 |
A new report from online publishing company Yudu Media presents a very convincing case that when it comes to marketing and audience, few devices (tablets or otherwise) can compare with the iPad. The report collects the findings of a number of different surveys and research outlets, painting a picture of a device tailor-made to sell content, products and services. Here’s a picture of some of the more noteworthy findings within Yudu’s report | | | | | | |
Tablet demand is still underappreciated: shipments could reach 100 million by 2012, in our bull case scenario. A series of proprietary surveys conducted and reported by Morgan Stanely covering more than 8,000 consumers and 50 chief information officers suggest that tablets are accelerating theadoption of the mobile internet.
The data yielded several surprises:
1) two-thirds of companies expect to allow tablets on their networks within a year;
2) consumer interest in tablets is even greater outside of the US, and
3) users are moving beyond web surfing,email, games, video, and applications to content creation.
Tablets are additive to the broader computing market, and we see more beneficiaries than challenged companies. Tablet disruption is not yet discounted by the market in many industries.Tablets should reduce PC market growth by 3 percentage points in 2011—maybe more over the long term. Like smartphones, tablet growth is likely to benefit the established leaders while challenging legacy technology. The impact on printing companies may be the most underappreciated cannibalization story and companies like AMD, Dell, Lexmark, and Ricoh's potentially challenged from tablets.
Morgan Stanley report on The Tablet Market indicate that Apple and Samsung Electronics are the most probable tablet beneficiaries, with tablets core to the investment thesis. ARM Holdings, Broadcom, and SanDisk help provide users with fast, touch-enabled, and power-efficient mobile devices and should enjoy greater scale if tablet growth surprises to the upside. Medium term, there are opportunities for software companies in applications, management, and security. Tablets’ impact on Wintel players Hewlett-Packard, Intel, and Microsoft has largely been discounted, and earnings risk appears limited, partially due to diversification.