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Upside Growth for Tablets, the Cloud and Mobile Apps

Several years after the first introduction of prototype concept devices known as Mobile Internet Devices (MIDs), the tablet fulfilled the promise of this product category.

The tablet market reached an inflection point through the combination of a new device (the Apple iPad), new business models supported by mobile phone service providers, and new usage models through cloud computing and mobile applications (apps).

As we enter the last half of 2011, In-Stat forecasts upside growth opportunities as a result of price degradation, and new tablets from major consumer electronic (CE) companies -- such as Samsung, Motorola, BlackBerry, LG, and HTC.

According to the latest market study by In-Stat, the growth trend will help push tablet shipments toward 250 million units in 2017.

“The tablet market and its associated ecosystem are still evolving. Over the next few generations we will see more differentiation between devices that are targeting different market segments and usage models. In addition, competitive device and service pricing will bring tablets into the mainstream consumer and enterprise markets,” says Jim McGregor, Chief Technology Strategist at In-Stat.

Tablets are joining an array of smart-connected devices that allow users almost unlimited access to content and communications.

These new devices mark a significant change in the value proposition of the electronics industry -- where the content and applications are now the key differentiators or innovation drivers.

In-Stat's latest market study findings include:
  • In the consumer segment, tablets are competing against all CE and computing devices, not just PCs.
  • Despite similarities in system hardware and software architecture, usage models among mobile devices vary by device type.
  • The combination of mobile applications, new semiconductor technology, and the full Internet experience are key factors in empowering the tablet market.
  • The 9-inch to 11-inch form factor is forecasted to be the dominant tablet form factor with 56 percent of the market in 2017.
  • iOS and Android are forecast to maintain over 90 percent of the market share with Windows as a distant third.
  • Not supporting one of the leading OS platforms is likely to lead to the failure of several companies in the tablet market, due to lack of application support.
  • Wireless operator business models could have a tremendous impact on future tablet demand.

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