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Large-screen smartphones may hit global tablet growth

Earlier, it had projected worldwide tablet shipments to touch 227.4 million units in 2013 from about 143.7 million units last year.

'Worldwide tablet shipments are expected to reach 221.3 million units in 2013, down slightly from a previous forecast of 227.4 million but still 53.5 per cent above 2012 levels,' IDC said in a statement.

Shipment growth is forecast to slow to 22.2 per cent year over year in 2014 to a total of 270.5 million units, it added.

'In some markets consumers are already making the choice to buy a large smartphone rather than buying a small tablet, and as a result we've lowered our long-term forecast,' IDC Tablet Research Director Tom Mainelli said.

Meanwhile, in mature markets like the US where tablets have been shipping in large volumes since 2010 and are already well established, IDC is less concerned about large phones cannibalising shipments and is more worried about market saturation, he added. IDC also revised the tablet shipment volumes downwards by over 20 million units for 2017 adding that growth will slow to single-digit rates.

'By 2017, annual market growth will slow to single-digit percentages and shipments will peak at 386.3 million units, down from the previous forecast of 407 million units,' it said.

One key factor to watch going forward is the mix of small versus large tablets, IDC added.

The market has trended toward small tablets in a big way over the last 24 months, but rise of large phones could well push consumers back toward larger tablets as the difference between a 6-inch smartphone and a 7-inch tablet is not great enough to warrant purchasing both, the research firm added.

World semiconductor revenues up 5.2% to $315.4 billion in 2013

New Delhi:
Global semiconductor revenues have risen by 5.2 per cent to $315.4 billion this year because of increased demand for dynamic memory (DRAM) chips, research firm Gartner said on Wednesday. Worldwide semiconductor revenues stood at $299.9 billion last year.

‘After a weak start to 2013 due to excess inventory, revenue growth strengthened in the second and third quarters before levelling off in the fourth quarter,’ Gartner said in a statement. ‘Memory, in particular DRAM, led this growth, not due to strong demand, but rather weak supply growth,’ it added.

The overall market faced a number of demand headwinds with PC production declining 9 per cent and premium smartphone market showing signs of saturation, with growth tilting toward lower-priced, entry-level and midrange smartphone models. These demand headwinds become very visible when looking at revenue growth outside of memory, where the rest of the semiconductor market could only muster 0.4 per cent growth, Gartner added. Top 25 semiconductor vendors’ combined revenue increased 6.2 per cent, a significantly better performance than the rest of the market, whose revenue growth was 2.9 per cent. This was, in part, due to the concentration of memory vendors, which saw significant growth in the top ranking, it said.

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