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CES is upon us and the impact of the plethora of announcements of items with direct connection to the internet will be huge.

Record growth in smart phones and the huge success of the iPad (AAPL) spurred record growth in Mobile Internet Devices (MID) for 2010, according to the report Intel Versus ARM in Mobile Devices and Netbooks/Smartbooks/Tablets: Insight Into Critical Issues and Market Analysis, published by The Information Network.

The MID market grew 72% in 2010 to 314 million units. By way of comparison, 2009 registered only a 20% gain. Growth was helped by a 90% gain in e-book reader shipments, a 60% gain in smart phones, and nearly 20 million iPads sold.

For 2011, The Information Network anticipates that unit shipments of MID devices will moderate to 44% growth media tablets, namely iPads and Android tablet competitors, will grow to more than 300% in 2010 to 54 million units.

Mobile Internet Devices

2010

2011

% Change

Smart Phone (K)

278,576

365,770

31.3%

Media Tablet (K)

17,523

54,218

209.4%

E-Book (K)

9,743

12,877

32.2%

Other MID (K)

7,750

18,500

138.7%

Total (K)

313,592

451,368

43.9%

ARM (ARMH) owns the MID space. They own 95% of the mobile phone market and 85% of the smart phone market in unit shipments. ARM processors are being manufactured in the best semiconductor facilities.

Companies that are currently or formerly ARM licensees include Alcatel (ALU), Atmel (ATML), Broadcom (BRCM), Cirrus Logic (CRUS), Digital Equipment Corporation, Freescale (FSL), Intel (INTC) (through DEC), LG Group, Marvell Technology Group (MRVL), NEC (OTC:NELTY), NVIDIA (NVDA), NXP (NXPI) (previously Philips), Oki, Qualcomm (QCOM), Samsung (OTC:SSNLF), Sharp (OTCPK:SHCAY), ST Microelectronics (STM), Symbios Logic, Texas Instruments (TXN), VLSI Technology, Yamaha (OTCQX:YAMCY) and ZiiLABS, and Taiwan Semiconductor (TSM).

Intel is attempting to be a competitor with its Atom processor while Microsoft (MSFT) is tuning Windows 7 to new tablet hardware designs.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Mobile Internet Device Market Grew 72% in 2010