Tablets Going Mass Market

Amar Babu,
Managing Director,
Lenovo India

Until a couple of years ago, tablets were on the agenda of very few. They were finding their use mainly in a handful of business applications like package delivery, warehouses and hospitals. But in a span of two years then scene has undergone a sea change. With the advent of iPad, the landscape has changed drastically and tablets like the iPad are now much sought-after commodity. 

Consumer tablets differ from their industrial counterparts in that they are normally not full-fledged computers with a PC-style operating system. Instead, they use a simplified operating system such as Apple's iOS, Google's Android, or Palm's webOS. Besides Web browsing, consumers use their tablets for multimedia applications such as listening to music, watching videos, updating social media, reading e-books, and playing games.

Today, tablets are the hottest PC form factor around, and just about every hardware manufacturer has thrown its virtual hat into the tablet arena. This has propelled research firms like IDC and Forrester Research Inc. To revise their tablet revenue forecasts upward. There seems to be no end to the growth in sight.

Last September, for example, IDC forecasted 13.1 million tablets would be sold worldwide in 2010, growing to 57 million worldwide by 2014. The research firm revised the 2010 figure in a report published in January 2011, to nearly 17 million units, and forecasts 44.6 million will ship in 2011, with the U.S. representing nearly 40 percent of the total. In 2012, worldwide shipments will rise to 70.8 million units.

Rapid growth in the Tablet market is being driven by the demands of today's mobile society. Consumers and enterprises alike are seeking real-time, on-demand access to content, the internet, computing and communication tools, and applications (apps). The Tablet has emerged as the perfect device to provide access to these features. In the next 5 years, total shipments of Tablet computers are expected to increase at a compound annual growth rate (CAGR) of 56%, with shipments rising from 16.1 million units in 2010 to 147.2 million units in 2015. “Tablets computers are now a main component of the mobile computing market, and their impact will continue to expand in the coming years,” says Sanjay Yadav, Director, Sales & Distribution, Consumer and SMB, Dell India. 

Forrester also just revised its U.S. consumer tablet forecast for 2010 upward to sales of 10.3 million units, and analyst firm expects that number to more than double this year to 24.1 million units. Apple will be a clear tablet leader. That hasn't stopped Acer, Dell, HP, Lenovo, Samsung, Sony, and Toshiba (plus lots of unknowns) from has jumping the bandwagon. By 2015, Forrester estimates 82 million U.S. consumers-one-third of all U.S. online consumers-will be using a tablet, and not all of those will be iPads.

As the number of companies entering the tablet landscape increases, this will drive down prices. This in turn will drive up demand. This is truer in the case of cost-conscious consumers for whom an iPad is a strict no. Once used by the elite consumers, tablets are going mass market. 

TABLETS AND THE CHANNEL

As vendors are jockeying for space in tablet market, there is strong debate as to whether the channel is missing out on a lucrative business opportunity. Generally speaking the role of channel is limited so far as consumer computing devices are concerned. 

With the settling of the tablet market, the role of the channel partners will certainly increase.  They will be called upon for advice on how to integrate tablets into clients' computing environments, or how to secure the devices. Since not everyone has the go-to-market capabilities of a big vendor, the need for resellers will be felt. And for reaching the SME space channel are necessary. 

Tablets and the SMEs 

The real test of Tablet will be in the SMB space. However there is every possibility that SMBs will embrace tablets when they are light, mobile, and affordable. 

 “We don't see tablets replacing desktops and notebooks, the target audience for these devices is different compared to the audience for tablets as the products cater to different needs. However, we see a strong demand for the Tablets in the near futures” says Alex Huang, Country Head -- India, System Business Group, ASUS. 

Following the sensation Apple's iPad has created, every company that manufactures a computer (and quite a few that don't) has thrown its proverbial hat in the Tablet arena. Apple is the clear leader, of course, but other players are coming on strong. “The Dell Streak has been well accepted by consumers and we have seen a good response to Dell Streak in India,” says Sanjay Yadav of Dell. 

Finally...

Several manufacturers are adopting Google's Android software for tablets. There will be many vendors rolling out Android tablets over the next couple of years. According to Karwal of Milagrow, by 2015 60 percent of the Tablets will have Android.  Given Apple's domination of the market, vendors will have to sweat it out to gain significant market share. A fair share of tablet sales will continue to be direct from supplier to service provider and then to the end user.

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J. S. Shin,
President & CEO,
Samsung South West Asia

In India Samsung announced the launch of GALAXY Tab 750 and GALAXY Tab 730 in August. The thinnest mobile tablets, measuring just 8.6 millimetres, feature Samsung's own TouchWiz user interface implemented on the Android 3.1 (Honeycomb) platform, offering faster and smoother transitions between different applications. It allows more intuitive navigation to and from home screens and broader support of USB accessories.

"The GALAXY Tab 750 and 730 are remarkable examples of Samsung's continuous innovation and commitment to designing products that fit the unique needs of consumers across the world. By combining Samsung's innovations in design and display with our exciting new user experience, we have created a new class of products that will lead the tablet market in India as in the world," said J. S. Shin, President & CEO, Samsung South West Asia.

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Sanjay Yadav,
Director, Sales & Distribution,
Consumer and SMB,
Dell India. 

“Tablet computers are now a main component of the mobile computing market, and their impact will continue to expand in the coming years.

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Rajeev Karwal,
Founder & CEO,
Milagrow Business and Knowledge Solutions.

Milagrow Business and Knowledge Solutions, India's leading provider of tech-enabled solutions for growing businesses, has launched the World's first TabTop PC. Powered by a 1.2 GHz A2918 cortex processor and 1GB DDRAM, the Milagrow TabTop PC is a smartly-built, full-featured, fully loaded, fast and portable device that offers every feature a professional may need in today's tech savvy business environment.

“Milagrow TabTop PC redefines what the tablet experience should be. Extensive research for more than 18 months went into making this tablet far superior to even the more premium priced tablet players. These TabTops is the perfect alternative to a desktop, laptop or other tablets for all your computing, information, networking and entertainment needs,” said Rajeev Karwal, Founder & CEO, Milagrow Business and Knowledge Solutions.  

“Most tablet makers unfortunately are concentrating on making cheaper, compromised devices which will neither sell nor solve the huge latent need amongst professionals”  Karwal added.

Deepak Singh 
edit@varindia.com