As tablet shipment growth for 2014 is expected to only reach less than 5%, and Apple's iPad sales also declined 16% sequentially in the first quarter, the IT industry is gradually turning conservative about tablet's future, according to sources from the upstream supply chain. Several first- and second-tier vendors have significantly reduced the number of new projects and order volumes for tablets, and turned to focus on wearable devices.

Most vendors are no longer flooding the market with new tablet models and are instead offering 1-2 models for the 7-, 8- and 10-inch segments and are turning to push convertible notebooks for 10- to 12-inch segments.

Since Apple is also seeing less demand for its iPads, other vendors are unlikely to be able to continue enjoying strong shipment and profit growth in the future.

The sources pointed out that tablets are gradually being replaced by large-size smartphones. Since their performances and functions are also far weaker than notebooks, the tablet industry is currently seeing fierce price competition. US$299 tablets can hardly attract consumers and therefore are forcing vendors such as Asustek Computer and Lenovo to join the sub-US$199 segment.

Seeing the tablet industry has fallen into a price competition dilemma, Google has already turned to focus on wearable devices, while Asustek has also shifted its resources to its smartphone product line.

The sources believe the tablet industry will see its first shipment drop in 2015 and by then, the IT industry will be filled with applications that combine wearable devices with smartphones. ARM- and x86-based processors and components will also start another wave of competition.