Smaller than a notebook computer with a larger screen than a Smartphone – this is how the authors of research into Mobile Internet Devices (MIDs) define them.
Consumers may still be relatively unaware of this emerging class of device, but that’s unlikely to be the case for long.
Global sales of MIDs expected to leap from 305,000 units shipped in 2008 to a projected 40 million in 2012, generating USD12 billion in revenue.
At least that’s the conclusion of a survey by semiconductor analysts Forward Concepts, which examined the market potential for MIDs and provided forecasts for both the devices and the integrated circuits that enable them.
It says that MIDs will have an unprecedented level of multimedia capabilities and typically will come in a tablet-like form factor.
“In our opinion, MIDs are not designed to replace mobile phones (or Smartphones) but to be used as companion devices,” the report states.
“They will rival notebook computers in features and capabilities yet come in a significantly smaller, lighter, fit-into-your-coat-pocket form factor, thus spurring the birth of a whole new class of mobile multimedia devices that fall in between a Smartphone and notebook/tablet computer.”
Titled Strategies & Insight into the Emerging Class of Mobile Internet/Multimedia Devices, the study says MIDs represent a new class of mobile communications and lifestyle devices.
Their hardware, software and form factor will require design from the ground up in order to meet market requirements for features, price, performance, and power requirements.
“The user interface will be key to success and will likely need to be capable of responding not only to touch-based inputs but also keep pace with other evolving input methods such as ones based on motion, gesture, placement, and so on,” the report continues.
“Although Apple’s 3G iPhone ploughs new ground in internet access, user interaction and utility, we don’t consider it to be a MID, since we believe a true MID also requires a larger (4- to 6-inch) screen with higher resolution (VGA), TV out and optional Mobile TV capabilities.”
Integrated circuits for MIDs are forecast to grow from USD 29 million in 2008 to USD 2.6 billion in 2012, with Texas Instruments and Qualcomm described by the survey as being the two best-positioned non-X86 semiconductor vendors for supplying stand-alone applications processors for all classes of MIDs.
It says Intel has a much better shot at UMPCs, being predominantly an enterprise play, where x86 compatibility is important, and with battery life expectations in line with notebooks.
Tag: market-data
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The future is bright for new breed of handheld multi-media devices pitched between the iPhone and notebook computer
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Surging demand for mobile connectivity and services such as HD streaming IPTV poses dilemma for broadband network operators in Europe
The number of notebook PCs with HSPA/LTE mobile broadband connectivity in Europe will grow from 8.4 million in 2007 to 49 million in 2013, according to researchers.
A study by analyst firm Berg Insight says the development will be driven by consumer demand for ubiquitous internet access.
It forecasts that rather than replacing fixed networks for internet access, mobile broadband will be a complementary access technology to the connection available at home.
But Tobias Ryberg, a senior analyst at Berg Insight, said the explosion in network utilisation – which equates to a compound annual growth rate (CAGR) of 34.1 – will present the mobile network infrastructure with a “formidable challenge”.
As embedded HSPA/LTE chipsets gradually become a standard feature in notebook PCs designed for the European market over the coming three to five years, end-users will simply need to insert a SIM-card into their computer to get online at virtually any location.
“Every mobile broadband service provider has a dilemma,” he said. “On the one hand they have a highly attractive proposition – a novel mobile service with high ARPU.
“On the other hand, the very popularity of the service stretches the mobile network infrastructure to its utmost limit – threatening to degrade the level of service for all subscribers.”
Mobile data traffic, primarily generated by USB-sticks and PC-cards, already exceeds mobile voice traffic in terms of volumes on advanced markets.
In Sweden for example, some half a million mobile broadband terminals are estimated to have generated twice as much network load as all 10 million handsets in the country combined.
Consumers already account for 80 per cent of the data volume in spite of only making up roughly 40 per cent of the mobile broadband subscriber base.
The report says the main response by operators has been to impose some restrictions on data traffic.
It adds that the actual data speed is normally much lower than advertised due to lack of network capacity.
Ryberg concludes that significant network investments are urgently needed if operators want to keep up with demand.
“In a few years, internet users will expect to be able to view full-HD streaming IPTV via their Internet connection,” he said.
“Then it will not do to offer 14.4 Mbps which is actually 1 Mbps or unlimited data traffic which is in reality limited to a few gigabyte per month.” -
Study says 2008 will be the year of HDTV in Asia
Seventy-five per cent of pay TV operators in Asia have, or expect to have, HDTV programming by the end of 2008.
But the lack of substantial HDTV content – both local and international – is seen as being the most important roadblock for developing the HDTV sector in the region.
These are among of the findings of a survey carried out for MEASAT Satellite Systems by Euroconsult into the development of high definition television in the Asia-Pacific region.
The study, which was conducted during May, polled the rationale, benefits, challenges and expectations of HDTV amongst the regions’ leading pay TV
operators.
A total of 25 operators in 15 markets, collectively serving more than 24 million subscribers, were interviewed.
It showed operators as generally bullish on the outlook for HDTV, with a majority expecting it to increase ARPU or profits on its own.
