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Netbooks, MIDs and Mobile CE:A Collision of Form Factors and Use Cases

Kevin Burden

Practice Director – Mobile Devices


•Segmenting the mobile device industry

•Understanding the catalysts of segment collisions

•Affects of pricing and platforms on market confusion

•Consumer desires for MIDs and Netbooks

•Netbooks, MIDs, and Mobile CE: Primary, Companion, or Secondary Device?

Presentation OverviewPresentation Overview


Mobile Computing LandscapeMobile Computing Landscape

• Between the Laptop PC and the Smartphone lies Mobile Computing

MID Superphone

Connected NavigationNetbook

Smartbook

eBook Reader

UMPC

Portable Media Player


Blurring the Device Lines

• Smartphones, MIDs, and Mobile CE Devices Are Blurring the Lines:– What is the difference between a large touchscreen smartphone with a capable

Web browser and an MID that supports cellular voice?– What is the difference between a media-centric MID and a mobile PMP (think

iTouch with WWAN)?– What is the difference between a navigation-focused MID and a mobile PND

(think Tom Tom) with a great Web browser?

• How to Look at the Device:– What is the primary function?– What is the usage model? – What platform is behind the device?

• Multiple Device Challenge– Will targeted application devices increase acceptance?


What determines device class?What determines device class?

?

Smartphone

Netbook

MID

UMPC

Use Case

Marketing

Capabilities

Form Factor

© 2009 ABI Research abiresearch.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the express written permission of Licensor.


Segment CollisionsSegment Collisions

Browser, GPS, Wi-Fi, Media Player, Camera

Voice

Size

Use Case

Smartbook

3G / 4G

Substitute or Additive

MIDMID NetbookNetbook

LaptopLaptopSmartphoneSmartphone

Size / Form



Mobile Device Forecast ComparisonMobile Device Forecast Comparison

0

50

100

150

200

250

300

2008 2009 2010 2011 2012

Smartphone

MID

Mobile CE

Netbook

UMPC

•Smartphones represent the largest device group in terms of shipments

•MIDs are expected to show strongest growth over next three years

•Netbooks and Smartbooks have begun displacing laptop sales



Mobile Consumer ElectronicsMobile Consumer Electronics


Device ASP TrendsDevice ASP Trends

•Narrow Price Gap Between Smartphones and Netbooks

•Value and Use cases need to be understood by consumers

•Smartphones, Netbooks, and MIDs may have carrier subsidies

Economic downturn is not the only driver for Netbooks



Mobile Internet Devices – by the RegionsMobile Internet Devices – by the Regions


OS Landscape – MIDsOS Landscape – MIDs

• Myriad devices will be offered, not just one form factor.

• The mobile OS must have commonality, in terms of user experience and feel, across MID, CE, and mobile phone sectors.

• Power must be optimized and a power-friendly OS is a plus.

• Silicon solutions in this market scale between different market segments.

• RAM will become cheaper over time as processors become more powerful and cheaper, which could enable a PC OS to be installed in MIDs.



Netbooks – by the RegionsNetbooks – by the Regions


OS Landscape – NetbooksOS Landscape – Netbooks

• The majority of netbooks have shipped with Windows XP

• familiarity of priority audience •affordability of license

• Windows 7 is being introduced in October on select netbook models; replacing Windows XP and Windows Vista SKUs

• Android to debut on netbooks starting Q4’2009

• Chrome OS from Google expected to be introduced into the PC Linux segment in H2’2010.



Interest in NetbooksInterest in Netbooks

0%

5%

10%

15%

20%

25%

30%

35%

AlreadyOwn

Extremely Very Somewhat Not Very Not at all

Q : Based on the description and assuming the price was right, how interested would you be in purchasing a Netbook ?

N=1000

Nearly a third having only mild interest in the Netbook category, suggests additional education and positioning is needed to explain the value of Netbooks to priority audiences

The relatively high PC penetration in the United States suggests that Netbooks will be a secondary machine for the majority of users

Budget-sensitive users or those looking to replace an existing computer may consider a Netbook as their primary system



N=662

Netbook Use CaseNetbook Use Case

Q : Which software applications would you be likely to use on your Netbook?

Netbooks are marketed as “connected” devices, using either Wi-Fi for WLAN or 3G/4G modems for WWAN access. The selection of email and Web browsing as the top two applications for Netbooks is in line with this expectation.



Are Netbooks Your Primary or Are Netbooks Your Primary or Secondary Computing Device?Secondary Computing Device?


0%

20%

40%

60%

80%

100%

Primary - it is my only computer Secondary - A desktop or laptop is the primary computer

Secondary A wireless smartphone is the primary

computing device

Not sure

Are Netbooks your Primary or Secondary Computing Device?

Own a Netbook (n=42) Source: ABI ResearchSU-ETEC-102; 7/09


Interest in MIDsInterest in MIDs

Q : Based on the description and assuming the price was right, how interested would you be in purchasing a MID ?

N=1000

Quick, “snack” size applications and uses are typical for handheld MID owners.

The smaller screen and keyboard size make MIDs less desirable for applications that require significant content creation.

Consumer interest in MIDs are at price points closer to smartphone handsets than laptop computers.

The network operator channel is expected to play a significant role in the sale of MID products.



MID as replacement devicesMID as replacement devices

While platform vendors like Intel and TI (Texas Instruments) have spent time and resources developing the MID ecosystem, few products have appeared throughout 2009

MIDs are more likely to be considered when looking to replace a handset

It is unlikely that consumers will consider MIDs as an alternative to a laptop computer

Q : Would you use your MID as a replacement for your cell phone or laptop computer; or would you use your MID in addition to your cell phone or laptop computer?

N = 543

Primary Device Secondary Device



•Similarities in Form Factor, Operating System, Price, and Functionality have created market confusion

•Mobile CE devices primary and secondary status is closely tied to regional and economic conditions

•A “good enough” consumer attitude is allowing for the creation of low-cost mobile CE segments

•Devices in adjacent segments must face new competitive realities

•OS / Platforms must increase consideration of multiple device formats.

SummarySummary


Thank You

• Still have questions? Visit www.abiresearch.com

• Thank you for your time,

Kevin BurdenPractice Director – Mobile DevicesABI [email protected]

www.abiresearch.com +1.516.624.2500 netbooks, mids and mobile ce: a collision of form factors and...

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