Market Overview

Strategy Analytics: In the Age of Smartphones, Laptop and Tablet Ownership Strong at 1.5 Billion Units


Connected computing device market driven by diversity in products, new
use cases, and large screens for work and play

The connected computing market – including all forms of laptops and
tablets – is showing surprising resilience, according to
latest research. Despite global shipments falling
4% year-over-year, the installed base is at a massive 1.5 billion units
and household penetration is at 30%, which is the measure of how many
households have at least one connected computing device. This rate is in
the 60% to 70% range in many developed markets. The company projects
that consumers are paring down the number of multiple computing devices
they own, replacing their computing devices less regularly, holding on
to them for much longer, and spending less when they finally do replace
them, putting pressure on device vendor revenues.

This press release features multimedia. View the full release here:

Global Connected Computing Device Installed Base by Form Factor (Graphic: Business Wire)

Global Connected Computing Device Installed Base by Form Factor (Graphic: Business Wire)

The full report from Strategy Analytics' Connected Computing Devices
(CCD) service, Connected Computing Shipments, Revenue, Installed Base
and Penetration Forecast by Country 2010-2022
, can be found here:

The report also predicts that global sales of connected computing
devices will increase from 354 million units in 2018 to 403 million in
2022, while revenues will increase from $148 billion to $156 billion
over the same period.

Eric Smith, Director – Connected Computing said, "The
trends in entertainment and work drive this enduring strength of
connected computing devices and these trends are manifested in how
diverse the installed base has become. People use devices based on what
makes the most sense at any given time and while smartphones are a
pocket away for many people, laptops and tablets are the go-to devices
for long-form entertainment and work. It's crucial for vendors and
retailers to be acutely aware of what drives a buyer to choose an
Ultramobile PC versus a Traditional Notebook PC versus a Detachable
2-in-1. Furthermore, vendors need to optimize their Slate Tablets to
better fit in the entertainment picture as many older devices are
approaching the end of the replacement cycle."

David Mercer, Vice President and Principal Analyst added, "The
industry is entering uncertain times as the installed base begins a slow
decline after years of market contraction. Enterprises are getting more
flexible in how they deploy connected computing devices to help their
employees become more productive and, generally, more mobile. Device
manufacturers have done a good job of providing a diverse mix of form
factors for enterprise, but consumers are not as impressed. New form
factors, slimmer profiles, and beautiful designs all come at higher
cost, which has been a major impediment to faster replacement rates as
household electronics budgets are spread thinner every year."

Chirag Upadhyay, Senior Research Analyst concluded, "We expect
penetration rates in most countries to rise over the next five years and
there are a few dynamics at play here. Firstly, growing household income
in many emerging markets will drive the sales of connected computing
devices for entertainment and productivity needs. Secondly, replacement
rates will rebound in developed markets as many devices are too old to
handle modern demands and cannot keep up with the behavioral changes of
both consumer and enterprise users. This includes cellular connected
laptops, new ARM processor configurations, and more choice of OSes
across all form factors. Finally, fierce competition will drive down
prices into more consumers' budgets, particularly for Detachable

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory
services, consulting and actionable market intelligence for emerging
technology, mobile and wireless, digital consumer and automotive
electronics companies. With offices in North America, Europe and Asia,
Strategy Analytics delivers insights for enterprise success.

For more information about Strategy Analytics

Connected Computing Devices: Click
to learn more about our tablet and laptop PC market coverage.

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