In-Stat: Tablets beating up on e-readers

Although tablet computers and e-readers offer some similar attributes, demand for each of the products is expected to be quite different. According to a new study from research firm In-Stat, consumers want more multi-function capabilities with their products, which is something tablets can deliver.

In-Stat surveyed 1,000 U.S. consumers and found that 38 percent own a tablet, while 26 percent own an e-reader. For future purchasers of tablets, 60 percent plan to buy one with Wi-Fi and 3G capabilities. By 2015, e-reader shipments will reach 40 million, a number that is expected to be dwarfed by tablets.

Other findings of the study are that the total semiconductor market for companies supplying tablets will reach $13.8 billion in 2015, compared to only $1.6 billion for e-readers.

"Of the two, the tablet market is the stronger and more sustainable opportunity," said Stephanie Ethier, senior analyst for In-Stat. "In fact, e-reader manufacturers will soon begin adding tablet-like devices to their lineups in order to take advantage of the tablet frenzy."

This year, the number of tablets sold is expected to reach 55.7 million, growing significantly from the 19 million sold in 2010, according to research firm NBD Group. By 2014, the tablet market is projected to reach 172.4 million.