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Tablets vs. Smartphones: Why Smartphones Are Replacing Tablets

October 25, 2014
Tablets vs. Smartphones: Why Smartphones Are Replacing Tablets

The Shifting Landscape of Computing Devices

Growth in tablet sales is demonstrably slowing, with Apple experiencing a decline in iPad shipments each quarter. Conversely, PC sales are showing signs of improvement. The increasing size of modern smartphones provides a compelling alternative for content consumption.

Even Microsoft acknowledges the enduring relevance of the desktop operating system, recognizing that PCs are not facing obsolescence. Tablets were once envisioned as the future of computing.

It was widely predicted that laptops and desktops would be superseded – or, at the very least, that individuals would possess a smartphone, a tablet, and a PC. However, tablets are now appearing to occupy a more specialized market segment.

Tablet and PC Sales: A Comparative Analysis

Related: Are PCs Dying? Of Course Not, Here's Why

Our previous analysis highlighted the decelerating growth of tablet sales alongside the moderating decline in PC sales. Current data further supports this observation.

  • According to Gartner’s October 2014 report, tablet sales growth is diminishing. A 55 percent increase was recorded between 2012 and 2013, but this slowed to just 11 percent between 2013 and 2014. (Source)
  • Apple’s Q3 2014 financial results indicate a decrease in iPad sales. A 19 percent decline was observed compared to the prior quarter, and a 9 percent decrease year-over-year. (Source)
  • Gartner’s July 2014 data reveals a recovery in PC sales. A 0.1 percent increase in sales was noted in Q2 2014 compared to Q2 2013. While modest, this trend signifies an upward trajectory for PCs and a downward trend for tablets. The period of decline for the PC appears to be concluding. (Source)

The Impact of Smartphones on Tablet Demand

Smartphone screen dimensions are consistently increasing annually. Android devices have been expanding in size for several years, and Microsoft’s Windows Phones have mirrored this trend.

Even Apple responded to market demands by introducing larger iPhone models with the iPhone 6 and 6 Plus. (Data confirms a continuing rise in smartphone sales.)

While smartphones are unlikely to replace laptops or desktops in the near future, they are demonstrably impacting tablet sales. Consider the comparison between an iPhone 6 Plus, or even an iPhone 6, and an iPad.

An iPad Mini appears comparatively small when held alongside an iPhone 6 Plus – the need for both devices is questionable. The iPad’s software doesn’t fully leverage the larger screen as effectively as it could.

The inability to run multiple applications simultaneously represents a limitation that diminishes the appeal of a tablet. While specialized applications can benefit from the larger display for professional tasks, the value proposition of tablets decreases as smartphone screen sizes grow.

A similar dynamic is evident within the Android ecosystem. Google discontinued the Nexus 7 tablet following the release of the Nexus 6 smartphone. The rationale is clear: why acquire a 7-inch tablet when a 6-inch smartphone is available? Android tablets also lack the capability to display multiple applications concurrently, limiting the advantage of a larger screen to media consumption.

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Microsoft Acknowledges Continued PC Relevance

Related: Reasons for Remaining a Windows 7 User Despite Windows 8 Exploration

While initially positioned as a "touch-first" operating system, as Microsoft communicated, the Windows 10 Technical Preview represents a shift towards a "mouse-and-keyboard-first" approach. The company has recognized that a significant user base continues to rely on PCs, and Windows should therefore excel as a desktop operating system.

The importance of this adjustment cannot be underestimated. Reports from Paul Thurrot and others indicated that, during Windows 8’s development, internal Microsoft strategies contemplated the eventual removal of the desktop environment from future Windows iterations. Within Windows 8, the desktop was treated merely as an application – a concept that was widely discussed. There was even speculation that this application might be eliminated entirely by Windows 9 or 10. This plan is no longer being pursued. Following extensive user feedback, Microsoft has determined that touch-centric tablets alone do not represent the future of computing.

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The Declining Role of Tablets Amidst Smartphone Advancement

Consequently, the fundamental purpose of a tablet is being questioned. Smartphones are increasing in size, offering constant portability and consistent data connectivity. Tablets are often limited to running a single application simultaneously – although Windows tablets offer this capability, application availability remains limited. As smartphone screen sizes grow, they can deliver a simplified, single-app, touch-based experience in any location. The necessity of a separate tablet is therefore diminishing.

Laptops and desktop computers remain essential, providing a robust mouse-and-keyboard interface alongside multi-window support and multitasking capabilities. For productivity tasks – or simply managing multiple applications – an iPad or Android tablet proves considerably less efficient than a conventional Windows, Mac, Linux, or Chrome OS PC.

This leaves tablets in a precarious position. Larger smartphones are gaining ground at the lower end of the market, while laptops are becoming lighter and more energy-efficient at the higher end. Hybrid devices, such as laptops capable of functioning as tablets, are also emerging – a concept Microsoft is actively investing in. The question remains: why purchase a tablet? In what scenarios would it be preferred over a larger smartphone or a laptop? Frequent enough to justify the added expense and inconvenience of carrying another device? Perhaps not.

Tablets must undergo further development to leverage their larger screens for tasks beyond the capabilities of smartphones. A tablet featuring robust multitasking functionality, and potentially a larger display, would be significantly more appealing. The Surface Pro 3 exemplifies this approach. Google’s new Nexus 9 will include a keyboard dock to enhance its productivity features. Furthermore, Apple is reportedly developing an “iPad Pro” with a larger screen and multitasking support.

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It’s important to note that tablets are not obsolete. However, their market position has weakened. Predictions that tablets would supersede laptops for the majority of users have not materialized. The notion of individuals owning “three screens” – a smartphone, a tablet, and a laptop or desktop – also appears less certain.

Tablets are facing pressure from both ends of the spectrum, and they must evolve into more powerful productivity tools with multitasking capabilities to effectively compete with laptops. The idea of replacing a laptop with a 10-inch screen limited to a single application at a time seems increasingly unlikely. To truly supplant laptops, tablets must become more akin to PCs – essentially evolving into a different form of PC.

Image Credit: SirMo76 on Flickr, William Hook on Flickr, Scott Akerman on Flickr

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