Will tablet devices hurt sales of other devices? Not much
TweetFollow Us on Twitter

Will tablet devices hurt sales of other devices? Not much

A new study by Rethink Technology Research found that about three quarters of the sales of tablet devices, such as the iPad, will be at the expense of the purchase or upgrade of another device in many case one with higher price tags and margins than the tablet.

Vendors will hope these will be companion products, acquired in addition to a phone or notebook, but that means the prices have to be keen, to encourage consumers in a recession to invest in a non essential item, says the research group. Even Apple has come in with an iPad entry price far lower than most had expected, and a recent research note from Credit Suisse points out that Apple management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated). Remember, Apple slashed the price of the iPhone by $200 two months after it went on sale.

Apple stands to make margins of almost 43% on the new tablet, so has plenty of room for maneuvering, but this will be less true of many other players as competition mounts. Freescale is already gearing its smartbook platform at sub $199 devices.

The emerging device category will fall into three broad subsections, plus the ereaders. Although these are single function, they have established many of the norms for the broader market, such as embedded wireless connectivity and integrated content stores. And some vendors, like Amazon, will extend their ereader platform into more general purpose products.

The three multifunctional categories, which will overlap, are the tablet (single sided, large touchscreen product heavily geared to content consumption, from video to ebooks); the smartbook (often hinged, like a tiny netbook, with some local storage but optimized for web services as well as some downloaded content); the cloudbook (the newest category, to be pioneered by Google for its Chrome OS, and offering an ultrathin client with little or no local data and apps, doing everything online via the browser and attached to the cloud).

Squeezed prices and margins may be acceptable if these hybrid devices are incremental purchases, but even worse for the suppliers, this will not generally be the case, especially in the first few years. Until at least 2013, consumer spending will remain under pressure, and there will be insufficient confidence in the thin client/cloud usage model for many people to rely on a cloudbook or tablet as their only computer. As I've said before, devices such as the iPad are, for the majority of people, supplementary devices, not replacement devices.

These devices will total about 60 million unit sales by 2014 according to the Rethink survey, with a market value of US$13.5 billion in hardware terms alone, plus about half that much again in directly related content/app sales. Rethink says about three quarters of their sales will be at the expense of users investing in new computers, netbooks or phones, or upgrading the ones they have. But I disagree -- except in regard to netbooks.

-- Dennis Sellers

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Monolingual 1.6.4 - Remove unwanted OS X...
Monolingual is a program for removing unnecesary language resources from OS X, in order to reclaim several hundred megabytes of disk space. If you use your computer in only one (human) language, you... Read more
CleanApp 5.0 - Application deinstaller a...
CleanApp is an application deinstaller and archiver.... Your hard drive gets fuller day by day, but do you know why? CleanApp 5 provides you with insights how to reclaim disk space. There are... Read more
Fantastical 2.0 - Create calendar events...
Fantastical is the Mac calendar you'll actually enjoy using. Creating an event with Fantastical is quick, easy, and fun: Open Fantastical with a single click or keystroke Type in your event details... Read more
Cocktail 8.2 - General maintenance and o...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
Direct Mail 4.0.4 - Create and send grea...
Direct Mail is an easy-to-use, fully-featured email marketing app purpose-built for OS X. It lets you create and send great looking email campaigns. Start your newsletter by selecting from a gallery... Read more
jAlbum Pro 12.6 - Organize your digital...
jAlbum Pro has all the features you love in jAlbum, but comes with a commercial license. With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code!... Read more
jAlbum 12.6 - Create custom photo galler...
With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code! Beginner-friendly, with pro results Simply drag and drop photos into groups, choose a design... Read more
Lyn 1.5.9 - Lightweight image browser an...
Lyn is a lightweight and fast image browser and viewer designed for photographers, graphic artists and Web designers. Featuring an extremely versatile and aesthetically pleasing interface, it... Read more
Sublime Text 3080 - Sophisticated text e...
Sublime Text is a sophisticated text editor for code, markup, and prose. You'll love the slick user interface, extraordinary features, and amazing performance. Goto Anything. Use Goto Anything to... Read more
WALTR 1.0.11 - Drag-and-drop any media f...
WALTR is designed to make it easy to upload and convert any music or video file to an iPad or iPhone format for native playback. It supports a huge variety of media file types, including MP3, MP4,... Read more

