Wednesday, March 10, 2010

Tablet Success Depends On Complete Ecosystems

Duh, right? Just look at the success of the iPod and now the iPhone. Apple has created a complete ecosystem of connection, content, and services. In-Stat's latest report on this segment suggests that this is also going to be key to determine the success of tablets.

This is why Apple has been furiously trying to get the studios to lower prices, be open to new revenue models, and opening up content on the iTunes store. This is why Nokia and Google are trying to add their own services to compete effectively.

In-Stat, really pointed out two factors but I combined both into one. They pointed out that Kindle has a wireless connection, making it a complete system, more so than the iPhone. The Kindle has wireless connectivity while the iPhone requires a paid service. That is true but once Kindle emerges from the depth of Amazon's own R&D labs, it will be more hungry for content, which means a more robust wireless service. And that would make the Kindle less appealing in this regard.

The second matter In-Stat reported on is the ecosystem. Of course, they don't say it like that.

They did make one interesting point that Steve Jobs brought up during the iPad event. The tablets sits snuggly between the smartphone and the laptop, making it potentially very attractive to consumers because of portability, and, in my opinion, cost of entry.

It also examines the following points:
  • Examining the evolution of the mobile electronics market
  • Comparing tablets to other mobile devices
  • Evaluating the keys to success in terms of technology, content/applications, wireless services, and business models
  • Providing an outlook for both consumer and commercial segments of the market
  • Analyzing the bill-of-materials of a tablet and forecasting the future trends
  • Examining the initial products and strategies of some of the initial market entrants, such as Apple.
I do believe this isn't just my inner-"geek-wannbeness" talking but I am very excited about the tablet segment of the mobile market.  Since seeing its descendants on television and movies, and my re-imagining of how tablets can play a viable part on Stargate Atlantis, I've been waiting for the days for powerful tablets with useful applications, wireless Internet access, and long battery life (longer the better).

There is a lot of pinned up demand for just such a device.  With Apple's own silicon, Nividia, and Qualcomm's chips, it looks like it'll be for real this time around.  Microsoft and Intel made a valiant attempt with the UMPC a few years back.  I think this time, it ought to work.

More at In-Stat.

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