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Canalys: Tablets are eating into PC sales, but the Nexus 7 is hurting Amazon

by Doug Drinkwater

August 1 2012

Canalys says that the Nexus 7 is impacting upon Kindle Fire sales
Canalys says that the Nexus 7 is impacting upon Kindle Fire sales

Canalys says that rising tablet shipments are causing PC sales to slump, and has words of warning for Amazon’s Kindle Fire and for Microsoft with its Surface tablets.

Backing up a similar report last month on how tablets were hindering PC sales, Canalys revealed that PC shipments hit record lows in Q2, although combined tablet and PC shipments grew 11.7% to 108.7 million units in the quarter.

By comparison, tablet shipments looked good, growing 75% year-on-year to 24 million units, a figure which means tablets now account for 22% of all PC shipments.

Apple's iPad continued to lead the market, with Samsung and Asus in second and third respectively. Amazon was a notable absentee, attracting just 500,000 Kindle Fire sales in Q2. Canalys stressed that Google’s Nexus 7 tablet is hurting Kindle Fire sales and urged Jeff Bezos' firm to launch a more powerful tablet sooner rather than later.

With tablets eating into PC shipments, Canalys found that Windows PC shipments dropped to account for just 73% of all shipped devices in Q2.

As with other researchers, Canalys cited poor Ultrabook sales and high prices as some of the reasons for the slumping PC sales, while also highlighting that Microsoft is hindering its hardware partners with the Surface tablets.

The firm recommends that Microsoft subsidize the development of Windows 8 tablets, much as Intel has done with its $300 million funding for the development of Ultrabook components and technology.

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