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

 
AAPL
$100.57
Apple Inc.
+0.04
MSFT
$44.95
Microsoft Corpora
-0.38
GOOG
$584.49
Google Inc.
-2.37

MacTech Search:
Community Search:

Software Updates via MacUpdate

Tidy Up 3.0.15.0 - Find duplicate files...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Parallels Desktop 10.0 - Run Windows app...
Parallels Desktop is simply the world's bestselling, top-rated, and most trusted solution for running Windows applications on your Mac. With Parallels Desktop for Mac, you can seamlessly run both... Read more
Apple Final Cut Pro X 10.1.3 - Professio...
Apple Final Cut Pro X is a professional video editing solution.Completely redesigned from the ground up, Final Cut Pro adds extraordinary speed, quality, and flexibility to every part of the post-... Read more
Apple Compressor 4.1.3 - Adds power and...
Compressor adds power and flexibility to Final Cut Pro X export. Customize output settings, work faster with distributed encoding, and tap into a comprehensive set of delivery features. Powerful... Read more
Chromium 36.0.1985.143 - Fast and stable...
Chromium is an open-source browser project that aims to build a safer, faster, and more stable way for all Internet users to experience the web. FreeSMUG-Free OpenSource Mac User Group build is... Read more
Macgo Blu-ray Player 2.10.6.1691 - Blu-r...
Macgo Mac Blu-ray Player can bring you the most unforgettable Blu-ray experience on your Mac. Overview Macgo Mac Blu-ray Player can satisfy just about every need you could possibly have in a Blu-ray... Read more
Apple Motion 5.1.2 - Create and customiz...
Apple Motion is designed for video editors, Motion 5 lets you customize Final Cut Pro titles, transitions, and effects. Or create your own dazzling animations in 2D or 3D space, with real-time... Read more
A Better Finder Rename 9.39 - File, phot...
A Better Finder Rename is the most complete renaming solution available on the market today. That's why, since 1996, tens of thousands of hobbyists, professionals and businesses depend on A Better... Read more
PopChar X 6.6 - Floating window shows av...
PopChar X helps you get the most out of your font collection. With its crystal-clear interface, PopChar X provides a frustration-free way to access any font's special characters. Expanded... Read more
MacUpdate Desktop 6.0.2 - Install Mac ap...
MacUpdate Desktop 6 brings seamless 1-click installs and version updates to your Mac. With a free MacUpdate account and MacUpdate Desktop 6, Mac users can now install almost any Mac app on macupdate.... Read more

Latest Forum Discussions

See All

Cubic Castles Review
Cubic Castles Review By Rob Thomas on August 20th, 2014 Our Rating: :: CASTLE CRAFTINGiPad Only App - Designed for the iPad Some ridiculously frustrating camera issues aside, Cubic Castles is a pretty neat, voxel-based crafting... | Read more »
Space Colors – Tips, Tricks, Strategies,...
Hello Cadets: Want to know what we thought about this hectic space combat/roguelike? Check out our Space Colors review! Space Colors is a cool shooter/roguelike from Team Chaos. You travel from planet to planet across a huge galaxy and complete a... | Read more »
Tap Sports Baseball – Tips, Tricks, and...
Tap Sports Baseball is a pretty simple game to learn, but that doesn’t mean it’s an easy game to master, by any means. To start your batting career off well, we thought we’d give you the heads up on some handy tips and tricks. Hey Batter-Batter:... | Read more »
Tap Sports Baseball Review
Tap Sports Baseball Review By Jennifer Allen on August 20th, 2014 Our Rating: :: LET'S PLAY BALLUniversal App - Designed for iPhone and iPad Tap Sports Baseball is briefly fun but lacks some important features.   | Read more »
Earn to Die 2 Set to Drive in to the App...
Earn to Die 2 Set to Drive in to the App Store Later This Year Posted by Ellis Spice on August 20th, 2014 [ permalink ] Not Doppler has announced that Earn to Die 2, a sequel to their successful game | Read more »
Frontier Heroes Review
Frontier Heroes Review By Andrew Fisher on August 20th, 2014 Our Rating: :: BLAZES NO TRAILSUniversal App - Designed for iPhone and iPad Despite awesome visuals and great music, Frontier Heroes just doesn’t quite deliver enough fun... | Read more »
Echo Prime is Now on Sale for $0.99
Echo Prime is Now on Sale for $0.99 Posted by Jessica Fisher on August 20th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Star Realms Review
Star Realms Review By Andrew Fisher on August 20th, 2014 Our Rating: :: A STAR IS BORNUniversal App - Designed for iPhone and iPad Star Realms is an excellent adaptation of an outstanding deck-builder. With great visuals and an... | Read more »
This. Is. SPRINGFIELD! War comes to The...
This. Is. SPRINGFIELD! | Read more »
One Tap RPG Review
One Tap RPG Review By Campbell Bird on August 20th, 2014 Our Rating: :: DUNGEON SLIDERUniversal App - Designed for iPhone and iPad This casual arcade game introduces some very light rpg elements into its fantasy-themed pachinko... | Read more »

