Wi-Fi Tablets Lead to Decline in Embedded Mobile Broadband Device Market

The PC market took a blow in the first quarter of the year with worldwide shipments reaching 76.3 million units — a decline of 13.9 percent compared to the same period in 2012. According to International Data Corporation (IDC), this was the worst quarter for the PC market in the research firm's history of tracking it.

On the flipside, it's pretty common to hear that mobile devices — namely smartphones and tablets — are on the rise, which is generally agreed to be a factor in the PC market's decline. However, a new report from Infonetics Research suggests that the mobile market began to step on its own toes in Q1.

Indeed, the global 3G/4G mobile broadband device market — which includes smartphones, embedded devices and routers — totaled $93 billion in revenue during the first three months of the year, which amounts to a 6-percent decline from the final quarter of 2012. According to the report, this decline can largely be traced back to tablet sales.

"The growing popularity of low-cost, Wi-Fi-only tablets like Google’s Nexus 7 and Amazon’s Kindle Fire is having a direct and negative impact on embedded mobile broadband cards, as the vast majority of embedded device units come from connected tablets," said Richard Webb, directing analyst for microwave and carrier Wi-Fi at Infonetics Research. "Both unit shipments and revenue for the embedded card segment sank by double digits in 1Q13 from the previous quarter and the year-ago quarter."

In Q1, tablets made up 89 percent of embedded device units, with the majority being Wi-Fi-only units. However, Infonetics expects FDD-LTE mobile broadband tablets to top Wi-Fi-only tablets in terms of revenue share by 2017, thanks in part to the greater selling price of connected tablets.

Meanwhile, Infonetics confirmed that the netbook market has been killed off by tablets as leading netbook manufacturers Acer and Asus said they plan to cease production of the tiny laptops.

This information comes from the Infonetics first quarter 2013 3G and 4G Mobile Broadband Devices and Subscribers market share, size and forecasts report.