E-Commerce: Purchasing via Tablets on the Rise

  • Consumers are increasingly using iPads and other tablet devices for mobile purchases, according to a new report by Forrester Research released this week.
  • Tablets might even one day outpace smartphones and PCs in terms of e-commerce volume.
  • The devices already account for 20 percent of mobile sales, even though just 9 percent of online shoppers have tablets. Additionally, 60 percent of tablet owners say they have used the devices to shop.
  • Tablets typically offer richer catalog presentations than those available via smartphones, and applications often produce faster loading times than retailers’ websites.
  • “Everyone thinks that mobile phones and mobile commerce are the next big things, and I think what this data shows is it’s probably actually tablets,” explains Sucharita Mulpuru, a Forrester analyst. “We have always capped e-commerce at 10 to 15 percent of total retail sales, but this potentially has the capability of really expanding e-commerce much beyond that.”

Lenovo to Launch Three New Tablet Devices

  • Chinese manufacturer Lenovo is entering the tablet fray with three new devices set for release in the coming months.
  • The 10.1-inch devices will be priced comparably to the popular iPad and will target specific users (the IdeaPad Tablet K1 for general consumers, ThinkPad Tablet for business users, and IdeaPad Tablet P1 for home and office use).
  • The IdeaPad K1 and ThinkPad (available in August) will run Android 3.1, while the IdeaPad P1 will run Windows 7.
  • All three devices will initially be Wi-Fi only, with 3G versions expected at a later date.
  • The Digital Trends post includes images and technical specs on all three models.

CEA Predicts Connected Portable Devices will Steer CE Market

  • The Consumer Electronics Association (CEA) predicts that the consumer electronics industry will grow 5.6 percent this year and will surpass $190 billion. This prediction is higher than the estimate that CEA offered in January.
  • Significantly, tablet computers are projected to grow 157 percent in 2011, with more than 26.5 million units being shipped ($14 billion in shipment revenue).
  • “Newer, innovative product categories, like tablets, not only meet consumer demand but also help bolster our industry and strengthen the overall American economy,” says CEA chief exec Gary Shapiro.
  • “One year ago, tablets were a new and unproven market, and now they, along with other mobile connected devices including smartphones and eReaders, are leading the entire industry to positive growth,” adds Steve Koenig, CEA’s director of industry analysis. “The revenue boost from these innovative products is undeniable as a number of other CE segments are reaching maturity and sales are naturally declining.”
  • The trade association also expects the market to reach a record $197 billion in 2012, led by sales of smartphones, tablets and 3D TVs.

Sony to Release its First Two Tablet PCs this Fall

  • Sony offered up some additional details about its first two tablets in a New York press event this week. The S1 and S2 were initially introduced in April in Japan.
  • On Wednesday, the company announced that AT&T will serve as the exclusive U.S. cellular-data provider for the S2 model.
  • The foldable S2 features dual 5.5-inch screens and will operate via Wi-Fi as well as AT&T’s 3G and HSPA+ 4G networks. According to TWICE: “When the S2 is held vertically like a book, each screen can display separate pages from a book downloaded from Sony’ e-book store.”
  • The S1 model will be Wi-Fi only and feature a 9.4-inch screen. Both tablets will include preinstalled Adobe Flash. Sony execs explained that additional technical specs are being saved for the fall launch.
  • Both models are based on the Android Honeycomb OS. Prices, however, have yet to be announced.

Insiders say Amazon Plans to Launch an iPad Rival

  • Amazon may be selling a tablet computer as early as October, report people familiar with the matter.
  • The new tablet is expected to feature a 9-inch screen and run on Android’s operating system (but will reportedly not include a camera). An Amazon-designed second tablet may be available next year.
  • Amazon is still expected to introduce two new Kindles in the third quarter.
  • With its own online retail operation, Amazon is well positioned to compete with Apple. Moreover, one analyst says Amazon can offer a cheaper alternative and make up the difference with movie, music and book sales.

Exclusive Look Inside RIM: Rise and Fall of the BlackBerry?

  • In the wake of recent negative press and pleas to management made public, BGR interviewed “multiple” ex-RIM executives and learned stories about the company’s overall “lack of vision and leadership.”
  • The two CEOs, Jim Balsillie and Mike Lazaridis, are described as brilliant “irreplaceable leaders” who unfortunately did not listen to the marketplace over time. (For example: “There will never be a BlackBerry with an MP3 player or camera.”)
  • One significant problem involved the three-year roadmap that focused on refining technologies on existing phones, not on identifying or shaping future trends.
  • For example, one executive claimed RIM was proud of how LITTLE data a user would use so there was no R&D done on browsers.
  • Another claim suggests RIM views carriers, rather than the end users, as the customers.
  • In the tablet realm, execs claim the PlayBook was sold to carriers below margin and is not making RIM any money. Moreover, RIM did not reveal that the PlayBook would not have native email until the last minute. “RIM is notorious for dropping these bombshells at the 11th hour on the carriers, and the PlayBook not having native email was a shock to the carriers.”