Bio Inc's New Expansion is Infectin...
Bio Inc., by DryGin Studios, is the real time strategy game where you infect a human body with the worst virus your evil brain can design. Recently, the game was updated to add a whole lot of new features. Now you can play the new “Lethal”... | Read more »
The Monocular Minion is Here! Despicable...
Despicable Me: Minion Rush, by Gameloft, is introducing a new runner to the mix in their latest update. Now you can play as Carl, the prankster minion. Carl has a few new abilities to play with, including running at a higher speed from the start.... | Read more »
Dungeon of Madness (Games)
Dungeon of Madness 1.0.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.0 (iTunes) Description: Dungeon of Madness is an action game where you rotate tiles to create our own route. Help the hero by connecting the... | Read more »
Filters for iPhone (Photography)
Filters for iPhone 1.0 Device: iOS iPhone Category: Photography Price: $.99, Version: 1.0 (iTunes) Description: | Read more »
Jump'N'Shoot Attack (Games)
Jump'N'Shoot Attack 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: A mobile game for gamers! Join Louise Lightfoot, the legendary "Master of Jumping and Shooting", on her mission to save... | Read more »
Space Bounties Inc. (Games)
Space Bounties Inc. 1.4 Device: iOS Universal Category: Games Price: $1.99, Version: 1.4 (iTunes) Description: SuperGameDroid: 4/5 "Satisfying futuristic RPG combat, high replay value, and a heavy dose of nostalgia make Space... | Read more »
Gamebook: Pocket RPG (Games)
Gamebook: Pocket RPG 1.0.11 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.11 (iTunes) Description: Walk into the Land of Lanthir Lamath ruled by wicked skeletons and fight for your life in a thrilling adventure.... | Read more »
Kids Can Mix, Match, and Catch with Tata...
Tatadada MixMatch, by Tatadada Ltd, is a mobile version of the classic game of mix & match. The game uses brightly colored creatures to train your children's pattern matching skills and hand-eye coordination. It's aimed at children around age 5... | Read more »
The Trace: Murder Mystery Game (Games)
The Trace: Murder Mystery Game 1.2.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.2.0 (iTunes) Description: | Read more »
This Week at 148Apps: March 16-20, 2015
Spring Roars In At 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above... | Read more »

Price Scanner via MacPrices.net

Logitech Says MX Master Is Its Most Advanced...
Logitech’s new MX Master Wireless Mouse incorporates the best of Logitech’s many computer mouse innovations into a striking hand-sculpted design. The company claims that the MX Master creates a new... Read more
Save up to $300 on a new Mac, $30 on an iPad,...
Purchase a new Mac or iPad at The Apple Store for Education and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free,... Read more
Apple refurbished 2014 MacBook Airs available...
The Apple Store lowered prices on Apple Certified Refurbished 2014 MacBook Airs recently, with models now available starting at $679. An Apple one-year warranty is included with each MacBook, and... Read more
Mac Notebook Evolution; A Desktop Replacement...
More often than not right from the beginning, Apple’s Macs have tended to skew toward small. The original Macs were called “compacts,”, and notwithstanding a few exceptions like the honking Big Mac... Read more
13-inch 1.4GHz/128GB MacBook Air (Apple refur...
The Apple Store has Apple Certified Refurbished 2014 13″ 1.4GHz/128GB MacBook Airs available for $759 including free shipping plus Apple’s standard one-year warranty. Their price is $240 off original... Read more
YEP! Alternative Browser for iOS Now Supports...
Pfaeffikon, Switzerland based Power App AG has announced the release of an update to their Yep! Web Browser (v1.3.0) for iOS8 iPhone and iPad. Yep! hit the App Store shortly after the release of iOS... Read more
15-inch Retina MacBook Pros on sale for up to...
B&H Photo has the new 2014 15″ Retina MacBook Pros on sale for up to $250 off MSRP for a limited time. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $... Read more
Clearance 13-inch Retina MacBook Pros availab...
B&H Photo has leftover 2014 13″ Retina MacBook Pros on sale for up to $250 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.6GHz/128GB Retina MacBook Pro: $1098... Read more
Clearance 2014 MacBook Airs on sale for up to...
B&H Photo has MacBook Airs on sale for up to $180 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 11″ 128GB MacBook Air: $789.99 110 off original MSRP - 11″ 256GB... Read more
Apple refurbished Time Capsules available for...
The Apple Store has certified refurbished Time Capsules available for $100 off MSRP. Apple’s one-year warranty is included with each Time Capsule, and shipping is free: - 2TB Time Capsule: $199, $100... Read more

Jobs Board

*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - D...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Systems Engineer - Pre Sales, Educat...
…is responsible for proactively providing technical expertise to drive sales of Apple solutions into assigned accounts. The SE architects, validates, and assists in Read more
Sr. Technical Services Consultant, *Apple*...
**Job Summary** Apple Professional Services (APS) has an opening for a senior technical position that contributes to Apple 's efforts for strategic and transactional Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.