Deloitte Predicts Tens of Millions Internet Tablets Will Be Sold in 2010

By Alexander Grundner | January 20th, 2010 (2) Comments

Analyst firm, Deloitte, predicts 2010 will be the break through year for Internet Tablets (aka WebPads, SmartPads, NetTabs, Slate). Reason being, device manufactures working on such devices have shifted the product’s focus from “work-oriented data-entry” to web browsing and media consumption. Deloitte also believes that manufactures are finally nailing down the form factor to an appropriate size that’s easier to handle and more appealing to the general consumer — something larger than a smartphone, but smaller than a notebook. On the negative side, Deloitte sees such Wi-Fi/cellular connected devices being more expensive than smartphones. I don’t agree, however, with the popular opinion that owners will want to pay up for a mobile broadband plan for their device, which can run from $40-60 a month. Wi-Fi should be sufficient for most users who plan on using their Internet Tablet around the home, in a coffee shop, library, or workplace. As for the “tens of millions” prediction, that seems a bit optimistic (most likely based on this lead) considering most people haven’t seen, used, or have been able to purchase this new media-centric generation of Internet Tablets.

Aside: In case you didn’t see them, there were a few hybrid netbook/tablets shown at CES by Lenovo (IdeaPad U1) and Freescale (Smartbook Tablet) — similar to Always Innovating’s Touch Book (below) with detachable keyboards.

Smaller than a netbook and bigger than a smartphone: net tablets arrive

Published Monday, January 18, 2010

NetTabs may turn out to be “just right” for many users in 2010. This Goldilocks of devices—not too big, not too small—is expected to offer an appealing balance of form and function going forward.

Made for the consumer

With a new form factor and significant processing capacity, connected portable devices will likely be purchased by tens of millions of people in 2010. Called Net tablets, or netTabs, these devices have an advantage over smartphones—which are small for watching videos or web browsing—and notebooks, netbooks, and ultra-thin PCs, which are too heavy, or expensive.

Previous attempts at the tablet form factor failed for many reasons: the graphics, software, and user-interface were underwhelming, there was poor connection to cellular or WiFi networks, and they were used largely for work-oriented data-entry. By contrast, a consumer-focused device primarily for media and Web browsing is much more likely to be accepted by the market.

2010 is likely to see a proliferation of netTabs from two sources: tablets designed to be tablets and standalone single-purpose devices that will be repurposed. Although none has yet launched, leaked information suggests that custom-designed tablets are likely to be released by start-ups, some existing phone and PC makers, netbook leaders, and various smaller manufacturers using open-source operating systems.¹

Bottom line

Since netTabs are primarily networked devices, and are designed to connect wirelessly over WiFi, wireless carriers are likely to try to push users off cellular networks and onto WiFi as much as possible. NetTabs are also more expensive than most smartphones, and consumers are likely to demand big upfront subsidies.
NetTabs are a more premium product and are likely to require higher-end chips, benefiting chipmakers as well as touch screen and flash memory manufacturers.
Existing PC and smartphone makers are unlikely to be threatened by netTabs: PC-like text or data entry would be cumbersome and netTabs are not portable enough to replace a phone-sized device. However, the standalone eReader market may be vulnerable.

¹1Archos 5 Internet tablet Android-based PMP, Register Hardware, 11 November 2009:http://www.reghardware.co.uk/2009/11/11/review_media_player_archos_5/and Vega tablet beats Apple and Crunchpad, Wired, 13 November 2009:http://www.wired.com/gadgetlab/2009/11/vega-tablet-beats-apple-and-crunchpad/

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