Taipei, Monday, March 2, 2015 23:09 (GMT+8)
mostly cloudy
Taipei
16°C
Digitimes Research: Non-Apple brand vendors to ship 105 million tablets in 2014
Jim Hsiao, DIGITIMES Research, Taipei [Tuesday 19 November 2013]

Global tablet shipments are expected to reach 289 million units in 2014, up 23.6% on year. The growth, however, will be weaker than that for smartphones due to the fact that the tablet market has already entered the maturity stage, according to Digitimes Research's latest figures.

In 2014, non-Apple first-tier brand vendors' products are expected to have more room for price cuts, making their products even more competitive in China than their white-box competitors. The lower pricing means retailers will be more eager to promote their products. The gap in terms of functionality between Google's official Android operating system and Android Open Source Project (used mostly by China white-box vendors) are also expected to be widen. As a result, the non-Apple first-tier vendors' combined shipments are expected to grow dramatically to 105 million units in 2014, slightly surpassing China white-box vendors' combined shipments of 104 million units, according to estimates by Digitimes Research.

Although the fifth-generation iPad (Air) is expected to attract consumers and stimulate replacement demand, the device's high pricing are expected to limit iPad series products' shipment growth in 2014 with the volume to reach only 80 million units.

As for brand vendors' rankings, Apple and Samsung Electronics will remain in the top two in 2014. Since Samsung will adopt more aggressive marketing and pricing strategies in 2014, its shipments will reach 52.5 million units, reducing its gap with the market leader Apple. Lenovo, as the largest PC vendor worldwide and with advantages in its home market of China, is expected to ship 9.5 million units in 2014 to take third place in the tablet market.

Having failed to obtain orders for the next-generation Google Nexus tablets, Asustek Computer is expected to step up promoting its own-brand tablets, and it will ship nine million units in 2014, becoming the fourth largest vendor.

Acer will have a strong presence in entry-level segment, shipping 6.7 million tablets in 2014 to take sixth place, while Google will be the fifth largest vendor. Amazon's and Microsoft's shipments will stay flat or grow only slightly on year.

Digitimes Research expects 7-inch models to remain as the mainstream size for branded tablets in 2014 with shipments set to reach 89.1 million units. But the segment's share of total tablet shipments will drop below 50%. Brand vendors are expected to place more emphasis on 8-inch models as they look to avoid fierce competition in the 7-inch segment, which is crowded with low-price and white-box products. Shipents to the 8-inch segment are expected to reach 30 million units in 2014, triple the volume in 2013 and surpassing 10-inch models' 25.4 million units.

As for Taiwan ODMs, their shipments will hit 117 million units in 2014, accounting only for 63% of the global total, down 5.2pp on year. The share will decline because Samsung and Lenovo, the second and the third largest vendors, are making most of their tablets internally.

To seek lower manufacturing quotes and to diversify risks, brand vendors are expected to further divide their tablet orders among ODMs. Foxconn Electronics (Hon Hai Precision Industry) and Pegatron Technology will remain as the top two ODMs for tablets in 2014. With more orders coming from Apple and Asustek, Pegatron will see significant tablet shipment growth in 2014, narrowing its gap with Foxconn. Compal Electronics is expected to surpass Quanta Computer to become the third-largest table ODM, thanks to orders from Apple and its acquisition of Compal Communication.

This article is an excerpt from a Digitimes Research Special Report (2014 global tablet demand forecast). Visit our latest Special reports.

Realtime news
  • Haier entering tablet OEM business

    IT + CE | 12min ago

  • Samsung, LG and Sony to purchase 42% of global TV panel supply in 2015, says IHS

    Displays | 1h 41min ago

  • TV vendors shifting strategy to prevent panel pricing from increasing

    Displays | 1h 43min ago

  • Lextar Electronics to expand LED epitaxial wafer capacity

    LED | 2h 5min ago

  • SMIC starts mass production for CMOS image sensors

    Bits + chips | 2h 9min ago

  • MWC 2015: HTC, Samsung to showcase new mobile innovations

    Before Going to Press | 1h 32min ago

  • Digitimes Research: South Korea sees worldwide memory market share of 57.1% in 4Q14

    Before Going to Press | 1h 52min ago

  • MIIT sets 2015 targets for China broadband Internet-access development

    Before Going to Press | 1h 54min ago

  • WPG to acquire Genuine shares

    Before Going to Press | 1h 55min ago

  • Digitimes Research: Taiwan IC design industry output value to grow 13% in 2015

    Before Going to Press | 1h 55min ago

  • Ichia Technologies sees decreased February revenues

    Before Going to Press | 2h ago

  • China imports about 93 million tonnes of polysilicon in January

    Before Going to Press | 2h 2min ago

  • Solartech sees decreased February revenues

    Before Going to Press | 2h 3min ago

  • China market: Outdoor LED lighting valued at CNY14.7 billion in 2014

    Before Going to Press | 2h 3min ago

  • China LED chip production value in 2014 estimated at CNY12.0 billion, says GLII

    Before Going to Press | 2h 7min ago

  • Danen Technology February revenues down on month, up on year

    Before Going to Press | 2h 8min ago

Pause
 | 
View more

2015 China IC design market forecast

RESEARCH EXTRAS | Jan 23, 10:50

Global economic growth is forecast to reach 3.8% in 2015, up from 3.3% in 2014. From the perspective of the electronics industry though, PC shipments will continue to decline, smartphone shipment growth will drop, and tablet shipments may decline. Despite the...

2015 global AP market forecast and vendor analysis

RESEARCH EXTRAS | Jan 23, 10:46

Digitimes Research estimates that total 2014 AP shipments will reach 1.52 billion units worldwide, up 19.6% from 2013, and in 2015 the global market will see shipments of 1.65 billion units, growing 8.5% on year. The slowdown is mainly due to a shrinking tablet...

Taiwan large-size LCD panels – 4Q 2014

TAIWAN FPD | Feb 17, 11:23

Taiwan-based makers saw their large-size TFT LCD panel shipments increase on year in fourth-quarter 2014, driven largely by demand for TV applications. But they are facing growing competition from China-based and Korea-based makers who are ramping up new production...

Taiwan LCD TVs – 4Q 2014

TAIWAN FPD | Feb 17, 11:07

Taiwan's LCD TV makers saw significant increases in shipments in the fourth quarter of 2014 thanks to strong seasonal demand, as well as Foxconn's shipments to Mexico to fulfill government procurement orders.

Taiwan small- to mid-size LCD panels – 4Q 2014

TAIWAN FPD | Feb 16, 15:11

Major Taiwan-based suppliers of small- to medium-size LCD panels changed their production strategies in fourth-quarter 2014 as the industry entered the slow season amid sluggish demand for smartphone applications and rising competition from China-based rivals...

2015 China IC design market forecast
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.