Have We Hit Peak Tablet at Last? Signs of a Slowdown Emerge

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There are indications that the tablet market may have hit its peak and could be about to slow down somewhat.

Citing sources within the display screen components market, DisplaySearch writes on a blog that they are seeing weaker demand for display panels from tablet manufacturers. That by inference suggests that the tablet manufacturers are either reducing orders for some mysterious reason, or that they are seeing slower sales.

The report noted that even Chinese white box makers are struggling, as the low cost/price model has been impacted.

The analyst specifically noted that for the first time in our monthly tablet PC panel shipment tracking, tablet PC panel shipments have shown a year-on-year decline. Shipments in April were estimated at 24.2 million units -- a decline of 4% compared to a year ago.

Part of the slow down could be attributed to the rise of larger screen smartphones, which reduces the imperative for consumers to buy a tablet as they can mange with the smartphone.

Also, there is limited upside to the upgrade market. People with older tablets are just not seeing the benefits in a costly upgrade, so they are happy with their older device, until it eventually breaks.

On the web: Display Search Blog

Click on images to enlarge


Source: Monthly TFT LCD Shipment Database

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Tags: tablet 

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