The market for mobile internet devices (MIDs) is set to explode over the
coming years, according to a panel of analysts at the Intel Developer Forum in
Shanghai.
MIDs are a brand new platform that is expected to see rapid adoption as it
fills the gap between laptops and smartphones.
Growth will be driven by the increasing mobility of users who currently lack
a single device to accomplish all tasks. This is because notebooks are too
cumbersome and mobile phones are too limited.
One analyst even predicted that the MID market would grow faster than the
overall mobile sector.
This is because the necessary infrastructure is already in place, meaning
that growth will not be hampered as it was for mobiles as networks were being
established.
One analyst explained that "there are a lot of hungry vendors out there,
which can only be good for the industry and customers".
Although the MID form factor is very similar to that of ultra mobile PCs
(UMPCs), they differ in focus and features.
While UMPCs aim to provide a full PC experience in a handheld form factor,
MIDs are more focused on connectivity and internet access.
Jim McGregor, research director and principal analyst at In-Stat, told
vnunet.com that MIDs are
essentially an evolution of UMPCs.
Although UMPCs have not been particularly successful to date, the timing now
is much better for the launch of MIDs.
"This is more about timing than technology. The pieces of the puzzle are
coming together," said McGregor.
"The hardware is now powerful enough, the ubiquitous connectivity is there
and the demand for full mobile internet access from consumers is there as well.
"
However, the panel pointed out that MIDs still have hurdles to overcome if
they are to see mass adoption.
The biggest stumbling blocks seen by the analysts are the potential usage
models of these devices, and the business models that operators and carriers
will employ.
To overcome the first problem manufacturers need to make available a wide
range of MIDs in a variety of form factors and at a range of price points,
allowing customers to decide which device best suits their requirements and
budget.
As the primary focus of the MIDs is connectivity and web services, the second
issue of operator tariffs could make or break the platform in certain markets.
All the analysts stressed that in order for MIDs to see the best possible
adoption rates mobile operators need to scrap usage-based payment plans and
adopt flat-rate models and use other value-added services to boost revenues.
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