While tablets may be the leaders in the mobile tech marketplace, their shipments are notably slowing.
Until now, t-commerce has been leading the way among mobile devices and the growth rate has only continued to climb, but it looks as though tablet shipments are now starting to lose steam and their growth is experiencing a significant decline.
There has been a far larger decline in the demand for tablets than had been predicted in Q1 2014.
Based on the size of the decline in t-commerce that has actually been experienced, when compared to what was predicted in the first quarter of the year, concerns are now being raised regarding what tablets and 2 in 1s will be facing in terms of additional challenges to the marketplace throughout the rest of the year. In fact, the International Data Corporation (IDC) has now decreased its worldwide tablet plus 2 in 1 forecast for 2014 to be 245.4 million units.
This represents a massive drop in the IDC t-commerce shipments forecast that had previously been made.
Last quarter, the IDC had released a prediction that 2014 would see 260.9 million unit shipments. Clearly, this represents a dramatic change in the direction that tablet sales are expected to take. Still, the IDC pointed out in its report that this forecast continues to represent a year over year growth rate of 12.1 percent.
While this is still a healthy rise, it is nowhere near the growth that was experienced in 2013, when tablet shipments had a year over year rise by 51.8 percent.
According to the IDC program vice president of devices and displays, Tom Mainelli, there are two primary issues that are causing the t-commerce marketplace to slow down. “First, consumers are keeping their tablets, especially higher-cost models from major vendors, far longer than originally anticipated. And when they do buy a new one they are often passing their existing tablet off to another member of the family.”
Secondly, he pointed out that as “phablets” – that is hybrids between smartphones and tablets which have screens larger than 5.5 inches – make a bigger splash in the market, consumers are starting to think twice about buying individual smartphones and tablets and are thinking about combining.
Forecasters had previously predicted that shopping over smartphones would cut back on in-person purchases.
As mobile commerce continues to become increasingly popular among retailers and consumers, alike many forecasters had expected that this would start to negatively impact the amount of shopping that would be occurring in brick and mortar store locations, but recent data is showing that this is not the case.
Many store owners were becoming afraid that mcommerce might have represented their demise.
That said, despite the fact that mobile commerce is growing ever stronger, it is online shopping as a whole that poses the real threat to in-person shopping. A new Gallup poll has indicated that purchasing over smartphones and tablets hasn’t had any real impact on the buying habits at brick and mortar locations, when it comes to the majority of consumers in the United States. In fact, most people who took part in the poll stated that there has been no change in the shopping that they do within actual retail store locations.
This indicates that the growth of mobile commerce is occurring specifically within the online space.
Among the respondents, 59 percent said that they have not altered their retail store shopping. An additional 22 percent said that they shop in-person more often now, because of their smartphones and tablets. That said, 19 percent said that they are shopping less frequently at retail store locations.
As e-commerce becomes stronger, retailers with brick and mortar locations have found that they are experiencing an increasing level of challenges. This is partially due to the fact that their online competition – particularly giants such as Amazon – have notably lower overhead costs, simply due to the very nature of what they are. This can, according to officials from Gallup, allow those online stores to offer the exact same products at meaningfully lower prices.
Another poll that was conducted by Gallup during the holiday shopping season identified “showrooming” as a potential threat, as consumers have a look at a product in a retail store and then compare prices on their smartphones and purchase it over mobile commerce for the lowest cost. That said, as of yet, retailers seem to be embracing the power of mobile marketing and mcommerce and don’t seem to be experiencing any harm from its existence and popularity.
