Tech

Everything You Need To Know About The Exploding Tablet Market

Pascal-Emmanuel Gobry
2011-02-16T15:53:00Z
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The tablet market is exploding, but it's sometimes easy to miss just how fast it's growing.

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Morgan Stanley Research has a good report on the state of the tablet market and, more importantly, where it's going.

Summary in four words? Tablets will be HUUUUUGE.

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No other category of mobile device has ever grown so fast.

morgan stanley tablet fastest ramping mobile device
Morgan Stanley

What's more, it's huge in the enterprise as well.

morgan stanley tablet adoption
Morgan Stanley
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Most people hadn't expected tablets to be so big in the enterprise. ("It's a toy", etc.)

morgan stanley tablet enterprise
Morgan Stanley

Global demand is huge. (Look at China!)

morgan stanley tablet overseas demand
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Over 40% of people want tablets. As prices drop, more and more will get them.

morgan stanley tablet purchase intentions
Morgan Stanley

It's not just a fad: interest is growing.

morgan stanley tablet purchase intentions comparison
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People use tablets mostly to consume content...

morgan stanley tablet content consumption
Morgan Stanley

...Which happens to be what people use PCs for as well!

morgan stanley tablet pc usage
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People are shifting some of the time they spend consuming content on their PC to their tablet, but still use mostly their PC to create content. (This is consistent with our personal experience.)

morgan stanley tablet usage overlap
Morgan Stanley

People are using PCs less and less...

morgan stanley tablet pc usage
Morgan Stanley
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This means tablets are cannibalizing PCs. (Watch out Microsoft!)

morgan stanley tablet pc market
Morgan Stanley

Tablets are ALREADY eating into PC sales.

morgan stanley tablet pc market growth
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And it'll have more effect in the future.

morgan stanley tablet cannibalization
Morgan Stanley

And tablets are DESTROYING netbooks.

morgan stanley tablet netbooks
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We're going from a computing world dominated by one device (the PC) to one with many devices (smartphones, tablets, laptops, desktops). Side note: this is bullish for the cloud, which is needed to tie it all together.

morgan stanley tablet fragmentation
Morgan Stanley

BEARS: "Tablets are still really small!" BULLS: "Look at how much growth there's left!" (We're with the bulls.)

morgan stanley tablet perspective
Morgan Stanley
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85 million tablet shipments by 2012 is reasonable.

morgan stanley tablet base case
Morgan Stanley

But over A HUNDRED million is possible in 2012 as well.

morgan stanley tablet bull case
Morgan Stanley
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Everyone and their brother is coming out with an Android tablet this year.

morgan stanley tablet stocks
Morgan Stanley

If you're a gambler, here's the stocks you should buy/short if you want to "play" the tablet narrative.

morgan stanley tablet stocks
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Quick rundown of the big tablet milestones coming up this year.

morgan stanley tablet 2011
Morgan Stanley

This is our favorite chart: tablets are part of a bigger narrative, which is the mobile internet, and will be HHHHHUGE.

morgan stanley tablet mobile
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More charts? Ok!

Mary Meeker

Read Mary Meeker's latest amazing presentation on the future of tech →

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