Monday, May 9, 2011

Tablet Owners Use PCs, Other Devices Less Often

Web tablets appear to be having a significant impact on the amount of time that many device owners spend on their other electronic gadgets, according to a Nielsen survey of tablet Relevant Products/Services owners released Friday. When asked to quantify the extent to which they used other connected devices since purchasing a tablet, 32 percent of the respondents who also owned a desktop Relevant Products/Services PC said they used their tethered computers less often and three percent said they no longer use their desktop machines at all.

What's more, those survey respondents who also owned a notebook Relevant Products/Services said they either used their laptops less often (30 percent) or never (two percent) since acquiring a tablet. Whether this signals a long-term change in consumer buying habits is unclear. However, weak demand for consumer PCs was the biggest inhibitor of computer Relevant Products/Services market growth in the first three months of 2011, according to Mika Kitagawa, a principal analyst at Gartner.

"With the launch of the iPad Relevant Products/Services 2 in February, more consumers either switched to buying an alternative device or simply held back from buying PCs," Kitagawa noted. "We're investigating whether this trend is likely to have a long-term effect on the PC market."

Weakening PC Demand

Gartner Vice President Carolina Milanesi predicted last October that the all-in-one nature of media tablets would result in the cannibalization of other consumer electronics devices such as e-readers, gaming devices, and media players. "Mini-notebooks will suffer from the strongest cannibalization threat as media-tablet average selling prices (ASPs) drop below $300 over the next two years," she said.

Indeed, shipments of mini-notebooks in the United States during the first three months of 2011 fell 50 percent in comparison with the same period last year, Kitagawa noted Friday. "I would say that the major decline [was] affected by the tablets hype," she said.

Gartner also predicted in October that low-end consumer notebooks would only marginally suffer from tablet cannibalization. Even in the enterprise space, the firm's analysts noted, the majority of knowledge workers cannot use media tablets to replace their notebooks.

"Because of the convenience factor for travel and an 'instant on' for quick lookup functions, many users are paying for the media tablets with their own money to use both for work and pleasure," Gartner's analysts said. (continued...)

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