Sony is no copycat. Its Tablet S, revealed at IFA today, shows true innovation in hardware design. It’s slightly smaller than the iPad, but it feels completely different to hold, with its folded-magazine “wraparound” design. It has high-tech features that set it apart from the iPad and other Android Honeycomb tablets, including DLNA support, an IR blaster, and what Sony calls “quick view/quick touch,” which makes the screen and Web browser extremely responsive and fast-loading.
A bigger step for Sony is what comes on the device. The Tablet S comes preloaded with access to Sony Entertainment Network, including a six-month free subscription to its Music Unlimited service, plus two free PlayStation 1 games—finally, leveraging assets from across different business units, a huge step for Sony. Sony has also negotiated deals for an exclusive window to several new Android tablet apps, including Crackle and Foursquare, which will be preloaded on the device. These are all important product innovations, which combined with Sony’s brand should put Sony’s product ahead of many Android competitors in consumers’ minds.
We’ve been beating the Amazon tablet drum for a while—in fact, as early as April 2010, my colleague James McQuivey wrote that Amazon's product strategists should “go head to head” with Apple and create its own tablet. Now, on the cusp of Amazon actually doing so (perhaps as early as October), we’re turning up the volume with a new report explaining exactly how, and why, Amazon will disrupt the tablet market.
This report has been in the works for months. We held off publishing it last week out of respect for Steve Jobs, and we have great admiration for his inventions and influence on our culture.
Even though Amazon taking on Apple is a bit like David taking on Goliath (compare the market cap, profits, and cash position of the two companies), Amazon’s willingness to sell hardware at a loss combined with the strength of its brand, content, cloud infrastructure, and commerce assets makes it the only credible iPad competitor in the market. If Amazon launches a tablet at a sub-$300 price point — assuming it has enough supply to meet demand — we see Amazon selling 3-5 million tablets in Q4 alone.
Amazon’s quick ascension in the tablet market will completely disrupt the status quo. Apple will retain dominant market share, but Amazon will cause product strategists at:
No other name in technology carries as much reverence as Steve Jobs. His departure as CEO of Apple combined with HP investigating a spin-off of their PC division has a lot of companies wondering what changes are in store. A few points:
1. In the face of the major market shifts, a strong case can be made for multi-sourcing your enterprise PCs. Recent events highlight the risks that enterprises face -- risk that will be more apparent in 1-2 years. Apple’s product roadmaps have already been planned for the next 15-18 months (depending on the product line), so I don’t expect to see any significant downside for Apple until this current roadmap is past. But when Apple's current roadmap is refined under new leadership, we’ll start to see the effects on Apple’s enterprise strategy. In addition to this news, more certainty exists with HP's spinoff of their PC division, and Dell will show their hand in how they plan to move forward in the face of these developments. The landscape in 2-3 years will be drastically different. Diversifying your PC suppliers via multi-sourcing can help mitigate that risk.
First off, let me say this: I hope that Steve Jobs' health improves, and that he comes out of whatever challenges he's going through in the best of health. He's an amazing, visionary leader of a dynamic company -- and he's also a person with a family. Let's all wish him well.
While famously a CEO, Steve Jobs is also, it should be known, a product strategist par excellence. He's clearly been involved, in a deep way, in the development of Apple's product ideas, product designs, business models, go-to-market strategies, and responses to competition. These are the job responsibilities of product strategists. In his (and Apple's) case, product strategy has risen to the very top of the organization.
Product strategists of two different flavors are wondering how they might be affected by his resignation as CEO (and concomitant request to become chairman):
Product strategists who compete with Apple. Product strategists at companies like Microsoft, Google, Samsung, HP, Dell, HTC, and similar firms wonder if Steve Jobs' change in role might benefit them. They actually shouldn't wonder: His departure from the CEO spot won't benefit them -- not for a very long time, at least. Apple's product development road map stretches into multiple years ahead and has been shaped both by Jobs and by the organization he built. Jobs' departure won't affect Apple's product portfolio, quality, or competitiveness for a long time -- if ever.
Google sent shock waves through the mobile world this morning as it announced a planned acquisition of Motorola Mobility for $12.5 billion in cash. The initial commentary has largely focused around Motorola’s patent portfolio, how this will affect the other Android manufacturers, and what Google will do with the rest of Moto’s hardware business which my colleague John McCarthy summed up nicely in his blog post.
So what kind of an impact does this have on infrastructure and operations (I&O) professionals? For the most part, not much of one. I&O professionals are working to make their organizations platform-agnostic by deploying mobile device management (MDM) solutions. For them, Android is only one in an increasingly crowded space of platforms including iOS, Blackberry, and Windows 7 Mobile.
Still, there is one interesting implication in this deal that I&O pros should take note of — Google gets 3LM. Back in February Motorola Mobility acquired 3LM, a startup including former Google employees who worked on Android, which specializes in enterprise security and management software. Rumors had already been flying that some of the 3LM functionality like storage encryption and anti-malware would be included in the next version of Android (Ice Cream Sandwich). With 3LM now a part of Google, firms might finally management and security capabilities I&O and security pros have been asking for in Android.
We are publishing a new Forrester report today on the European tablet market. With the recent launch (and huge marketing push) of the Acer Iconia Tab and Samsung Galaxy Tab 10.1 in multiple European countries, one might think that things were looking up for Android tablets in Europe — but that’s not the case. In our report, we found that:
Europe is, and will be, a huge market for tablets. We are projecting that EMEA (Europe, Middle East, and Africa) will account for 14.5 million, or 30%, of worldwide consumer tablet sales in 2011. Three times as many Europeans as have tablets today say they are interested in buying one in the future.
Outside the UK, Apple could be vulnerable to competition. Apple has 52 Apple Stores in Europe, and 30 of them are in the UK. (For reference, there are 238 Apple Stores in the US.) Apple’s brand and channel presence is not uniformly strong in Europe; Mac ownership, for example, is lower in every EU-7 country than it is in the US.
But no competitor has met Apple’s challenge. Despite Apple’s potential vulnerability, we estimate that Apple still has 70% market share for tablet sell-through to consumers in Europe. (Sell-through is different from shipments; our interviews with European retailers confirmed that non-iPad tablet inventory is sitting in the channel — i.e., manufacturers are shipping more tablets than consumers are buying. So if you read reports that Apple has a lower market share, look at whether the report is measuring shipments or sell-through.) What’s more, non-iPad tablet competition is quite fragmented — OEMs, operators, and niche players form a crowded marketplace but one notably devoid of shoppers. iPad competitors’ prices are too high, and no competitor has matched Apple on content or channel strategy.