Detachable laptops will buoy PC market through 2021

The future of the computer is detachable. At least that appears to be the case for some portion of the market. IDC projects that detachable laptops will have a CAGR of 21.2 percent between 2016 and 2021. This is a rosy outlook for a market segment that declined 26.1 percent in the fourth quarter. IDC attributes this to a lack of product refreshes. Microsoft, for example, held off refreshing its popular two-in-one Surface tablets and Surface Book detachable laptop last year. Companies were likely waiting on new processors from Intel.

Tablets have also had a hard time lately, but IDC expects tablets to return to growth in the next five years. Meanwhile, detachables are projected to become an important part of the laptop market. This does not mean they will replace traditional notebooks, but the ability to convert a laptop into a tablet is a compelling feature for many consumers. Even so, senior IDC research analyst Jitesh Ubrani said, "Regardless of what marketers are saying, detachable tablets are simply not putting pressure on notebooks yet." In 2016, detachables were 4.9 percent of the PC market whereas notebooks and mobile workstations were 36 percent.

By 2021, detachables are expected to be doing much better. IDC projects detachables will have risen to 13.4 percent of the market and other laptops will make up 38.9 percent. Those are the only two market segments expected to grow, though. Through 2021, desktops and slate tablets are expected to decline 2.8 and 6.5 percent, respectively.

This means detachable laptops will play an important role in the PC market in the coming years. Without them, the traditional PC market is seen to slip 0.6 percent, but projections turn positive when detachables are added in, with a CAGR of 1.8 percent.

While tablets may not have been the savior of the computing market that many people thought, the form factor has changed the market. Microsoft's response to Apple helped make detachables a practical form factor from the low- to the high-end of the market. This is why Lenovo can sell a $200 detachable laptop and Microsoft can sell its own detachable laptop for seven times the price. It is a good time for China suppliers in the Windows tablet and detachables markets.