Tablet-Notebook Convergence: Ultra-Thin, Touch-Sensitive Devices

  • “Tablets aren’t cannibalizing notebooks; they’re converging with them,” writes John Paczkowski in a WSJ article about how fears regarding an iPad takeover of PC sales is overblown.
  • Bernstein Research analyst Toni Sacconaghi sees tablets and notebooks converging as solid-state storage, low-power processors, app stores, touch interfaces, and lighter weights continue to span both platforms.
  • Sacconaghi predicts there will be notebooks of iPad weight with touchscreens and integrated keypads for under $1,000 which may undermine sales of tablets.
  • Paczkowski concludes: “In other words, the cannibalized becomes the cannibal. And in the end, it turns out that the post-PC era doesn’t mean that the PC is dead, but rather that it’s been born anew as a converged device — an ultrathin, touch-sensitive notebook.”

New Book on Tablet Impact: iPad in the Enterprise

  • In his new book, iPad in the Enterprise (available this August), Nathan Clevenger examines how the Apple iPad has started to transform the way enterprise IT departments are operating. Some interesting excerpts from the book are listed below.
  • “The day the iPad was introduced we had some discussions about adding them into our environment; 24 hours later, we had 500 devices accessing e-mails,” said Frank Modruson, the CIO of Accenture. “CIOs who resist will eventually be forced to change.”
  • “As we move forward into a world where cloud enabled networks are the norm,” says Art Glasgow, the CTO at Ingenix, “CIOs have to accept the fact that the world has changed. Any device at any time on the network will be the norm and it will have to be done without sacrificing security and manageability. Cool matters and usability rules the day so devices like the iPad have to be not just accounted for, but designed for. The good news is that devices like the iPad aren’t just cool. They are flexible, multifunction tools that are changing the way we work and create and in that sense may very well be not just an innovation themselves, but a catalyst to innovations.”

HP Enters the Tablet Fray This Week with the TouchPad

  • Hewlett-Packard will start selling its new TouchPad on Friday, entering the tablet market currently dominated by the iPad 2.
  • The new tablet, starting at $500, features a 10-inch screen with “a slick, distinctive software interface.”
  • Walt Mossberg likes TouchPad’s UI but downgrades it for poor battery life, a small number of apps, and an operating system that is buggy and requires regular rebooting.
  • The TouchPad will initially be available in two versions (16 or 32 gigabytes of storage) and will only offer Wi-Fi connectivity.
  • Mossberg: “At least for now, I can’t recommend the TouchPad over the iPad 2.”

Samsung Galaxy Tab 10.1 Takes on the Apple iPad 2

  • International Business Times provides an interesting side-by-side comparison of tablet market leader Apple iPad 2 and the newly available Samsung Galaxy Tab 10.1.
  • For the Galaxy Tab: higher display resolution (1280×800 vs. iPad’s 1024×768); more RAM; 9 ounces lighter and 0.01 inch thinner than the iPad; Adobe Flash playback capability; features new Plane to Line Switching (PLS) panel technology that enhances brightness, clarity and viewing angles; higher megapixel cameras and 1080p video capability.
  • However, Galaxy Tab’s thinness was achieved by excluding USB, HDMI and SD card slot.
  • For the iPad 2: better battery life than the Galaxy Tab (10 hours vs. 6 hours under similar conditions); better speaker sound, particularly at a higher volume; and perhaps most importantly, more than double the number of available apps (425,000 and growing).
  • The Galaxy Tab is powered by Honeycomb 3.1 OS: “And, no matter whichever way you look at it – slice it or dice it – Honeycomb lacks the finesse and elegance of iOS.”
  • Conclusion: “Galaxy Tab is the best Android tablet to be ever released. No doubt about that. But if you’ve made up your mind about getting iPad 2, don’t give it a second thought. The UI of iOS will not make you want to regret your decision.”

