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Apple iPad launch marks birth of media tablet segment, will spur market growth: ABI Research



By Alex Johnson
07 February 2010 @ 01:09 pm BST

London - The £600 million tablet computer industry, which has enjoyed limited success in commercial and industrial markets, could soon be looking up, thanks to the launch of Apple's latest offering - the iPad.


A video game is displayed on Apple iPad, a new tablet computing device, after its launch event in San Francisco, California, January 27, 2010
A video game is displayed on Apple iPad, a new tablet computing device, after its launch event in San Francisco, California, January 27, 2010 (Reuters photo)
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According to US-based ABI Research, the iPad could signal "the real start of a new market segment for media tablets" which could post 4 million sales in 2010 (in line with Endpoint Technologies' estimates), rising to about 57 million by 2015. Though the figures, when compared with PC sales (300 million were shipped in 2009), is not encouraging, yet, it's better than nothing.

According to market analysts, in the past, tablet computers have struggled against laptops as they tend to cost more but offer less functionality. For instance, tablet computers lack keyboards and have been slow to exploit handwriting and touch input even when there have been some support in the operating system. Furthermore, tablet computers generally have less powerful processors than laptops and are devoid of useful features such as webcam and HDMI-out. Their poor battery life and prohibitive price tags have also forced its use to be restricted only in very specialised markets till now. For instance, they arre used by retailers for stock taking. They are also used by logistics companies to monitor the delivery (and signing for) of post and stock. Traffic wardens also use them to issue parking fines.

But the iPad can change all that and Gartner Research believes that with Apple now entering the tablet computer market, as much as nine million tablet computers could sell in 2010 despite tablet computers being a niche product.

Why? To begin with, the iPad's cheap. It will cost from $499 to $699 to US consumers depending on the storage size which ranges from 16GB to 64GB while the 3G-enabled iPads will cost between $629 to $829. In the UK, the iPad will expected to sport a price tag of £388 to £591 for the WiFi only model, and £490 to £693 for the WiFi and 3G model. In other words, you can get a 16GB iPad with WiFi for only $499, about the same price as a high-end smartphone but much less than a laptop.

Secondly, unlike other tablet computers, the iPad boasts of powerful specs that can put any similarly-priced laptop to shame.

For instance, the iPad sports a multitouch display and is powered by 1GHZ Apple processor, WiFi and Bluetooth besides other bells and whistles such as speaker, microphone, accelerometer, digital compass, built-in iTunes software and (optional) 3G connectivity.

The device has a multitouch display, allowing people to type directly on to the screen, as well as manipulate pictures and control the action in games with their fingers. In addition, users can also plug in a keyboard to the iPad via a special dock.

Besides coming preloaded with twelve applications - essentially multitouch versions of existing Mac software such as iPhoto, the iPad also allows users to download third party apps - both specially designed for the iPad and those already available for the iPhone. And, owners of both can synchronise their apps between the two devices.

No wonder, Apple co-founder and CEO Steve Jobs has called it a "revolutionary and magical" product that represents a new paradigm in the way people read digital books, watch television, use the internet and play video games.

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