For the first time in Australia and New Zealand, all three mobile devices market – notebooks, tablets and mobile phones – declined for two consecutive quarters since 2013 Q1.

"While it is not surprising that the notebook market recorded another quarter of market contraction, the consecutive tightening of tablet and mobile phones market is a first for ANZ," says Amy Cheah, senior analyst, IDC.

"This does not necessarily mean these markets have hit saturation point, but it may be an early indication of device fatigue and commoditisation as these newer markets mature.

"For hardware vendors, it will be increasingly challenging to find differentiation, especially now with software vendors such as Microsoft and Google making a move into the hardware space."

Softening of the Australian economy also weighed down on demand particularly for notebooks and tablets.

Retailers remained heavily stocked with inventory since Q4 last year, while the end of financial year did not spur consumer spending as much as past years.

Local channels and retailers were also reluctant to take in new shipments to minimise risk prior to their fiscal year end quarter.

In contrast, the New Zealand market faired more positively, with PCs recording a 12% growth off the back of improving retail sales and business confidence.

"Acer was the standout vendor in the PC market in 2013 Q2," Cheah says.

"The vendor gained volume share through heavy discounting of its notebooks in retail, but at the cost of profitability. In the tablet market, demand for non-branded low-cost tablets has gradually waned since peaking last Christmas season.

"Apple, on the other hand, continues to see its share eroded by Android tablets, particularly from Samsung, and increasingly Windows tablets."

A total of 4.77 million units of client devices including desktops and mobile devices were shipped in 2013 Q2, but tablets took the biggest hit with a 20% quarter-on-quarter dip compared to a 6% decline in notebooks and 5% decline in mobile phones which consist of features phones and smartphones.

Interestingly, the desktop market recorded an 8% sequential growth after several quarters of decline, driven by strong vendor push of the all-in-one desktop form factor and a seasonal pick up in the Australian government desktop refresh at the end of financial year.

ANZ client devices market share:

1 Mobile Phones 56%2 Tablets 19%3 Notebooks 15%4 Desktops 10%

* Mobile phones here consist of features phones and smartphones.