IHS iSuppli: Tablets, Smartphones Take Toll On Single-Purpose CE Devices - Twice

IHS iSuppli: Tablets, Smartphones Take Toll On Single-Purpose CE Devices

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El Segundo, Calif. - Rising demand for multifunction CE devices such as smartphones and media tablets will be responsible for the long-term unit-sales decline of single-task consumer electronics devices such as MP3/video players, portable navigation devices (PNDs) and flat sales of digital still cameras,

IHS iSuppli

forecasts.

 Worldwide unit shipments of smartphones and media tablets will rise at compound annual growth rates of 28.5 percent and 72.1 percent, respectively, between 2010 and 2015, but shipments of PNDs and MP3/video players will decline during those years, and digital camera shipments will flatten out and then fall in 2015. (See table.)

  "The success of multipurpose electronic equipment, often coming at the expense of devices dedicated to a single task, is reshaping the landscape of the consumer electronics industry," said analyst Jordan Selburn. "In many cases, users can replace a slew of dedicated systems with just one multipurpose device, gaining functionality and portability while simultaneously saving money."

 Media tablets only compound the woes for single-purpise devices, he adds. "Media tablets, predominantly the Apple iPad at present, are truly a jack of all trades-and master of most," Selburn said. Although not directly acting as a replacement for pocket-sized equipment, the media tablet "increasingly will play an expanding range of roles for consumers, acting as an e-book reader, music and video player, browser, calendar, alarm clock, gaming platform, PND and camera all in one box," IHS iSuppli continued.

Shipments of media tablets will rise to 262.1 million units in 2015, up from 17.4 million in 2010. Smartphone shipments will increase to more than 1 billion units in 2015 from 294.3 million in 2010. In contrast, MP3/video shipments will fall to 126.8 million units in 2015, declining at a compound annual growth rate (CAGR) of negative 6.8 percent from 180.1 million in 2010. That followed an MP3/video player CAGR of 38.7 percent between 2004 and 2009, IHS iSuppli said.

  In the PND market, unit shipments will decline to 37.2 million in 2015 for a CAGR of negative 2.2 percent, from 41.5 million in 2010. In contrast, PNDs enjoyed an 88.9 percent CAGR from 2004 to 2009.

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