Taipei, Thursday, March 5, 2015 23:17 (GMT+8)
light drizzle
Taipei
17°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
  • Innolux to recruit 2,000 new employees in 2015

    Displays | 59min ago

  • Global Unichip utilizes Cadence analog IP to implement WiGig-enabled SoC on 28nm process

    Bits + chips | 1h ago

  • AMD unveils LiquidVR for virtual reality headset products

    IT + CE | 1h 2min ago

  • Inspection tool maker HMI looks to 25-35% revenue growth in 2015

    Bits + chips | 1h 4min ago

  • AUO recruiting 1,500 new engineers

    Displays | 1h 6min ago

  • Lextar Electronics February revenues down on month, up on year

    LED | 1h 7min ago

  • Elan to deal out cash dividend of NT$3.60 for 2014

    Bits + chips | 1h 9min ago

  • PC shipments in 1Q15 may fall over 20%, say Taiwan makers

    Before Going to Press | 1h 19min ago

  • Acer Octon to promote business-use communication solutions via CHT

    Before Going to Press | 1h 20min ago

  • KYEC expects 2015 sales to rise

    Before Going to Press | 1h 21min ago

  • SPIL February sales rise 16.2%

    Before Going to Press | 1h 22min ago

  • SMIC buying 28nm production equipment

    Before Going to Press | 1h 22min ago

  • Global Unichip utilizes Cadence analog IP to implement WiGig-enabled SoC on 28nm process

    Before Going to Press | 1h 23min ago

  • 4G handset penetration in China to reach 40% in 2015

    Before Going to Press | 1h 24min ago

  • Inspection tool maker HMI looks to 25-35% revenue growth in 2015

    Before Going to Press | 1h 25min ago

  • Lextar Electronics February revenues down on month, up on year

    Before Going to Press | 1h 26min ago

  • Unity Opto Technology sees sequential drop in February revenues

    Before Going to Press | 1h 26min ago

  • Getac February revenues down sequentially

    Before Going to Press | 1h 27min ago

  • GET to issue up to 150 million new shares for private placement

    Before Going to Press | 1h 27min 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
Analysis of China revised domestic semiconductor industry goals
Trends and developments in the OTT market
  • 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.