HDTV, which most saw as “here to stay” and destined to become a “must have” offering, had been identified as a key strategic priority for their business.
The study indicated that the rollout of HDTV is being spearheaded by newer pay TV platforms looking to differentiate their offerings from existing platforms.
More established platforms were taking a slower approach to implementing HDTV.
Interviews conducted suggested that HDTV was seen as not particularly easy or difficult to introduce.
The lack of substantial HDTV content – both local and international – was viewed consistently as the most important roadblock for developing the HDTV sector in the region.
Paul Brown-Kenyon, chief operating officer of MEASAT, said the results of the study were very interesting.
“The insights will help us determine how best we can support our customers and partners in the development of this important segment,” he said
Pacome Revillon, managing director of Euroconsult, said the study provided clear evidence of faster development of HD offerings in Asia than previously expected.
“Opportunity for growth and increasing competitive pressure are the primary factors driving pay-TV broadcasters to develop an HD offer,” he said. -
HDTV poses challenge to crowds at live sports events as fans opt for armchairs
It used to be that fighting your way through crowds to get a close-up of sporting stars such as Tiger Woods and Rafael Nadal was infinitely better than sitting at home watching the TV coverage.
But as growing numbers of sports fans upgrade to HDTVs it would appear that the lure of live events could be diminishing.
In the US, a top football club is experiencing what is likely to be a growing trend: a fall in season tickets sales as supporters decide they get a better view staying at home and watching games on their HDTVs.
Steve LaCroix, the Minnesota Vikings’ vice president of sales and marketing, said that HDTV is making his job more difficult.
The Vikings recently announced that its 2008 season ticket base would be 55,000, down 6,000 from just a few years ago.
“(But) I don’t think the renewal percentage is a factor of a fan-base erosion or anything,” he said.
“It’s just a matter of the challenge of the Metrodome and people leaving their high definition televisions at home to come sit in the Metrodome in some of the upper sections.”
The Vikings, whose regular season games are broadcast by Fox, can usually be seen each week in HD.
The Vikings’ experience is likely to become an increasingly common one – especially as ticket prices rise and networks and regional sports channels expand their HD lineups. -
Hispanics in the US more likely to buy HDTV in next 12 months than non-Hispanics
Twenty-eight per cent of Hispanics questioned in a US survey say they will buy a large-screen television or HDTV in the next 12 months.
They also say that TV advertising is the medium that mostly influenced their decision, according to research by Vertis Communications.
This compares to just 23 per cent of non-Hispanics planning to purchase a large-screen or HDTV in the next 12 months.
The study – Customer Focus® OPINIONES – also showed that Hispanics found inserts and circulars to be the second most influential form of advertising.
Internet marketing was the third-most selected medium.
Scott Marden, director of marketing research for Vertis Communications, said the data proved that multi-channel campaigns were marketers’ best options for swaying Hispanic consumers.
“Hispanics are increasingly becoming more reliant on the Internet and other forms of technologically advanced marketing—including cell phone and e-mail campaigns—to gather information on products prior to making buying decisions,” he said.
“While this portends a greater focus on online media, it is crucial for marketers to consider a multi-channel effort when motivating Hispanic consumers to make purchase decisions.
“Television and direct mail should be cornerstones, along with Web advertising, of any multicultural marketing plan.” -
Signs point towards rising output of Blu-ray Discs as production capacity grows
The market leader in the manufacture of optical disc production lines has upgraded its 2008 forecast for Blu-ray machines by 50% after receiving strong orders in the first three months of the year.
Along with “numerous orders” for Blu-ray lines from Europe and Asia, the company received its first major order for Blu-ray from the US.
Stefan Baustert, CEO of Singulus Technologies, said its order projections had been upped from 20 Blu-ray machines to “about 30 machines” for 2008.
He said a market share of more than 65 % was targeted for the Blu-ray segment.
“This means that the orders for Blu-ray in the first year of the dual layer technology already by far exceeded the volume at the start of the DVD eleven years ago with 17 machines,” he said.
“It is also very promising that recently the first Dual Layer Blu-ray disc machine was accepted by one of our key customers in the US.”
Singulus is the only manufacturer globally to offer the complete range of optical disc production line products: mastering, molding and replication lines.
Speaking at the company’s AGM in Frankfurt am Main, Baustert said orders for 21 Blu-ray dual layer machines were received in the first quarter of 2008 and that additional orders followed in the 2nd quarter.
Singulus’ ability to cope with increased demand had been considerably strengthened by the acquisition earlier this year of the Blu-ray disc activities of Oerlikon Balzers in Switzerland. -
Blu-ray awareness and potential rising in the US but barriers remain
High cost and a belief that standard-definition DVD is “good enough” are the main barriers to US consumers purchasing Blu-ray players.
These are the conclusions of a study by the NPD Group, which found that manufacturers still face challenges despite rising awareness of Blu-ray.
The market research company found that 45 per cent of HDTV owners in the US now claim to be familiar with Blu-ray Disc (BD), up from 35 percent in June 2007.
