The Register® — Biting the hand that feeds IT

Feeds

Researcher ups fondleslab forecast

Don't let the traditionally weak Q1 get you down

Don't write off the tablet, just because retailers ordered fewer of them in the first three months of 2011 than they did in the final three months of 2010.

Rather a lot of pundits seem to be doing so, based on a communication from market watcher IDC headed "Media Tablet Sales Lag Optimistic First Quarter Targets".

According to IDC, "media tablet shipments into sales channels" (our italics) fell by 28 per cent on a sequential basis in Q1 2011 (1Q11) to 7.2m units worldwide.

Key phrase here is "into sales channels", which are shipments to distributors and the resellers supplied by them.

It doesn't necessarily mean punters bought fewer tablets, only that shop owners didn't need as many tablets to meet demand, either because punters weren't spending, or because the resellers had stocks left from ordering too many tablets in the previous quarter.

Either way, you'd expect Q1 channel shipments to be down on the previous quarters' totals because post-Christmas buying activity is always lower than pre-Christmas sales.

As IDC also said: "The eReader market - which IDC counts separately - experienced similar seasonality, undergoing a sequential decline in shipments to 3.3m units as the post-holiday season proved to be challenging for that category."

But year on year, shipments were up 105 per cent, it said.

Back to tablets, was demand down, or did dealers overstock? The former, IDC suggests: "Media Tablets had a bit of a challenging quarter in Q1, as concerns about general macroeconomic issues and the post-holiday letdown took a toll on demand."

Again, no great surprise there, with no major iPad rivals released in the quarter, and the iPad 2 - whose imminent arrival would have dampened demand for the first model - didn't appear until late in the quarter.

Supply chain constraints limited production, which in turn hindered vendors' ability to sell tablets to punters via the sales channel.

This will change, and IDC said it expects more tablets will ship in 2011 than it first thought. Its forecast has been raised from 50.4m units to 53.5m units, an increase of just under 6 per cent. ®

More from The Register

Microsoft reveals Xbox One, the console that can read your heartbeat
Upgrades Live service – and no always-on requirement
 breaking news
Review: Sony Xperia SP
The new mid-range marvel? Oh yes.
US boffin builds 32-way Raspberry Pi cluster
Beowulf cluster built for the price of a single PC
Dell's PC-on-a-stick landing in July: report
Wyse up, suckers, could this be a new set-side-stick?
Review: HP Pavilion 14 Chromebook
All roads lead to Chrome?
Borked your iDevice? Pay EVEN MORE to have it fixed by Applecare
Or scream at their hapless techies on their forums
HTC woes prompts 'leave now' tweet from former staffer
Chief product officer latest to bail from sinking mobe-maker
Euro PC shipments plummet into bottomless pit of DOOOOM
11th quarter of decline, 20pc drop on last year - Gartner