Disruptive technologies are game changers. Products and innovations by whose very presence can alter the marketplace either by creating a new segment, breaking a price barrier or offering products to a completely new set of users. This 5 part series focuses on the biggest, most innovative and emerging stories of 2010 that are expected to impact 2011.
Part 1- Tablets
The iPad is the perfect example of a disruptive technology. When it launched in early 2010, no one really knew what it was for and it didn't seem to have a specific function. The descriptions ranged from "giant iPod Touch" to "netbook without a keyboard" as the general feeling of skepticism gave way to unparalleled demand. People soon realized that this strange, new device's greatest strength was its incredible versatility.
The iPad went after the netbook segment, challenged the burgeoning eReader market and even invaded businesses and boardrooms as the "it" product of 2010. Apple has reported selling 4.19 Million iPads this past quarter, it is the most wanted gift by kids 6-12 years old this holiday season. Despite its phenomenal success and soaring popularity, it is surprising that the iPad has been allowed to thrive all year without any real compelling competition.
CES 2010 was replete with all forms of tablets that added different form-factors and were featuring a bevy of OS choices but we're now a day away from December and it is the last month of 2010 and so far the iPad has remained unchallenged. Its library of apps is growing (although not fast enough) and its variety of uses, accessory ecosystem and rate of adoption is increasing exponentially.
Meanwhile, competition has been slow and sluggish. Samsung's Galaxy Tab was launched last month and has reportedly sold 600,000 units globally yet very units are to be found in the Bell stores and none in the Rogers stores in Toronto. Samsung's Tab, an innovative and powerful device running on Google's rival Android OS is also only sold as a 3G device that can only be found through wireless companies. It is desirable, capable and makes the most out of using a smartphone-designed OS on an obviously larger screen. Sadly, it is also expensive. There isn't a specced-down Wi-Fi only version for users who simply want a tablet without the costly and bandwidth capped 3G data connectivity.
RIM's BlackBerry PlayBook, a reportedly sub $500 7' inch multi-processor tablet, is slated for release in Q1 2011 and may have the right combination of brand-loyal users and the reasonable price of admission to get momentum where the Android tablets have faltered. The key issue with the PlayBook is the availability of apps upon release as well as how it works as a standalone tablet without an accompanying BlackBerry smartphone.
Tablets are definitely here to stay and they are still terraforming their own landscape and economy. Major players in consumer technology have put a lot of money and research into this new and exciting market. We feel that 2011 will see more market definition as well as a greater differentiation between competing products. Tablets will take a piece out of netbook sales and might even make an impact on the red hot smartphone market as some users may opt for feature phone + tablet combos to better manage between voice and mobile wireless Internet access.
Next: Part 2 - Android Smartphones