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IMS: Tablet market to continue hurting PC makers through 2011

Updated Dec 19th, 2018 7:08PM EST

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Market research firm IMS Research on Tuesday said the growing market for tablets and eReaders will continue to have a significant impact on portable PC sales this year. The report shows that the 2010 holiday season capped off a massive fourth quarter for tablets and eReaders. eReader shipments in the quarter were up 90% over the third quarter and 116% year-over-year to 5.1 million units, with Amazon’s Kindle and Barnes & Noble’s NOOK the biggest winners. Led by Apple’s iPad, tablet shipments were even more impressive in the fourth quarter. The tablet market grew 124% in the quarter, with 9.4 million units shipped. Apple led the market with a 78% share, followed by Samsung. This impressive performance only represented 8% of the portable PC market in 2010, however, but IMS foresees a tablet explosion this year. The firm predicts tablet shipments will grow 242% to 58 million units in 2011, which will account for 23% of the portable PC market. Hit the break for the full press release.

eReaders and tablets have a great holiday, set to continue performing through 2011 and beyond

IMS Research forecasts 213% growth & 90 million shipments combined in 2011

Austin, Texas – March 29, 2011. eReaders and tablets were the hot products of the final quarter of last year as consumers gifted the devices during the holiday season, according to IMS Research’s latest Quarterly eReader & Tablet Report.

eReader shipments totaled 5.1 million units worldwide in Q410, up 90% on the previous quarter, and an increase of 116% on Q409. Amazon and Barnes & Noble were the primary beneficiaries, gaining share at the expense of Sony, Hanvon and others. Barnes & Noble overtook Sony to rank second in the market, and its new NOOK Color eReader, retail presence and growing eBookstore should result in further gains.

“With strong promotional efforts in the first quarter, and the NOOK Color ramping, we expect minimal seasonal weakness in Q1 11,” says IMS Research Displays SVP Ross Young. “In fact, a 2% sequential rise, and 178% year-on-year spike to 5.2 million eReader units is expected. IMS Research also forecasts 146% growth for 2011, with total shipments running to 29 million units, on the back of lower prices in the second-half, increased availability of new functions (touch) and new features (color), plus the maintenance of a wide price gap vs. tablets.

Tablets outperformed eReaders in Q410, with sales rising 124% quarter-on-quarter to 9.4 milion units thanks to strong iPad holiday sales and significant sell-in of the Samsung Galaxy Tab. Apple’s sell-in market share fell to 78%, with sell-through share significantly higher.

“In Q1 2011, the tablet market is also expected to experience minimal seasonal weakness, falling 6% to 8.8 million units,” says Young. “Sequential growth is not expected as new product shipments from Apple, Motorola, RIM and others are unlikely to be sufficient to offset sell-through challenges at Samsung, traditional seasonal weakness and certain component constraints.”

For all of 2011, IMS Research predicts tablet growth of 242% to 58 million units. This represents 23% of the total portable PC market, up from 8% in 2010 on widespread consumer adoption and increased acceptance in commercial environments. Apple is forecast to maintain over a 75% share of the tablet market in 2011 on its software, cost, price and first-mover advantages. Tablet display shipments are expected to rise 247% to 63 million units.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.