Analysts Expect Flood of Cheap Tablets This Fall

Analysts are predicting that a whole slew of $200 to $300 tablet computers will hit the market this fall, prompting the essential question: Which device will come out on top?

Several analysts are betting on Amazon.com to be at the top of the pile with an expected $299 Android-based tablet introduced sometime in October. The reason it will do
well is only partly because of the low price, which is below the market-leading iPad 2, starting at $499.

But analysts also expect Amazon to offer content for its 9-in. tablet thats comparable to or even exceeds the content that Apple can offer for the iPad. Amazon will make money on the content it sells, which is expected to more than make up for any loss it incurs in selling the tablet at a price below the cost of making it.

“Amazon has an ecosystem like Apple, with its own app store that offers music, movies and videos, and a bookstore,” said Bob O’Donnell, an analyst at IDC. “Not only would you get a cheaper device [than the iPad], you would get the integrated Amazon experience. That’s what makes Amazon’s tablet the most interesting and where other [Android] tablets will be challenged.”

In effect, Amazon’s approach will be to entice buyers with a much lower price, “but have all the services of Apple,” O’Donnell said.

Other Android tablets with which Amazon would likely compete include a $199 Lenovo IdeaPad A1 tablet announced Thursday, the cheapest 7-in. Android tablet from a top device maker. Another contender is the original Samsung Galaxy Tab, which is being sold on Amazon for $279.99, after having first appeared late in 2010 for $600.

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Lofty Wishes: AT&T To Offer $700 HTC 4G Tablet

AT&T on Wednesday announced the new HTC Jetstream, its first LTE-ready tablet, will become available on Sept. 4 for $700 and a two-year contract.

Jetstream’s price may be too steep for many customers, even with a fast LTE plus HSPA+ connection, given expected lower prices for tablets on the horizon. Amazon is expected to unveil a 9-in. tablet soon priced at $299, while Hewlett-Packard has begun a $99 fire sale for its soon-to-be-defunct TouchPad.

The 10.1-in. Jetstream runs Android 3.1 with an expandable storage capacity of 32 GB, but at nearly $700, it would be $100 more than the 32 GB Apple iPad 2 with its 9.7-in. screen.

That premium price for the Jetstream seems to based principally on its fast LTE (Long-Term Evolution) connection and a digital pen input capability that allows for drawings and signatures on the touchscreen.

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Lenovo Tablet Hits The Market

Lenovo’s business-oriented tablet, the ThinkPad Tablet, is now available for purchase and should start shipping within a week. The 10-inch Android device, which Lenovo officially announced a little more than a month ago, boasts an impressive mix of consumer and business-friendly features that might please both the user and their IT department.

Like other Android 3.1 Honeycomb tablets on the market, the ThinkPad Tablet has a 1280 x 800 multitouch display, 1GB of memory, front- and rear-facing cameras and a NVIDIA Tegra 2 dual core processor. It comes in a 16GB model for $499, a 32GB version for $569 and a 64GB option for $669. Basic specs and price-wise, the ThinkPad Tablet is on par with the competition.

What sets the ThinkPad apart, however, are the enterprise-oriented tools like remote administration in case the tablet gets lost or stolen, support for Cisco VPN, and full device encryption. Free apps included like Documents to Go, PrinterShare, and Computrace underscore the tablets professional target audience.

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Dish Seeks To Add Cellular Services

Satellite TV provider Dish Network is aiming to build a 4G cellular network, if the U.S. Federal Communications Commission grants its permission, according to a filing the satellite provider made on Monday.

Dish, which earlier this year completed an acquisition of bankrupt satellite mobile operator TerreStar, asked the FCC to transfer TerreStar’s frequency licenses to a Dish subsidiary and to allow Dish to use the spectrum to build a broadband wireless network that it could then use to offer standalone cellular services.

Combined with spectrum Dish acquired in a separate deal to buy DBSD North America, the satellite provider wants to build a network using LTE, the technology of choice for most of the nationwide mobile phone operators, it wrote.

