The Blistering Rise of iPad and Tablet Computing

TABLET THE TAKEOVER With the emergence of the iPad, media tablets have become poised like never before to dominate the home computer market. With their touch screens and chameleon like abilities to perform a bevy of tasks, one can only wonder if the takeover is sooner than we think. THE CURRENT MARKET Currently, tablets comprise only a small portion of computer sales. Though the iPad has been dominating the current tablet market, Apple is still only ranked fourth in global tablet sales. TABLET NETBOOK LAPTOP 44% 18% INTENT TO PURCHASE INTENT TO PURCHASE A recent survey found that 14% of online shoppers intend to purchase a tablet in the next 5 months. That is equal to 28 million people purchasing tablets in the next few months. = 100,000 PEOPLE |14% That equates to 28 milion people. FORECAST How have tablets effected notebook sales and how will they continue to grow? IPAD NEGATIVELY AFFECTS NOTEBOOK SALES FORECASTED TABLET SALES IN NORTH AMERICA With the announcement of the iPad, notebook sales plummeted leading many in the field to speculate that the era of notebooks and laptops may be coming to an end. As more tablets become available worldwide, including the ipad, many feel that north America's tablet monopoly will quickly slip away. 80% 61% PAD ANNOUNCEMENT 60% APAD LAUNCH 40% 43% 20% -10% JUL 09 JAN 10 APR 10 AUG 10 POTENTIAL SALES The number of tablets sold is expected to continue to grow as prices get lower and features become more advanced. 208 The forecasted units below are in millions. 103.4 54 19.5 2011 2012 2013 2014 SHARE OF US PC CONSUMER SALES Tablets are expected to continue to eat up the rest of the pc computer market. I Desktop Z Notebook/Laptop S Netbook/Mini PC Tablet 18% 100 45% -100 42% 45% 50 - - 50 9% 11% 17% 23% 0- 2008 2009 2010 2011 2012 2013 2014 2015 FUTURE How will tablets shape our relationship with computers? CHANGE OBSTACLE HOW WILL TABLETS CHANGE OUR COMPUTING RELATIONSHIP? WHAT ARE SOME OBSTACLES TABLETS MUST OVERCOME TO REPFLACE NOTEBOOKS? Tablets will all but eliminate the need for mouses as advanced multi-touch features allow for ease of use. Tablets, specifically with the iPad have allowed for access to smaller, affordable and highly tailored applications. Magazines have also found a way to reinvent themselves through applications. With media tablets being advertised as the new work station, many users still require an external keyboard given that the keyboard on the tablets are less than adequate. The one industry that may be hardest hit by the media tablet takeover is the gaming industry Mini gaming units now seem impractical when one tablet can preform all the same functions. The main problem with tablets, as with netbooks, is their inability to perform multiple functions with large programs. In the iPad's case, only a few The word, cannibalization, has been frequently used to describe media tablets. Given their chameleon like ability to be both a nook, mp3 player and mini gaming system it seems appropriate to view these devices as electronic Hannibal Lectors. programs can operate at once and none can share the screen at the same time. Sources: Garmet, PC World, Morgan Staniey Research Groop, Forrester Research Inc. FOCUS CURRENT MARKET SHARE: US NOTEBOOK % UNIT GROWTH