Published On:Sunday, March 3, 2013
Posted by Shubham Goyal
Nexus 7, iPad Mini And Others May Outsell Larger Tablets
Apple (AAPL) might have publicly dismissed small tablets initially, however its bet to introduce the iPad Mini in 2012 has turned out to be a good choice. As successful as the large iPad model has been since 2010, the iPad smaller versions is a hot seller in the market. In fact, the overall market for small slates could be growing faster than that of the big tablet market if data out of Display Search are more accurate. The research firm has check the earlier forecast and now suggests that smaller tablets will outsell larger ones in 2013.
Why the huge change? It is an old data point, but Display Search found that small tabs shipments dwarfed larger panels at the beginning of this year.
“Shipments of 9.7” tablet PC panels collapsed, falling from 7.4 to 1.3M, while 7” and 7.9” panel shipments grew rapidly, from 12 to 14M. Shipments of 10.1” panels grew only slightly. The January panel shipment data may be an indicator for 2013, starting with Apple’s product mix shift. As we noted in December, Apple had planned to sell 40M iPad Minis (7.9”) and 60M iPads (9.7”) in 2013. However, the reality seems to be the reverse, as the iPad Mini has been more popular than the iPad. We now understand that Apple may be planning to sell 55M iPad Minis (7.9”) and 33M iPads (9.7”) in 2013.”
A visual view of tablet panel shipments between Dec 2012 and Jan 2013 (in millions of units) shows this stark difference between small and large screen. While one month does not make a pattern, it can surely be the beginning of one:
The lower price of smaller screen tablets is completely one driver for sales of the Google Nexus 7,iPad Mini and other similar tablets in this market. Apple iPad Mini starts at $499 while a Nexus tablet, Kindle Fire or iPad, for ex, start at $169 to $329. But another reason is what I noted when comparing portability of the original 7-inch Galaxy and a iPad Tab in early 2011:
“I purchased the Tab on a weekend at the local T-Mobile store and my family wanted to hit the mall afterward. I either carried the device in hand or placed it in my back jeans pocket while cruising the mall for hours. As my wife or daughter stopped to browse for clothes, I quickly whipped out the small tablet to manage e-mail, Web-surf, and watch YouTube videos.
I wouldn’t have been able to do that with the iPad for one simple reason: The iPad wouldn’t have come with me on a trip to the mall in the first place.”
Fast-forward 2 years and I do take an Apple iPad to the mall and nearly every other place I go. But it is the Apple's iPad Mini because it offers all of the features of a standard tablet in a more compact package. It’s very easy to use in more places and simple to carry.
There’s clearly still a market for larger slates; they’re better for productivity and media consumption due to the larger screen. Simply put, 9.7-inch iPad isn't going away anytime soon, nor will the Samsung Galaxy Note 10.1, Asus Transformer, Google Nexus 10, or any number of other large slates.
The trend, however, is toward downsized tablets—or large phones like Samsung Galaxy Note 8.0, depending on user's definition of what’s a smartphone and what’s a tablet.
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