Toshiba Releases its Thrive Tablet with Honeycomb

  • Add another new tablet to the growing list of available devices… Toshiba began taking pre-orders last week for its 10.1-inch Thrive Tablet, expected to hit retail shelves in early July.
  • The $430 Wi-Fi-only 8GB tablet runs on Android 3.1 Honeycomb and is powered by Nvidia’s Tegra 2 chip.
  • PC Magazine reports there will also be 16GB ($480) and 32GB ($580) models available.
  • Inputs include: USB 2.0, Mini USB, HDMI and SD Card.
  • Features include: Multitouch 1280×800 LED display, front and rear cameras and a replaceable battery.
  • According to a PC World review this week, interoperability may be what makes the Thrive stand out from the pack: “The Thrive is the first Honeycomb tablet to include a full-size SD Card slot. None of this microSD card nonsense for Toshiba; ditto for only having a micro- or mini-USB port. By including the SD Card slot and USB port, the company recognizes the need for interoperability among devices. And only with interoperability can a tablet begin to replace a laptop in your arsenal.”
  • In related news, Hewlett-Packard also recently announced its first media tablet, the 9.7-inch webOS-powered TouchPad. The Wi-Fi-only TouchPad is priced at $500 (16GB) and $600 (32GB).

Nielsen Reports TV Viewing Increase Across All Platforms

  • Americans are watching on average 22 more minutes of television per month than last year, according to Nielsen’s cross-platform video report.
  • The average viewer watched more than 158 hours a month of television content on a TV set in Q1 2011.
  • Viewing has increased across all platforms, with Internet and mobile devices seeing increases of 34.5 percent and 20 percent, respectively.
  • However, a subset of viewers who access video via their PCs tend to watch significantly less traditional TV (especially in the 18- to 34-year-old demographic).
  • Nielsen credits the surge to increased amount and diversity of content in addition to the ability to view content based on viewer’s convenience.
  • Another factor is the rise of the tablet, which offers a bigger and better viewing surface than smartphones.
  • According to Peter V. Dobrow from Comcast, families are increasingly adopting mobile devices for TV viewing. “Families use them, if the adults want to watch one thing, then the kids can watch another on the iPad and the whole family can still be in the same room,” Dobrow said. “We’re pulling together different apps and trying to make it easier to use and more consumer friendly.”

$139 Nook Introduced; E-Reader Announcements from Amazon and Kobo

This has been a significant week for new product announcements as the e-reader war rages on. New devices, features, price points, sales reports (and a potential acquisition) have been announced from Kobo, Barnes & Noble and Amazon.

Canadian-based Kobo announced its new $130 Kobo eReader Touch Edition will ship in June. CNET expressed concern regarding the general speed of the Wi-Fi device and the new Freescale i.MX508 that powers the e-reader, but added: “That said, the Kobo Touch Edition has a compact, elegant design, with only a couple of buttons (since this is a touch-screen e-reader, there’s a built-in virtual keyboard). I didn’t see a Web browser and like other Kobo e-readers, the device seems very reading-centric. It’s also geared to the international market, with Kobo making a push into several countries, most notably Germany, which has the fastest growing e-book market outside the U.S.”

The next day, Barnes & Noble announced it will also have a new e-reader available in June. The new $139 Wi-Fi Nook claims to have the longest battery life of available e-readers (up to two months) and a growing bookstore (with over two million current titles). The Nook has reportedly been a major contributing factor in Liberty Media’s interest in a potential acquisition. The Wall Street Journal reports: “Liberty executives in recent days have said Barnes & Noble’s digital strategy played a key role in their decision to make a $17-a-share bid for control of the company.”

Not to be outdone, a few hours following the B&N announcement Amazon unveiled its all-new Kindle 3G with Special Offers (currently available) — an ad-supported 3G and Wi-Fi device weighing only 8.7 ounces and featuring improved screen contrast with the latest E Ink Pearl technology. At $164, it costs $50 more than the non-3G ad-supported version (reported last month by ETCentric), but $25 less than the ad-free equivalent.

Can the other e-readers compete with the number of current Kindle options? That question remains to be answered — as does the speculation that e-readers may eventually be replaced by more affordable tablet PCs. One thing is undeniable, however: the Kindle continues to gain in popularity.

In an Amazon press release issued last week, Amazon.com announced it is now selling more Kindle books than print books and the $114 Kindle with Special Offers is already the best-selling member of the Kindle family of products. According to the release: “Since April 1, for every 100 print books Amazon.com has sold, it has sold 105 Kindle books. This includes sales of hardcover and paperback books by Amazon where there is no Kindle edition. Free Kindle books are excluded and if included would make the number even higher.”

