Mobile device usage could turn TVs into ‘second screen’

Forget the so-called second screen, tablet computers may be on their way to becoming the true primary screen.

The devices appear to be cannibalizing the market for both notebook computers and small television sets, as both sectors have declined as tablets sales have strengthened. Compared with the introduction of such innovations as color TV, DVD and CD players, "none of the growth rates match those that tablets have seen in this market," said CEA director of analysis Steve Koenig.

Koenig reflected on the growing dominance of tablets as the central theme of the Consumer Electronics Assn.'s annual State of the Consumer Electronics Industry and CES Trends to Watch presentations ahead of this week's Consumer Electronics Show, in Las Vegas.

Sales grosses for smartphones and tablets are far ahead of other traditional market drivers such as videogame consoles, TVs and notebook computers, despite price deflation for those devices.

"On the one hand yes, (mobile devices) are cannibalizing to some degree, but on the other hand they have helped transform global markets and continue to generate growth," said Steve Bambridge, business director at GFK Boutique Research, who presented with Koenig on Sunday.

That upward trend of tablet sales reflects a "collapse of devices," said Koenig, as consumers replace single-use devices with multi-use smartphones and tablets. "I think over time we'll own fewer and fewer devices" said Koenig, who noted new form factors will be seen on the CES floor to reflect that.

"A lot of these other product categories are turning into apps," said Koenig. "It goes back to the app-lification of our industry. … If we're just going to talk about hardware, our entire industry could turn negative. Over time it's going to be less about hardware and more about software, cloud, et cetera."