And, while only 6 per cent of all consumers surveyed said they plan to purchase a BD device in the next six months, NPD found purchase intent to be higher among the growing population of HDTV owners, boding well for the future of the format.
The report reveals that 9 per cent of HDTV owners plan to buy a BD-capable player in the next six months.
Russ Crupnick, entertainment industry analyst for NPD, said: “With HDTVs now in approximately 40 million US households, that percentage translates to a pool of almost 4 million potential BD player buyers.”
While manufacturers still face the challenge of convincing some consumers to ditch standard-definition DVD players and content, those who do appear pleased with the move.
Consumers who purchased a BD set-top player cited “leading-edge technology” and a “superior viewing experience” as primary reasons for making the purchase.
And they indicated a clear preference for BD content. In fact current BD set-top player owners expect that 80 per cent of their upcoming purchases will be in BD rather than standard DVD.
By comparison, 43 per cent of PS3 owners use the BD capability in their consoles at least once a month; however, they do not view BD movies as often as set-top device owners do.
“The door is open for studios to feed the consumer’s appetite for Blu-ray content, and we expect sales to increase, as prices for hardware and software moderate in the coming months,” said Crupnick.
“Even so it will take a concerted effort by manufacturers and retailers to ratchet awareness even further and convince all of those potential buyers of the superiority of Blu-ray Disc versus standard DVD.” -
Higher sales of HD devices helps TiVo report soaring Q1 profits
Digital video recorder maker TiVo has reported soaring income for the first quarter of 2008 boosted by higher sales of HD devices and reduced advertising costs.
The California-based company said it earned $3.6 million, or 4 cents per share, for the three months ending April 30.
This is up from a profit of $835,000, or 1 cent per share, in the same period a year earlier.
Revenue totalled $54.9 million, down 5.5 per cent from $58.1 million for the same period last year.
Tom Rogers, President and CEO of TiVo, said the most significant activity being worked on to boost stand-alone sales of HD devices was relationships with third parties.
He said tests were begun last quarter with bundling with HDTV set sales.
This was working either directly with a consumer electronics manufacturer or retailers on the bundling of the TiVo sales and potential content partners who have particular reasons to see TiVo sales driven.
“Several of the bundling programs we ran during the quarter were promising, increasing sales for both TiVo and the consumer electronic manufacturer, while allowing us to acquire subs at lower costs.
“For example, we ran a bundle in conjunction with Amazon.com and Mitsubishi that increased not only TiVo sales but Mitsubishi’s as well.”
Rogers said an expansion of these bundling efforts was planned and he was hopeful that the early successes would translate on a broader scale. -
Samsung HDTV earns top slot in customer loyalty survey
Samsung Electronics has come first in a customer loyalty survey in the US for both its HDTVs and DVD players.
The company was winner in the two categories in the Loyalty Engagement Index, a nationwide survey carried out by Brand Keys Customer.
It identifies brands that are best able to engage consumers by meeting or exceeding their expectations, which creates loyal customers.
The report forecasts which products consumers are most likely to purchase over the next 12 to 18 months.
In both the HDTV (LCD) and DVD player categories, consumer preferences were based on product design and performance.
Tim Baxter, Executive Vice President of Sales and Marketing at Samsung Electronics America, said: “Winning these awards reaffirms Samsung’s dedication to provide products with a level of design and functionality that enhances any consumer’s home entertainment setup.”
Last year, Samsung won a Brand Keys Customer Loyalty Award for HDTVs (CRT), as well as honours for HDTVs and DVD players in the 2006 edition.
Robert Passikoff, President at Brand Keys, said the Samsung brand had managed to find a niche for itself, where it means something beyond just electronic equipment to the consumer.
“Customers remain loyal to brands that resonate with values and Samsung achieves this by providing products that resonate with the customer,” he said.
“A lot of brands don’t have that connection.” -
Blu-ray recorder sales rising fast in Japan
Sales of high definition Blu-ray recorders are increasing rapidly in Japan as consumers take to the new generation of home movie entertainment.
Last month the more expensive Blu-ray recorders topped the old generation recorders in the value of sales for the first time.
The research firm BCN Ltd said that around a third of machines sold now carry the new format.
Shigehiro Tanaka, BCN chief analyst, said: “Full high-definition picture quality has become a main stream for big-screen TVs, and camcorders with higher picture quality are getting popular, too.
“From the input of data to output, high definition is taking root in Japan.”
The country was at the heart of the format war, which pitted the Blu-ray discs championed by Sony Corp against Toshiba Corp’s HD-DVD discs.
Analysts believe sales of Blu-ray players have been held back, first by indecision over the outcome of the format war and then by high prices.
However, the BCN survey showed April sales for Blu-ray in Japan were almost three times the 12.4 per cent share for both formats in January, before HD-DVD’s demise.
The researchers expect sales of the Blu-ray will rapidly expand in coming months as makers such as Matsushita Electric Industrial Co Ltd are likely to cut down prices in a lead-up to the Beijing Olympics.