But it needs special permission from the FCC to offer standalone cellular service–as opposed to a service that is integrated with satellite service–and says it is crucial that it be allowed to do so.

“The requirement to make every device dual-mode severely limits a provider’s ability to enter into arrangements with multiple device and equipment manufacturers, thereby limiting consumer choice and severely impairing the business case economics,” Dish wrote.

The company also argued that customers want the choice of a smaller, lighter device with long battery life. Adding satellite capabilities to devices makes them heavier and reduces battery life. “Today, a mobile voice and data provider’s ability to attract customers depends in large measure on its ability to provide its customers with the types of devices that best suit their needs,” it wrote.

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Apple’s iCloud Could Have A Secret Objective?

Many analysts have come to the conclusion that Apple’s iCloud may not be designed to appeal to new customers.  Apple’s iClouds service true objective is to keep existing customers locked into Apple’s iOS environment. Forester’s Charles Golvin went on to say that for people who own one or more iOS devices, they’re going to discover an even better experience.

Charles Govin also said Apple’s iCloud will keep customers because once they’ve used the service; they will hesitate to leave the Apple ecosystem because they will lose all the data they have stored. Since they do not have to worry about where their content is stored, it will make them feel that much more satisfied with their smartphone or tablet, and means that the next time they go to buy one, they’re more likely to buy from Apple.

Furthermore, Carolina Milanesi of Gartner told Computerworld, “The most important thing is that it is a complete cloud package.  It shows the benefit of living in the Apple ‘house. It will be a way for Apple to retain customers in the face of a rising tide of Android-based smartphones, and growing competition from media tablets that run Google’s operating system.”

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Laptop Users Still Prefer USB Modems

Mobile data users still overwhelmingly prefer USB modems for keeping PCs and other devices connected while on the go, but they may turn more to built-in cellular radios and portable Wi-Fi hotspots over the few years, according to ABI Research.

Despite the growing market for connected tablets and the availability of laptops and netbooks with high-speed cellular modules built in, worldwide shipments of USB modems still surpass embedded 3G and 4G modules by three to one, ABI said in a report Monday. But by 2016, that ratio may change to near an even split, said ABI analyst Jeff Orr.

Mobile operators including AT&T, Verizon Wireless and Clearwire give consumers the option of buying a laptop or netbook with an integrated cellular module. Those computers let subscribers go online almost anywhere without using up a USB port or carrying around a separate piece of hardware that sticks out of the side of the system.

Built-in modems lock buyers into one carrier or network technology for the life of the device, which most consumers and enterprises don’t want, Orr said. They buy USB modems because they can be easily discarded when a better network comes along, he said. Prices are low and often there is no early termination fee for getting out of the carrier data contract.  “That device becomes almost disposable,” he said.

One problem with built-in modems is that wireless technology changes faster than most users want to change computers. For example, the past three years — a typical PC lifetime — have seen the construction of both a WiMax and an LTE network in many cities around the U.S., offering 10 times or more the speed of 3G networks.

The market for embedded modems is still fairly small, according to ABI. In 2010, only about 5% of laptops worldwide shipped with built-in cellular modems, Orr said. Among netbooks, 17% came with modems, but overall shipments were much smaller for netbooks than for laptops. Meanwhile, 40% of tablets came with such modems, but the overall tablet market was smaller still.

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Flash Finally Comes To Motorola Xoom

Motorola announced on Twitter that the Android software update for the Xoom tablet is being pushed out in phases starting March 11, which includes enhancements to support the upcoming Adobe Flash Player 10.2.

Launched on February 24, the Xoom was pushed out to the market with some seemingly rushed, half done features, just so it arrived on the market before a new iPad. Despite certain hardware advantages over the original and new iPad, the Xoom flaunted 4G radios, SD card memory expansion and Flash support. However, none of these features were actually operational when the device launched.  Read More….

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