Related Wired post: “Amazon Brings Ads to Kindle 3G” (5/25/11)

Related Wall Street Journal article (with video): “Amazon Introduces Cheaper, 3G-Enabled E-Reader with Ads” (5/25/11)

Related CNET article (with video): “Kobo unveils Wi-Fi Touch Edition e-reader for $129.99” (5/23/11)

Related Kobo Blog post (with video): “The Rumors are True! Kobo Launches the Kobo eReader Touch Edition Today” (5/23/11)

Related Wall Street Journal article: “Liberty Says Nook Inspired B&N Bid” (5/24/11)

PlayBook Outsells Motorola Xoom in its First Month

Research In Motion has had an interesting month. ETCentric’s story submission stream has featured a number of PlayBook-related stories in recent weeks… from the tablet’s weak initial launch — to the unfortunate recall of 1,000 units due to faulty operating systems — to the news that it had surprisingly sold 250,000 units during its first month of availability. In fact, despite mixed reviews and April’s slow launch, RIM’s PlayBook managed to outsell the Motorola Xoom in its first month.

In April, initial reports indicated a disappointing launch, with many units reportedly remaining on shelves during the first days of availability. Many reports credited the ongoing success of Apple’s iPad and the current lack of apps made for the PlayBook. Reuters reported: “RIM, which has priced the PlayBook to match the iPad, has struggled to win consumer fans since Apple’s iPhone and a slew of devices running Google’s Android entered the smartphone fray.”

Less than one month later, reports circulated that RIM had recalled approximately 1,000 units that were shipped with what the Wall Street Journal described as, “faulty operating systems which may have prevented users from performing the initial setup of the device.” The recall fell on the heels of RIM issuing a first-quarter profit warning, after citing lower-than-expected BlackBerry sales.

Yet not all news was negative. By the third week of May, RBC Capital Markets reported that the PlayBook had sold 250,000 units in its first month (it took Motorola’s Xoom two months to reach the same numbers). If the pace of PlayBook sales remains consistent, RIM will sell over 2 million units this year (slightly less than most analysts’ sales estimates for the tablet).

Of course, these numbers don’t come close to iPad sales, so the question remains: Is there a current tablet that is ready to compete with Apple’s iPad (at least in the near term)?

Related Reuters article: “RIM launches PlayBook but fans don’t play along” (4/19/11)

Related Wall Street Journal article: “RIM Recalls 1,000 PlayBook Tablets” (5/16/11)

Related BGR Media post: “250,000 BlackBerry PlayBook tablets sold to date, RBC says” (5/18/11)

Related Wired review: “BlackBerry PlayBook Tablet Lacks All the Right Moves” (4/13/11)

Related CNET review: “BlackBerry PlayBook review: A great surprise” (4/13/11)

Related SmartBlog post: “Will PlayBook play nice in the cloud?” (5/23/11)

Samsung Galaxy Tab 10.1: the iPad 2 of Honeycomb Tablets

CNET offers a “first look” video review of the new 32GB Samsung Galaxy Tab 10.1, a Honeycomb tablet recently demonstrated at the annual Google I/O event (the full production unit will be available June 8). The video notes that the “10.1” in the device’s name refers to the screen size and the UI is the same as that of the Motorola Xoom running Android. However, the review also notes that the Galaxy Tab has more in common with the iPad 2 than the Xoom.

The CNET review describes the new device: “As thin as the iPad 2 and even lighter, the Samsung Galaxy Tab 10.1 is the sexiest Honeycomb tablet we’ve seen. Also, it has an 8-megapixel back camera and a 2-megapixel front camera, and powerful dual speakers.” On the negative side, the review points out that lack of ports may be problematic to some users — and that from a design perspective, the plastic back of the limited edition version feels less solid and looks like “cheap kitchen wallpaper” (the release this summer may not have this problem).

The CNET evaluation goes on to praise the clean design, screen size, 1280×800 resolution and overall performance.

The bottom line: “Apple still has superior support for games, apps, music, and movies. While Honeycomb 3.1 seeks to offer more features, it’s still not here yet. So, if it’s down to these two tablets, we still recommend the iPad 2; however, the Galaxy Tab 10.1 would be the Android tablet of choice.”

Related Xconomy article: “The iPad Finally Has a Worthy Rival: Samsung’s Galaxy Tab 10.1” (5/13/11)

Related Engadget post and video: “Samsung Galaxy Tab 10.1 Limited Edition (white) hands-on from Google I/O!” (5/10/11)

Related PC Magazine post and slideshow: “Unboxing the Samsung Galaxy Tab 10.1” (5/10/11)