BYOD, Smart Connected Device Outlook: IDC Forecasts 2014

Written by CJ Arlotta
June 11, 2013

What's new in the bring your own device market (BYOD) for managed services providers (MSPs)? While smart connected device shipments are expected to surpass 1.7 billion units by next year, don't expect an influx of new devices to manage. Here are the details from a new International Data Corporation (IDC) report.

What's new in the bring your own device market (BYOD) for managed services providers (MSPs)? A recent International Data Corporation (IDC) report revealed that shipments of PCs, tablets, and smartphones are expected to surpass 1.7 billion units by 2014. The majority of these shipments, however, aren't entering developed markets. Where are these smart connected devices heading? We'll reveal the answer, along with additional takeaways from the report.

The IDC Worldwide Quarterly Smart Connect Device Tracker reported that 1 billion out of the 1.7 billion units will be shipped to emerging markets. And within the emerging markets, more than 60 percent of shipments will be delivered to Brazil, Russia, India, and China (BRIC). These countries are expected to generate shipments of 662 million units — a shipment value of more than $206 billion.

According to the report, emerging markets are expected to grow at a compound annual growth rate (CAGR) of 17 percent over the 2012-2017 forecast period, compared to the 7 percent CAGR expected in developed markets.

IDC Clients and Displays Program VP Bob O'Donnell said in his prepared remarks that the prices of tablets and smartphones have become more affordable to individuals in emerging markets.

"Although the double-digit growth of smartphones and tablets in emerging countries is a mouthwatering prospect, the low selling price also means that vendors will face huge struggles to meet the demands profitably," he said. "Given the competitive price points for cheaper smartphones and tablets, this price war is a race to the bottom and it's not at all clear that this low-end market offers sustainable profits to smartphone and tablet vendors."

Demand for tablets and smartphones will be driving the growth in both emerging and developed markets as PCs continue to decline in both these markets.

Meanwhile, 650 million tablet, PC and smartphone units will ship to developmed markets. More specifically, the report stated that the United States, UK, and Japan will buy more than 400 million units — a shipment value of $204 billion.