Tablet Sales Slow Down; Microsoft Struggles

Apple's Next iPads: 13 Things To Expect

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With Apple expected to announce new iPads this Thursday, many analysts have questioned whether the new devices will revitalize slowing tablet sales. Research firm Gartner added more fuel to the fire this week, announcing new data that shows tablet shipments have continued to decelerate.

Gartner's report reinforces questions about iPads' growth prospects, but the data's most troubling implications were reserved for Microsoft. Analysts expressed doubt that Windows Phone will become a significant smartphone player and forecast that most Windows growth will occur among low-cost devices in emerging markets.

Gartner expects worldwide tablet shipments to reach 229 million units this year, an 11% increase compared with 2013. But tablet shipments exploded 55% in 2013, which shows how quickly the industry's growth has slowed.

[Will device freedom while flying be short-lived? Read Flight Attendants Want Mobile Device Ban Reinstated.]

Several factors have contributed to the tablet slowdown. In a statement, Gartner research director Ranjit Atwal noted that tablet owners are waiting longer than expected to replace their devices. Many consumers buy new smartphones every couple of years, both because two-year carrier plans encourage regular upgrades, and because users carry smartphones at all times, which means new improvements are often more deeply felt. But tablets play a more specialized role in most users' routines, and many tablet owners have shown they'll go more than three years before upgrading.

Additionally, Atwal said some tablet users "are not replacing a tablet with a tablet." He noted increased sales of two-in-one devices such as Microsoft's Surface Pro 3. Earlier this month, both Gartner and fellow research firm IDC released data that indicates PC sales, which had been in freefall the last few years, have begun to stabilize. Some of the improvement owes to new device types, as Atwal noted, but some also involves Microsoft's end-of-service deadline for Windows XP, a move that forced millions of customers to buy new computers.

After exploding out of the gate, iPads sales have begun to slow.

Gartner said tablet shipments are still on track to exceed shipments of desktop and notebook PCs by 2015. The firm projects OEMs will ship over 276 million traditional PCs this year, down from over 296 million last year. Tablet shipments are expected to hit 229 million. For 2015, Gartner expects desktop and laptop PC shipments to drop to 261 million units, with tablets swelling to around 273 million.

That said, Gartner expects "premium ultramobiles" -- a category that includes two-in-one hybrid PCs -- to grow as sales of traditional PCs decline. In addition to the 276 million desktop and laptop shipments Gartner expects this year, the firm also anticipates shipments of 37.6 million high-end ultramobiles. Analysts expect this category to amass more than 64 million shipments in 2015.

"The device market continues to evolve, with the relationship between traditional PCs, different form factor ultramobiles (clamshells, hybrids and tablets) and mobile phones becoming increasingly complex," Atwal noted.

Other recent data indicates two-in-one devices have carved out a niche in North America but are still outsold by not only iPads but also Apple's

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