Microsoft failed to create a buzz around the tablet PC. Apple, with the iPad, has resurrected this form factor. And around 10 million users are expected to buy tablet PCs this year. Here’s why
They are neither full-fledged laptops nor small enough to be smartphones. But they are sleek, light to ferry around, aesthetic to look at, sport touch screens instead of built-in keyboards and entertain users the day long with a host of goodies like ebooks, music, videos, games and internet surfing.
It’s hardly a surprise, then, that consumer electronic majors like Apple, HP, Dell, Lenovo, Acer, Asus, Fijitsu, IBM, LG Electronics, Toshiba and Panasonic have either recently introduced, or are talking about launching, these devices — known as tablet PCs — in the coming months.
Apple alone would have sold four million iPads by now, analysts say. Towards the end of June this year, the tech major had sold its three millionth iPad — just 80 days after the product’s launch in the US. Lenovo’s Consumer Business Group, too, has revealed its intention to deliver an Android tablet by the end of this year. To be known as LePad, Lenovo is reported to be taking advantage of Apple’s negligible presence in China.
Then there’s the Dell Streak which is a 5-inch Android-based tablet. It has built-in Wi-Fi, Bluetooth and 3G connectivity. The device, according to Dell India Executive Director Mahesh Bhalla, hits the sweet spot between traditional smartphones and larger-screen tablets. The price of the unlocked version of the Dell Streak in the UK is £449 (Rs 37,000) including VAT.
Motorola and Verizon, meanwhile, are reported to be working jointly to produce a tablet specifically for watching television content. The tablet is said to have a 10-inch screen and will use Google’s Android operating system. The tablet is said to be “thinner and lighter than the iPad”. There will also be two cameras, one front-facing for video conferencing and another on the back for photos. The news was not confirmed or denied by Verizon.
Many other consumer electronics companies are talking of making competing media tablets, including Cisco, Hewlett-Packard, Dell and most recently BlackBerry-maker Research In Motion. Chinese telecom supplier Huawei, for instance, has a touchscreen 7-inch tablet which runs on the Android OS and is powered by Qualcomm’s 1Ghz Snapdragon processor. The tablet was exhibited at CommunicAsia this June. It has both 3G and Wi-Fi as well as Bluetooth and a microSD card.
Closer home, Olive Telecom unveiled the 3G tablet, OlivePad-VT100, for Rs 25,000 in India this July. A rival to Apple’s iPad, the company expects to sell around 100,000 units in the next six months after the commercial launch this month. Then you have the Adam Tablet which is currently under development by a Hyderabad-based Notion Ink.
Founded by Rohan Shravan, a 24-year-old engineering graduate from the Indian Institute of Technology-Kharagpur, the Adam Tablet is touted to be an ‘iPad killer’. “You will see the Adam Tablets in India by the end of this year. The pricing of the highest variant will be lower than that of the lowest iPad variant,” says Shravan. Meanwhile, Asus too is planning two versions of the 3G-enabled Eee Pad tablet running on Windows 7 — one will sport a 10.1-inch display and the other a 12-inch display. The launch date has not been confirmed.
The first mover
The term ‘tablet PC’ was made popular by Microsoft way back in 2001 when it announced a product that was defined as a pen-enabled computer conforming to hardware specifications devised by it and running mostly a licensed copy of a “Windows XP Tablet PC Edition”. The software giant, however, was not able to capitalise on its first mover advantage. Analysts attributed the failure to bad timing, high pricing and poor user interface (UI) design.
This January, Microsoft had another go at the tablet. HP’s Slate device was demoed by Microsoft CEO Steve Ballmer at January’s Consumer Electronic Show (CES), along with tablets from other vendors. Touting the HP Slate 500, an HP website page describes the device as powered by Windows 7 Premium and sporting an 8.9-inch screen with internet access and two cameras (still and video).
With the Apple iPad, though, tablet or media tablet PCs are making a comeback. Media tablets typically do not include built-in hardware keyboards but use a stylus/pen or finger for navigation and data input. They provide a broad range of applications and connectivity, differentiating them from primarily single-function devices such as ereaders (Amazon’s Kindle, for instance). They are primarily marketed as multifunction entertainment devices, but productivity applications will eventually be available to support consumer and enterprise users.
International Data Corporation (IDC) analysts contend the nascent market for media tablets, fostered by the launch of Apple’s iPad, will be driven by the device’s attributes as a content consumption platform and the compelling applications and services that will be created to take advantage of them.
“These are early days for media tablets, an altogether new device category that takes its place between smartphones and portable PCs. IDC expects consumer demand for media tablets to be strongly driven by the number and variety of compatible third-party apps for content and services,” notes Susan Kevorkian, programme director, mobile media & entertainment.
Apps on tap
The availability of apps unique to media tablets and that differentiate the experience of using one compared with a PC or smartphone will be crucial for driving consumer demand, say analysts. For instance, the reason for iPad’s success is that developers have created over 11,000 exciting new apps for it which take advantage of its Multi-Touch user interface, large screen and high-quality graphics. Moreover, iPad will run almost all of the more than 225,000 apps on the App Store, including apps already purchased for the iPhone or iPod.
Apple’s CEO, Steve Jobs, said in a statement in June: “People are loving iPad as it becomes a part of their daily lives. We’re working hard to get this magical product into the hands of even more people around the world, including those in nine more countries next month.”
As the category matures and more media tablet-optimised apps become available, IDC expects that media tablets will evolve beyond nice-to-have devices and become necessities for many consumers.
Companies like Dell think likewise. “The Dell Streak is a compact and powerful companion for people who want to expand their ability to access their digital lives on the go, and realise tomorrow’s technology today. The spacious 5-inch screen is ideal for experiencing thousands of Android market widgets, games and applications, all without squinting or compromising portability,” according to Bhalla. It is expected to be introduced in India soon but the company has not committed itself to any timeframe.
“Media tablets, such as the iPad and similar devices, will significantly detract from mini-notebook shipments in 2013 and onward, when we expect their prices to be lower and, more importantly, their functionality to be more similar to mini-notebooks,” says Raphael Vasquez, research analyst at Gartner.
In Gartner’s most-likely scenario, approximately 10 million media tablets are expected to ship in 2010. Media tablets will have a more substantial place in the market than tablet PCs. Annual worldwide tablet PC shipments will reach approximately 2 million units in 2010 and may not surpass 3 million units until after 2012.
“A tablet will not replace a laptop, netbook, or mobile phone, but will remain an additional premium or luxury product for wealthy industrialised markets for at least several years,” concludes ABI analyst Jeff Orr. He cautions, however, that the odds for new entrants are bigger in this market because existing vendors have already signed up agreements with various content providers and retailers.
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