Market Insight

IHS Lowers Tablet Panel Forecast: rumored 5.5-inch iPhone could affect demand for 7-8 inch tablets

August 07, 2014

Jason Hsu Jason Hsu Senior Principal Analyst, Display Supply Chain

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IHS has reduced its tablet panel forecast for the period between 2014 through 2020, in response to the growing strength of the large smartphone market, and its increased potential to cannibalize the small tablet market.

IHS has reduced the tablet forecast for 2014 by 3.8 million units, and the projected CAGR from 9% to 6% for the forecast period between 2014~2020.

A smartphones with a screen size of 5-inches or larger, sometimes called phablets, is a crossover mobile device intended to serve as both a smartphone and a tablet. Entering the market in 2011 with the Samsung Galaxy Note, these larger smartphones are a growing force in the mobile market, and are eating away at the market share of the smaller sized tablets, especially for the 7~8-inch tablet models.

Many believe that Apple is about to join the phablet market with its upcoming iPhone 6, long rumored to have a 5.5-inch display. So far, the screen size of the upcoming iPhone 6 is unknown, but if it is, indeed, a “phablet”, the historical popularity of Apple smartphones  will lend even greater strength to the phablet market, until now dominated by other brands. This is likely to have a negative effect on demand for the 7~8-inch tablet market, and even eat into Apple’s popular iPad mini sales.

As a strongly growing segment of the mobile market, it is likely that there will be more players entering the phablet market. In addition, with the market for 7-8-inch tablets under pressure, there may be an opening for 7-9-inch tablet to step into the picture and fill the niche between phablets and full size tablets.

(Source - LCD Industry Tracker – Tablet)


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