The tablet computer has gone mainstream
Apple's Steve Jobs believes his company is in an almost unassailable position, and has the 'tiger by tail' in this new market. But that isn't stopping everyone from BlackBerry to Next trying to emulate the iPad's success.
By Claudine Beaumont, Technology Editor
Published: 7:00AM BST 21 Oct 2010
There's an avalanche of tablet computers, with some proving more successful than others. Apple is bullish about the iPad's sales figures. Photo: Bloomberg
In all the doom and gloom of budget cuts and spending reviews, Apple’s latest quarterly earnings shine like a beacon of hope – for shareholders, at least. In the past three months, the company has recorded $20 billion (£12.6 billion) in sales, representing a tidy profit of $4.31 billion over that period. Much of that success has been down to its latest gadget, the iPad.
Although sales of the touch-screen, tablet-style computer have been somewhat less stellar than some on Wall Street had predicted, there’s no doubt the device has mass appeal, with around eight million sold to date. It’s not hard to see why. The iPad is the perfect device to have next to you on the sofa – to check emails, send a tweet or noodle around the web without having to wait for a laptop or PC to load up.
Many people were sceptical about whether the iPad would take off. After all, as far back as the start of this century, Microsoft’s Bill Gates was proclaiming tablets “the future of computing” without building a product that looked likely to fulfil that prediction. But, once again, Apple has managed to exploit the latent potential in a new segment of the market – just as it did with MP3 players and smartphones – and its position already looks unassailable.
“The more that time passes, the more I am convinced that we’ve got a tiger by the tail here,” says Steve Jobs, Apple’s chief executive. Dozens of consumer electronics companies are now building their own tablet computers, with mixed results. Google’s Android operating system, designed specifically with mobile devices in mind, is proving particularly popular with manufacturers.
Samsung’s excellent Galaxy Tab computer runs the platform, and has earned rave reviews for its intuitive user interface and styling. Price could prove to be an issue, though: unless shoppers go for a Tab that is subsidised on contract by one of the mobile phone network operators, it could actually end up costing more than the entry-level iPad. Research in Motion, the company behind the popular BlackBerry smartphone range, is also launching its own tablet.
The PlayBook features a 7in screen, runs RIM’s new QNX operating system, and, according to BlackBerry chief Jim Balsillie, will appeal to both consumers and business users. What the Tab and the PlayBook have in common is the size of their screens: at 7in, that’s 3in smaller than the iPad’s display – practically unusable, in Apple’s view. Jobs quips that companies making 7in tablets should include sandpaper “so the user can sand down their fingers to around a quarter of their size” in order to cope with the smaller screen.
Balsillie is unmoved by Apple’s criticism. “We believe there’s a market for tablets of that size,” he says. In the six months since Apple’s iPad went on sale, tablet computers have gone from niche products to mass- market devices. Even high street retailer Next has started selling one, at the almost pocket money price of £180. It runs the Android operating system, and, despite mixed reviews, clearly demonstrates that tablets are becoming as mainstream as mobile phones and MP3 players.
“It’s only a matter of time before other high street retailers and supermarkets start selling tablets in-store,” says James Holland, of gadget website Electricpig.co.uk. Expect the avalanche of tablets to snowball in the next few months, with devices from HP, Microsoft and Asus set to hit the shelves. These devices will have to be faultless if they are going to challenge the iPad. And they will need to cost substantially less than Apple’s £429 entry-level model in order to turn shoppers’ heads, but without compromising on usability.
A good selection of apps, too, is a must: Apple already has an advantage over its competitors with its well-stocked App Store, and consumers will be expecting a similar service on rival platforms. “The iPad incorporates everything we’ve learnt about building high-value products,” says Jobs. “We create our own chip, our own software, our own battery chemistry, our own enclosure. “Our competitors’ products will likely offer less, for more.” A gauntlet, then, has been thrown down by Apple to its rivals. It will be interesting to see who rises to the occasion.
