Worldwide phablet shipments, defined as smartphones with screen sizes...

Worldwide phablet shipments, defined as smartphones with screen sizes from 5.5 to less than 7 inches, will reach 175 million units worldwide this year, passing the 170 million portable PCs expected to ship during the same period, said International Data Corp. (IDC). Next year, phablet shipments of 318 million are forecast to top tablet shipments, projected at 233 million for the year, IDC said. Phablets began picking up volume in 2012, but the category has already put pressure on the smaller end of the tablet market, where growth of 7-inch tablets has slowed, it said. IDC expects consumer replacement cycles to shift to larger-sized tablets, but that trend hasn’t made up for the falloff in shipments of smaller-sized tablets, which has led to lowered expectations for the tablet market in 2014 and beyond, IDC said. Apple’s expected entrance into the phablet space with the iPhone 6 this month is expected to bring more attention to phablets “as larger screen smartphones become the new norm,” said analyst Melissa Chau. IDC expects phablets to grow from 14 percent of the worldwide smartphone market this year to 32 percent in 2018. While consumers in mature markets including the U.S. and Western Europe are likely to own a combination of PCs, tablets and smartphones, “in many places the smartphone -- regardless of size -- will be the one connected device of choice,” IDC said. Falling average selling prices (ASPs) for phablets and smartphones will help drive the trend, it said, noting that in 2013, phablet ASP was $568 versus a regular smartphone at $320. This year, phablet ASP will drop to $397 while smartphone ASP falls to $291, it said. “Consumers are still trying to figure out what mix of [mobile] devices and screen sizes will suit them best,” analyst Tom Mainelli said. “What works well today could very well shift tomorrow as phones gain larger screens, tablets become more powerful replacements for PCs, and even smart watch screens join the fray."