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As the options for tablets and smartphones multiply, CIOs need to understand the needs of various functional groups while also assessing the trade-offs between standardization and the greater diversity associated with a BYOD approach.

It seems like only yesterday that handheld computers came in just two sizes: tablet or smartphone. The relatively young market for handhelds has matured very quickly, as many manufacturers now offer a wide array of sizes for both types of devices. Simply put, tablets are getting smaller and smartphones are getting bigger—converging on a screen size of 7 inches diagonally.

“CIOs need to understand where the growing variety of tablets and smartphones fit within the portfolio of devices IT chooses to support,” says Rowan Christmas, a specialist leader with Deloitte Digital. Roles and activities within the workforce should determine the portfolio’s mix of devices. “Increasingly, those decisions are being made in the context of a broader BYOD strategy, and with implications not only for the physical assets, but also for application development strategies.”

Compact Tablets Produce Outsize Sales

Surging sales of compact tablets (with screens smaller than 8.5 inches diagonally) have put more of these devices into users’ hands than classic tablets (8.5 inches or larger). Deloitte predicts that by the end of March the installed base of compact tablets will be 165 million units, compared with 160 million units for classic tablets. “Compact tablets such as the iPad mini and the Google Nexus 7 have vaulted to the top of the segment only 18 months or so after the first mass-market models were introduced,” says Paul Lee, director and head of global TMT research, Deloitte Touche Tohmatsu Limited (DTTL).

This year, the tablet market is likely to get even more diverse. In addition to screen size, models will be differentiated based on screen resolution, weight, processor speed, memory capacity, and price. “Each tablet model’s combination of attributes will determine the likely users and patterns of usage,” says Duncan Stewart, director of research for TMT for Deloitte Canada, a member firm of DTTL.

Differences in screen size can have a significant impact on the user experience. “A screen that measures 7 inches diagonally is actually about half the size of a 10-inch screen in terms of area, while an 8-inch screen is about a third smaller,” says Lee. Such size differences can have a big effect when viewing content and using applications, he adds. For example, most websites are designed for viewing on PCs, and these sites can be hard to read on compact tablets. A small screen can also make it difficult to fill out forms, such as on an e-commerce site, or watch videos.

Of course, superior screen resolution can go a long way in mitigating the challenges associated with smaller screens and may outweigh screen size as a device criterion for some users.

Compact tablets may weigh half as much as classic tablets, which further influences how the device is used. Lighter devices are more likely to be used outside the home or office and may be better for games that employ motion sensors. Business people on the go may prefer smaller tablets for accessing enterprise email since they add less weight to an already heavy briefcase or bag.

‘Phablets’ Gain Fans Despite Limitations

Larger smartphones such as the Galaxy Note—known as “phablets,” because they are considered a phone-tablet hybrid—have screen sizes ranging from 5 to 6.9 inches diagonally. (By comparison, an iPhone 5 has a 4-inch screen.) Deloitte predicts that phablet sales in 2014 will reach 300 million units, or about 25 percent of the smartphone market. That is twice the 2013 volume, and 10 times sales in 2012. Phablet revenues should be about $125 billion this year. Their average selling price of $415 is about 10 percent higher than the average for smartphones.

The spike in phablet sales may have run its course, however. “2014 may mark a peak year for phablets, as most smartphone users will not want such a large device,” says Stewart. The human body and clothing are almost certainly limiting factors. Many people find phablets uncomfortable to hold or use as a phone without a headset, and the devices are often too big to fit in pockets. “It seems probable that phablet sales may have an upper limit of between 30 to 40 percent of the total smartphone market, which suggests that phablet sales may reach a plateau either this year or next,” Stewart adds.

Indeed, almost all the growth in phablet sales is at the smaller end of the size range. “Two-thirds of phablets sold in 2014 will be smaller than 5.1 inches (just meeting the segment definition), while less than 10 percent are likely to be six inches or larger,” says Lee.

The category as a whole is more popular in Asia-Pacific markets. “In the second quarter of 2013, sales of phablets in Asia-Pacific excluding Japan reached 25 million—a higher figure than for tablets or notebook computers,” says Stewart. Many markets have seen dramatic increases in phablet sales. “In India, phablet sales represented more than 30 percent of the smartphone market in the second quarter of 2013, and unit sales were up 1,700 percent from the same period in 2012,” he says. In contrast, sales of phablets in Europe represented only eight percent of the smartphone market in late 2013, and North America was only slightly ahead at 10 percent, Stewart adds.

Why are phablets so much more popular in some markets than others? “One theory is that phablets are better for mobile gaming,” says Lee. It is also possible that in the crowded mass transit systems of Asia-Pacific cities, many people prefer carrying and using phablets as an all-in-one device. Language appears to be another important factor. “Because Korean and Chinese, and to a lesser extent Hindi and Arabic, are complex languages for texting, people prefer typing on phablets’ larger screens and virtual keyboards,” explains Lee.

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It may take some time before clear winners emerge for enterprise use among the various sizes of tablets and smartphones. CIOs may need to experiment to see which devices and sizes are the best fit for specific roles and activities within a company. The process will also require assessing the trade-offs between device standardization and BYOD with respect not only to costs associated with the devices themselves (purchases, maintenance, and support), but also with application selection and development.