TrendForce's WitsView predicts customers will be going for bigger tablets these year, saying 9.7" and 10.1" models will make up 88.6% of 2011 WW tablet shipments.
However the analyst suggests that customers will only go for bigger devices on the short term-- with 7" tablets having great long term sales potential, with their market share growing to 12.3% by 2013 (from 2011's 8.3").
The reason? Lower prices.
The LCD panel and touch module account for around 40% of a tablet's cost, and there's a 20% - 30% price difference between a 7" and a 10.1" version of the same panel-- meaning a 7" tablet's unit cost is at least 10" less than a 10.1" model's.
Thus, 7" tablets are ripe for promotion as attractive low-cost devices, attracting more costumers and expanding the tablet market. These tablets could also fill a potential niche between 5" smartphones and 10.1" tablet PCs.
WitsView also suggests 7" devices are ideal for manufacturers wanting to avoid direct competition with Apple's iPad (whose screen measures 9.7").
