Tablets Crushing Laptops a Lot Faster than Expected

December 16, 2013

News, Tablets

According to an IDC research, tablets will start outselling desktop PCs this year, and laptops in the beginning of 2014. However NPD DisplaySearch claims that the IDC research, done just two months ago, might be pessimistic. Leaders like Apple and Samsung will ship over 250 million tablets worldwide this year, and only around 203 million laptops. That’s a 67% increase of overall tablet shipments.

Why are tablets winning so easily?

It’s not so surprising when you think about it. Tablets can replace pretty much any other similar piece of technology. Especially since companies developing tablet devices have been researching the subject of high-quality video. You can now watch TV on your tablet without any trouble. And many people make a habit of it. “Habits lead revolutions” says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova.

Another major factor is gaming. Aside from being able to play games laptops v tabletsyou once played on a laptop or a desktop, you can now play new games specifically designed for a tablet. Touch screen games or games that use the so called Accelerometer, which automatically adapts your screen with the position of the device.

Compass, GPS, touchscreen, and many other features which only tablets and smartphones can have, are aiding in the war between tablets and PCs. So in essence they’re not only a substitute you can use when you’re too lazy to turn on your computer; they’re a permanent replacement.

Who do I Bet On?

Habit changes create great investing opportunities. 67% increase in tablet shipments is a pretty decent number. It guarantees that Apple isn’t going to crash and burn any time soon, and that number itself is an understatement for the future of this company. Aside from Apple gaining the benefit it needs to overcome low margins, Netflix benefits also.

As mentioned before, people make a habit of watching TV on their tablet, and there is no better source of good television than Netflix. Having perfected the art of delivering high-quality video across a variety of devices, it’s climbing up the ladder as well.

Rovio is one of the bigger gaming companies that make smartphone friendly games. This of course includes tablets as well. One of the most popular games is Angry Birds. To keep the games interesting Rovio creates many different variations of the game specifically designed for these devices. So with making gaming material for tablets, Rovio hit the spot.

What industry is the next target?

Change is inevitable, and any industry – old or new – is bound to be replaced eventually. Radio, Television, Video, the list goes on and on. And although these industries are still alive and breathing, only some get to the top of the pyramid.

Industries that don’t change, die. Google for example recently started experimenting with YouTube paid subscriptions. Or Amazon, who is developing Prime Air; a new delivery system which gets the packages to customers within 30 minutes, by using unmanned aerial vehicles.

In conclusion most companies that want to survive in the world of technology are changing, as well as they should. If you intend on investing in any companies, you might want to look into the ones mentioned here. Don’t buy or sell stocks before doing extensive research.

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