Will the Apple Tablet Matter?

Thanks to Steve and friends, mobile computing is exploding. The iPhone, as was the case of the iPod for digital music, has served as the catalyst for the long anticipated mobile revolution.

Now that everyone and their sister has a smart phone with the corresponding unlimited data plans, do we really need a tablet computer? We have seen strong growth in Netbook sales for those needing a more robust mobile computing vehicle. So will the iSlate be more iPhone or AppleTV?

First let's consider the limitations of the delightful, yet limited iPhone:

• Screen size: This is inherently a problem for any mobile phone device. For serious UI intense computing, the 320*240 pixel screen lacks the size and screen real-estate that our laptops and desktop alternatives provide.


• Multi-tasking: Due to the screen and processing limitations of the iPhone, multi-tasking does not work well on these devices. If you are looking to request driving directions, while reading email, and searching Yelp! for reviews... ummm, let's just say - "good luck."


• Input limitations: Although the on-screen keyboard of the iPhone is sufficient for short text messages, don't expect Steven King to draft his 482'd book on one of these. Any iPhone user knows that typing on the iPhone is a limitation to be tolerated, rather than enjoyed.

Other challenges such as limited storage and heavy processor based applications computing is also missing, but those type of functions are not mission-criticfal for the mobile computing experience.

The Netbook presents a more side-by-side challenger to the yet to be announced Apple tablet. The Netbook is designed to solve the above problems of mobile phones, while serving as a mobile optimized experience against a traditional laptop.

A Netbook is superior to a laptop for mobile computing in the following areas:

• Bootup Time: As RIM corporation knows, the killer app for mobile computing is email. Anyone who has lugged a laptop to Starbucks knows that waiting for the *&%#ing computer to book up is really, really annoying. Netbooks offer a painfree? or at least less painful, bootup process.


• Size: Ok, this one is obvious, but clearly this is one the main selling points of the Netbook.


• Connectivity: This is the key. The fact that you need to buy a data plan (similar to Android and iPhone data plans) with your netbook means that anywhere your Netbook is, you are connected to the Internet, unless of course your carrier rhymes with "Blay See and Flee." - but that's another story.

So if the Netbook solves all the size and computing power problems of a mobile device, and the size, connectivity and performance issues of a laptop, does the iSlate matter?

The answer begins with "Steve" and ends with "Jobs". The reason the iSlate is destined to be a hit is the Kindle-effect. The Kindle proves there is a robust market for a digital reading and electronic book device. Amazon being Amazon, they have done an excellent job in providing easy access to a universe of digital books, magazines and news. The Kindle aspires to be the iPod for electronic books and news. Queue the "Darth Vader" theme music. Then along came Apple. Apple knows this game. Apple is going to rapidly onboard book publishers to further enhance their iTunes marketplace. Unlike the one-trick Kindle, the iSlate will incorporate books, music, videos, movies, apps and more. Will customers be satisified with an elegant digital book reader when they can cough up the Apple premium in order to get Internet connectivity and all the other goodies that Apple will be providing?

Expect Apple to take a leadership role in this lightweight, mobile, large-screen device category. Although the Netbook provides a similar hardware device experience, Netbooks lack the marketplace and digital store connection that Apple and Amazon provide. This movie is playing out a lot like the iPod/iTunes/MP3 game.

The G factor. Google are you listening? The one company that seems to have the best chance to disrupt the Apple machine is Google. Android is playing catch-up to the iPhone, but Google has setup the proper ecosystem to make the challenge a serious one. By addressing not only the mobile OS issue, but also the corresponding value-add Android apps development and distribution markets, Google has rallied a serious group of phone manufacturers and mobile app developers to take on its Cupertino competitor. Google needs to step up again to take on iTunes. The problem for Google is that content providers are already unhappy with Google's book scanning projects and YouTube. Can Google work out an ad-revenue share business model to win premium content? There doesn't seem to be evidence to support this.

Netflix? The dark-horse in the race is Netflix. Netflix has quietly setup a solid infrastructure and business development deals to better take on iTunes. Expect Apple to exert their considerable marketing and brand equity to drive a hard bargain for premium content providers. Expect a few hold-outs from large book, magazine, media, and news publishers who are unwilling to be pushed around by Apple. These publishers may seek out Netflix to provide an alternative marketplace to distribute their content. The hope is that unlike in music, where Apple is the only show in town, that another content marketplace providers (Amazon, Netflix) will emerge to keep Apple in check.

Yes, the Apple Tablet matters.