With CES 2012 a month away, it’s a good time to look ahead at what’s next for consumer technology product strategy. All eyes have been on tablets: Apple sold 40 million iPads in just 18 months, with 11 million sold in this past quarter alone. With the Kindle Fire and Barnes & Noble Nook Tablet finding their own successful markets, it’s easy to see why tablets attract so much attention and excitement. But computing evolution doesn’t end here—tablets, while still growing rapidly, are not the final form factor. We’ve identified these five form factors as the best candidates for what comes next, which we describe in more detail in a new report for clients:

• Wearables. Wearable devices are devices worn on or near the body that sense and relay information. The Lark sleep tracker and BodyMedia wristband both sync with iOS devices and target health and fitness scenarios. WIMM Labs' wristwatch runs on Android software, and targets multiple scenarios including news, social networking, health, and personal finance.

Today Amazon revealed its new Kindle lineup, including a touchscreen E Ink eReader and Amazon’s first color touchscreen tablet, the Kindle Fire. I can’t say I’m surprised. The day the iPad launched, my colleague James McQuivey wrote that Amazon should “go head to head with Apple on a media tablet.” In March of this year, I wrote that “iPad 2 won’t have much competition in 2011, unless it’s from Amazon,” and more recently I published a report outlining the competitive advantages and disadvantages Amazon’s product strategists will face if they launch a tablet.

Looking back at that report, here’s what we got right:

• Amazon is competing on price, content, and commerce. The Kindle Fire, a 7-inch Wi-Fi only device, will retail for $199—less than half the price of the iPad, less than the 7-inch Barnes & Noble Nook Color, BlackBerry Playbook, and HTC Flyer. As I predicted, Amazon is indeed drawing on all its content and commerce assets including video, music, games, as well as magazines, apps, and services—the Kindle Fire comes with a 30-day free subscription to Amazon Prime, and a pre-installed Amazon shopping app. It also features a spiffy custom-built browser, called Amazon Silk, which interfaces with EC2, Amazon’s cloud server, to optimize performance. (Meaning: it’s really fast.)

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:

Minutes after the Wall Street Journal reported that HP plans to spin off its PC business, I'm already getting press inquiries. There's still a lot we don't know, and I hope we'll learn more on the earnings call tonight. Based on what we know now, here's my take on what product strategists at HP are thinking:

HP's PC product strategy is squeezed by two macro-trends: The commodification of the PC market, led by Asian manufacturers like Asus, and the transition to a post-PC era, led by Apple, Inc. (formerly Apple Computer). HP is the biggest PC manufacturer in the world, but its position will rapidly decline if it can't adjust its product strategy to combat both trends.

It makes sense that HP shareholders don’t want its low-margin PC business dragging down its high-margin enterprise services business. As for HP’s chances as a standalone PC manufacturer, it’s tough to be a PC maker in a post-PC world. HP’s competition is Apple on the high end, which has justified higher margins based on non-hardware offerings: service (Genius Bar, Apple Store reps), channel (Apple Store), and software (iTunes/App Store). On the other end, all of HP’s competitors, other than Dell, are based in Asia and have very different manufacturing and labor economics. HP has been caught up in a race to the bottom as the PC market has commodified. Now it needs either to become comfortable with commodification or to build out the elements of an ecosystem to enable true competition with Apple.

There's a lot of attention being paid to tablets cannibalizing PCs. As we've said in the past, we think PC cannibalization from tablets is overstated. But the cannibalization phenomenon is real: We wrote in a June report (The Products That Lose When Tablets Win) that we expect tablet cannibalization to accelerate in the next six to 12 months as slightly less affluent consumers buy tablets and have to make tough tradeoffs. Several predictions we made in the report are already coming true. We made the call that:

"Portable game player sales will go off a cliff. Portable game players (PGPs) like the Nintendo DS already have huge penetration, so there's a natural saturation point that PGPs are reaching anyway. That saturation combined with cannibalization from tablets and smartphones, which fulfill the same casual, on-the-go gaming scenarios but also multitask with email and other applications, spells trouble for PGPs. The Nintendo 3DS is already reporting weaker-than-expected sales, and we expect this trend to continue."

Much to Nintendo's chagrin, this prediction is proving accurate, as Nintendo reported that its 3DS sales plummeted to 710,000 units this past quarter from 3.6 million units the quarter before.

In the June report, we also wrote that game console sales would not be negatively affected by tablets and could actually see a boost from increased interest in gaming as mainstream consumers find joy in games like Words With Friends and Angry Birds.