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New iPads aim to boost Apple in premium tablet market
by Staff Writers
San Francisco (AFP) Oct 15, 2014


Tablet sales show fresh signs of cooling: survey
Washington (AFP) Oct 15, 2014 - The market for tablet computers is cooling off rapidly as consumers take another look at newer PCs and turn to large-screen smartphones, a market tracker said Wednesday.

A Gartner report predicted 2014 worldwide tablet sales of 229 million, up 11 percent from last year, when the market grew 55 percent.

"Some tablet users are not replacing a tablet with a tablet, they are favoring hybrid or two-in-one (PC) devices," said Gartner's Ranjit Atwal.

Gartner sees a pickup in tablet sales in 2015 to 272 million units, which would be growth of 18 percent. But the research firm said many tablet users are keeping the devices longer, limiting the market for replacements.

One of the fastest growing segments is "ultramobile premium" PCs, which include devices that can function as both PCs and tablets. Gartner sees the segment nearly doubling in 2014 to 37,000 units, and growing to 64,000 in 2015.

The survey comes ahead of new tablet launches from Apple, expected to refresh its iPad lineup, and Google, which was to unveil an upgraded Nexus tablet using the Android operating system.

Gartner said Android is the largest operating system worldwide when counting PCs, smartphones and tablets, with 313 million unit sales expected in 2014. Apple's iOS and Mac operating systems were second with 167 million unit sales expected, and Microsoft Windows third with 141 million.

Google unveils 'Lollipop' Android system, new devices
Washington (AFP) Oct 15, 2014 - Google on Wednesday ramped up its mobile arsenal, upgrading its Nexus line with a new tablet and smartphone, and unveiling its revamped Android software, to be dubbed "Lollipop."

The US tech giant also announced the launch of a streaming media player for music, movies and videos, which can also allow users to play games via the Android TV device.

"Lollipop" or Android 5.0, the upgraded operating system for mobile, "is designed to be flexible, to work on all your devices and to be customized for you the way you see fit," said Google vice president Sundar Pichai, who heads the Android operations.

With the new operating system, according to the Android Website, "The songs, photos, apps, and even recent searches from one of your Android devices can be immediately enjoyed across all of your Android devices."

The new devices give Google and its Android partners a broader portfolio to compete against Apple, which launched two upgraded large-screen iPhones last month and is expected to unveil new iPads on Thursday.

The Nexus 6 smartphone becomes the newest and largest of the Google-branded handsets, and is produced by Motorola, which Google bought in 2012 and is in the process of selling to China's Lenovo.

This aluminum frame device has a six-inch high resolution screen and a 13-megapixel camera.

"The large screen is complemented by dual front-facing stereo speakers that deliver high-fidelity sound, making it as great for movies and gaming as it is for doing work," Google said in a statement.

"It also comes with a Turbo Charger, so you can get up to six hours of use with only 15 minutes of charge."

On the tablet front, Google partnered with Taiwan-based HTC for the 8.9-inch Nexus 9.

The brushed-metal tablet "is small enough to easily carry around in one hand, yet big enough to work on," Google said.

"And since more and more people want to have the same simple experience they have on their tablets when they have to do real work, we designed a keyboard folio that magnetically attaches to the Nexus 9, folds into two different angles and rests securely on your lap like a laptop."

Google did not disclose pricing for the devices, but said they would be available for pre-order later this month.

With the global tablet computer market showing signs of cooling, Apple's expected unveiling of its new iPads Thursday looks to shore up its position at the high end.

The iPad event in a small auditorium on Apple's campus in the Silicon Valley city of Cupertino comes with Google reportedly set to introduce a new Nexus tablet powered by Android software and manufactured by Taiwan's HTC.

Google-backed Android software has the biggest share of the global tablet market due to the ubiquity of low-priced devices they power, according to Gartner principal analyst Mikako Kitagawa.

Apple tablets driven by the company's iOS software have the second largest market share, with a small portion going to devices running on Microsoft's mobile Windows operating system.

"Apple has a limited addressable market, because Apple products, in general, are not for everybody," Kitagawa said of the company sticking with its formula of premium products at top-end prices.

"I think Apple is going to keep on with the premium segment; I don't believe they are going to have a cheap iPad."

The overall tablet market is moving toward low-cost devices, meaning that hardware makers unwilling to let go of premium pricing will tend to lose share, according to International Data Corporation (IDC) analyst Jitesh Ubrani.

Apple's current line of iPads starts at around $400 for the "mini" tablet and $500 for the larger iPad Air in the US market, nearly twice the cost of many Android devices.

Analysts predicted the Apple event on Thursday to be low-key, showcasing iPads enhanced with features such as fingerprint reading and the Apple Pay mobile wallet which are also built into top-of-the-line iPhones.

- Holding tablets longer -

Freshening the iPad line is not expected to dramatically boost sales in a tablet market that has been cooling.

"A substantial redesign of the iPad is required to help give much needed momentum to iPad sales and the tablet market as a whole," Ubrani said.

Many tablet makers mistakenly assumed that people would replace the devices as often as they bought new smartphones, according to Gartner analyst Van Baker.

It turns out people are holding onto tablets much longer, because they typically supplement other screens and telecom companies don't subsidize prices the way they do with smartphones.

"As long as my iPad 3 does what I want it to do, there is little incentive to get a new one," said Baker.

While the tablet boom appears to have quieted in developed economies where there is more cash to spend on premium products, opportunity is seen in the business world where the devices can make some jobs more efficient.

- On the job -

"One way for Apple to secure their market is by getting more business users," Kitagawa said.

"It is not the most productive device for many types of work, but some jobs that involve moving around are perfect like health care or sales or insurance inspectors."

In contrast, jobs that require sitting in an office tending to data, documents or spread sheets are better suited for now to computers with keyboards, large monitors, and mouse controllers.

System administrators at major businesses long reliant on Microsoft software understandably lean toward Windows tablets, but are often pressured to accommodate personal mobile devices such as iPads that workers want to use on the job.

Microsoft Surface tablets have been geared for business needs and aimed squarely at workplaces.

Tablets won't eclipse personal computers as fast as previously thought, according to market watchers.

"The tablet market is going through a bit of a lag as buyers figure out what it is good for; what they want, and how much they want to spend," said Forrester analyst Frank Gillett.

"Some people figure they can't replace a laptop with a tablet, so are essentially deciding whether to commit to a third gadget in their lives."

IDC earlier this year cut its forecast for shipments of tablets and "two-in-one" devices combining tablet and laptop features to 233.1 million, saying growth would be about half of what was originally predicted.

While shipments in mature markets such as North America and Western Europe were forecast to remain flat, those in emerging regions were expected to climb overall by 12 percent.

Meanwhile, the outlook for personal computer (PC) shipments was less dreary than originally envisioned, due in part to businesses replacing machines powered by outdated Windows XP software.

"The PC (personal computer) is not dead," Kitagawa said.

"Tablets and PCs are going to live together."

gc/rl

APPLE INC.

GOOGLE

HTC CORPORATION

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