Tablets to Outpace E-reader Shipments by 2012

The growing success of tablets is leaving many to question the viability of the e-reader market’s sustainability. E-readers still offer the truest reading experience and appeal most to avid readers, but a broader market of consumers are demanding multimedia functionality, like web browsing, video and gaming, in their next mobile device.

Tablets, like the Apple iPad, are optimized to deliver this kind of multifunction experience, and therefore, represent a stronger opportunity for suppliers and manufacturers alike. In line with this, a new In-Stat research forecasts that tablet shipments will outpace e-reader shipments by the end of this year.

“Of the two, the tablet market is the stronger and more sustainable opportunity,” says Stephanie Ethier, Senior Analyst. “In fact, e-reader manufacturers will soon begin adding tablet-like devices to their lineups in order to take advantage of the tablet frenzy. Barnes & Noble already offers the Color Nook, which is often compared to a tablet, and Amazon, the leader in the e-reader space with its Kindle, will likely launch a tablet device later this year in an effort to compete head-to-head with the iPad.”

Additional market and survey data findings include:
• Of the 1,000 US respondents to In-Stat’s latest end-user survey, 38 percent own a tablet as compared to the 26 percent who own an e-reader.
• Fueled by low prices and continued expansion of e-book content, global e-reader shipments will reach 40 million by 2015.
• Tablet shipments will outpace e-reader shipments.
• The total semiconductor opportunity for tablet suppliers will reach $13.8 billion in 2015.
• The total semiconductor opportunity for e-reader suppliers will reach $1.6 billion in 2015.
• Over 60 percent of future tablet purchasers plan to buy a tablet equipped with both Wi-Fi and 3G connectivity.
• By 2015, 15 percent of all tablet shipments will go into business markets.

In-Stat