PC Makers Likely To Feel Compelled to Build 'Smart Tablets'

Whether or not you believe the rumors of the coming large-form iPod Touch, the larger story is that there's an obvious amount of pent-up demand for such a device. While I'm sure Apple (AAPL) delivering it would create quite a stir, it's worth noting in the Android realm, there are heavy hitters who span from vending everything from handsets to notebooks. If they weren't thinking about building a "smart tablet" before, they likely are now. And thus Apple will be compelled to as well.

This form factor is perfectly sized to slip into a purse. As I've noticed anecdotally, users of netbooks in coffee shops tend to be skewed towards the female persuasion. But smart tablets will slip into any kind of bag, so they could be popular with either gender.

So the first question in the minds of OEMs, as they choke on the margin erosion from netbooks, is "do I build one of these?" I'd propose asking the question a different way; "what if I don't build one of these?" Mostly because my instinct is that others will. Loosely paraphrasing Intel's (INTC) Andy Grove, either you eat your own lunch or someone else will.

But what can an OEM do to continue the netbook/notebook momentum and keep at least some sales from being displaced by smart tablets? For starters, they might want to think about adding a video-in port which can receive video from an iPhone/iPod/Android/Windows Mobile/etc device. And/or offering smartphone companion software so that the netbook can be used as a bigger screen and real keyboard for the smartphone. That would allow for a person to keep a pocket sized smartphone and have their notebook usage model.

I would think it a good idea for netbook/notebook chipset vendors to integrate such an input port, and keep the BOM costs down for OEMs. And I think Celio is set up nicely for a CES award.

Disclosure: no positions

Comments

[bluemarlin1402:]

Wow,

You're article makes little sense and offers no support for any of your arguments.

Your first statement, "there's an obvious amount of pent-up demand for such a device" referring to a larger ipod touch, is backed with what research? How or why is it obvious?

You then talk about "the Android realm". Android is currently available on only ONE handset. Now, all ONE manufacturer is thinking of jumping into a touch tablet because you state "they likely are now". Is now New Year's Day? Or all of 2009? Or the first week in January? And why now? What makes them likely? Did they read your article and deiced to forgo the Rose Bowl to work up a touch tablet?

And why "thus Apple will be compelled to as well". Apple HAS NOT been compelled to jump into the netbook market and Steve Jobs has declared they "don't make crap". Apple does not follow, especially an alliance that has yet to manufacture more than one device and may never reach penetration in the mainstream markets.

And your comment about a video-in port to receive video from a iphone is asinine. So a person is going to carry an iphone, a docking station and a video out cable so they can watch video on a 7" screen rather than a 3" screen. Why wouldn't they download video right to the tablet?

Jan 01 03:10 PM

[Zoltan L. K...:]

AAPL and its success seem to generate big ego reactions all over the finacial press. Many people try to behave as inventors or at least to guess Apples next innovations. The same is true for financial reporting and of course for medical remote diagnostics, and of course for ethics. No one is really trying just to follow and understand (or better value) the moves of Apple. Well, Apple is not a mediocre company, but this is why watching and understanding it should be more important.

Jan 02 05:08 AM

[iNeal:]

Bill Gates once predicted we'd all be using tablets by now. Someone needs to analyze why that has NOT happened. That would be a very interesting article.

Jan 02 01:41 PM