The iPad promises to energize the emerging tablet PC segment and the opportunities extend well beyond just Apple. Market research firm In-Stat identifies the potential unit Total Available Market (TAM) for tablets could be as high as 50 million in 2014, but the success is highly dependent upon two key success factors.
The first requirement is to follow other successful devices in the market by offering a complete solution that includes the device, the wireless service, and the content. The best and most recent successes in the mobile market highlighting the value of a complete solution is the Amazon Kindle e-reader. The iPhone comes close but still requires a separate wireless service contract.
The second requirement is to find the right combination of new technology, content, applications, and services that provide a unique usage experience and then combine it with the appropriate business model. Finding the right business model for monetizing device, connectivity and content has become a critical element in successfully launching new platforms. The report provides different growth scenarios for both commercial and consumer applications depending on the business models adopted.
Recent research by In-Stat found the following:
- Positioned between smartphones and PCs, tablets are attracting the interest of consumer electronics (CE) and computing OEMs.
- Thus far, only Apple and ICD have indicated carrier strategies, and only Apple offers a solution that includes content and applications.
- None of the tablets announced thus far offer all the benefits of e-readers or computing platforms, but new technologies and applications could help create a unique value proposition.
- The potential semiconductor opportunity in Table PCs is over $4.1 billion in 2014.
In-Stat
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