for first-time PC buyers in emerging markets.
"We expect that, like Apple’s iPad, slates from other brands will be positioned as content consumption and manipulation devices, and the necessity of focusing on industrial design and features will result in ASPs that are higher than those of mini-notes," notes John Jacobs, Director of Notebook Market Research.
Jacobs added, "The low ASPs of mini-notes have been a concern to component suppliers, OEMs/ODMs, brands and retailers, due to the thinner margins and lower revenue generation of the devices. Slates—especially those that will be able to mimic Apple’s content library, model of content delivery, and their very successful App Store—will be able to generate greater revenue and healthier margins for the brands that build them, the retailers that sell them, and many of the component makes in the supply chain."
DisplaySearch's New Advanced Quarterly Notebook PC Report Now Available
Building upon DisplaySearch’s proven expertise in notebook PC market research, the company’s new advanced version of its Quarterly Notebook PC Shipment and Forecast Report will take your company’s notebook PC know-how to the next level. With expanded coverage to the end market, including street prices (ASPs) and system revenue for notebook PCs and mini-note (netbook) by display size/resolution by region, you won’t want to miss out on the latest information that can impact your business decisions.
Other report highlights include forecasted notebook PC and mini-note (netbook) shipments by region, display size and resolution, along with insightful analysis of the state of the notebook PC industry, including the breadth and depth of mini-note and notebook PC demand in the major geographic regions, and identifying the key variables influencing changing demand patterns in these markets.
For information on this DisplaySearch report, contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact(at)displaysearch(dot)com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.
Learn more about the notebook. Notebook, netbook and slate PCs market during the SID DisplaySearch Business Conference on May 24 during SID Display Week in Seattle, Washington. For more information on the event, visit http://www.displaysearch.com/events.
Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the $770 billion display supply chain, as well as the emerging photovoltaic/solar cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. In collaboration with the NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com. Read our blog at http://www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.
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