Price Scanner via MacPrices.net

Apple now offering certified refurbished 2014...
 The Apple Store is now offering Apple Certified Refurbished 2014 MacBook Airs for up to $180 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is... Read more
Best Buy’s College Student Deals: $100 off Ma...
Take an additional $100 off all MacBooks and iMacs, $50 off iPad Airs and iPad minis, at Best Buy Online with their College Students Deals Savings, valid through September 6th. Anyone with a valid .... Read more
MacBook Airs on sale for $100 off MSRP, free...
B&H Photo has three 2014 MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only. They also include free copies of Parallels Desktop and LoJack for Laptops... Read more
Razer Taipan Mouse For Gamers And Non-Gamers...
If you’re a serious gamer on either Mac or Windows PCs, a serious gaming mouse is a necessity for first-tier performance. However, even if like me you’re not much of a gamer, there’s still a strong... Read more
15-inch 2.2GHz MacBook Pro on sale for $1899,...
Adorama has the new 15″ 2.2GHz Retina MacBook Pro on sale for $1899 including free shipping plus NY & NJ sales tax only. Their price is $100 off MSRP, and it’s the lowest price available for this... Read more
Mid-Size Tablet Shootout Posted: iPad mini wi...
I ‘m curious about how many iPads Apple is actually selling these days. It’s been widely rumored and anticipated that new models with A8 SoCs, 2 GB of RAM, 8 megapixel cameras, and fingerprint... Read more
The 15 Biggest iPad Air Problems And How To A...
What’s this? Fifteen “biggest” problems with the iPad Air? Does that mean there are a lot of smaller problems as well? Say it isn’t so! My old iPad 2 has manifested no hardware problems in three... Read more
TYLT Syncable-Duo, 2-in-1 USB Cable With Appl...
TYLT has introduced the Syncable-Duo, a universal cable solution for charging and syncing data to smartphones and tablets. The Syncable-Duo eliminates the need for multiple cables by incorporating... Read more
Save up to $140 off MSRP with Apple refurbish...
Apple is offering Certified Refurbished iPad Airs for up to $140 off MSRP. Apple’s one-year warranty is included with each model, and shipping is free. Stock tends to come and go with some of these... Read more
2.5GHz Mac mini on sale for $549, save $50
B&H Photo has the 2.5GHz Mac mini on sale for $549.99 including free shipping. That’s $50 off MSRP, and B&H will also include a free copy of Parallels Desktop software. NY sales tax only. Read more

Jobs Board

*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
Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
*Apple* Solutions Consultant - Apple (United...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** Being a Business Manager at an Apple Store means you're the catalyst for businesses to discover and leverage the power, ease, and flexibility of Apple Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** At the Apple Store, you connect business professionals and entrepreneurs with the tools they need in order to put Apple solutions to work in their Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.