Falling prices and advances in display technology will lead to higher shipments of tablets, which will increasingly replace notebook shipments in 2014 and beyond. According to DisplaySearch, global tablet shipments will rise to 315 million in 2014, comprising more than 65% of the market. By 2017 tablet shipments will climb to 455 million, encompassing nearly 75% of the mobile PC market.

　　The worldwide tablet ASP is expected to fall from US$311 in 2014 to US$296 in 2017, which will help increase adoption, particularly in emerging regions where first-time PC buyer penetration rates are the highest. As new technologies and features hit the market, consumers will have more options to choose from, including AMOLED and other display technologies, a greater variety of screen sizes, and higher resolutions.

　　"Momentum for the tablet market is in full swing as it has become the dominant mobile PC form factor," said Richard Shim, senior analyst at DisplaySearch. "Competition is expected to increase as traditional notebook PC brands, including Lenovo, Hewlett-Packard (HP), and Dell update their product portfolios to emphasize tablets. Increased competition will mean more attention on, and development of, various segments of the market, which will ultimately lead to greater choice and devices that better fit the needs of consumers."

　　Following weaker than expected shipment demand from the back-to-school and holiday seasons in 2013, notebook brands have reduced their shipment estimates for 2014, with an expected decline of nearly 7% on year. Also, with penetration of less than 10% for 2013, touch panel integration in notebooks has not increased demand as much as expected. The result is weaker than expected demand for standard notebooks and ultra-slim PCs. Standard notebook shipments will decline from 155 million in 2013 to 105 million in 2017. Ultra-slim PC shipments will rise from 26 million in 2013 to 57 million in 2017, the firm said.

　　The weak shipment forecast is forcing brands to re-evaluate their pricing strategies, and a rise in selling prices is expected. Features such as new designs and higher resolution displays will be used to justify higher selling prices. Standard notebook prices are expected to rise from US$667 in 2013 to US$693 in 2014, while ultra-slim PC prices are expected to rise from US$885 to US$936 in 2014.

　　In the tablet market, oxide, LTPS, AMOLED, and other emerging screen technologies, as well as 8.4-, 10.5-, and other new sizes, are expected to give brands increased flexibility to offer more differentiated products to consumers. At the same time, strong market trends continue to drive shipment growth. The shift towards smaller sizes continues to enable lower price points in emerging regions (i.e., eastern Europe, China, Asia Pacific, Latin America, and Middle East and Africa), which will account for more than 60% of worldwide shipments in 2014. Tablets with screens smaller than 9-inch will comprise approximately two-thirds of overall shipments in 2014. The most tablet market share will go to 7-inch screens, exceeding 30% by 2017.

　　Emerging regions will account for an increasing share of worldwide mobile PC shipments, growing from 57%, or 274 million in 2014, to 62%, or 385 million, by 2017. Growth will be led by tablets, which will account for 70% of mobile PC shipments to emerging regions in 2014. Nearly half of tablet PC shipments into emerging regions in 2014 will be devices retailing for less than US$200, DisplaySearch added.