Summary
Mobile Internet devices (MIDs) could be the wave of the future. The MID market is clearly up against challenges, especially for those devices that focus on basic computing rather than a specific app. Chipset and mobile broadband providers are rallying behind the opportunity, but it may take some convincing for the rest of the market to find the value in the middle.
Analysis
MIDs often are lumped into the same category as netbooks, ultramobile PCs (UMPCs) and e-mail–only devices, but they are not one. a MID is a dedicated PC companion device that ultimately is driven by the application with which it aligns. Such devices have a 5- to 8-inch display, a touch-screen panel or other “touch” user interface, and keypads are optional — unlike on a UMPC or netbook. The distinction between MIDs and other ultra-mobile devices lies in the size, the underlying processing power and the level of connectivity.The expectation of the smaller, truly mobile devices is that just like your BlackBerry, it’s connected all the time. It is supposed to be a more portable way of being able to use the Internet, but use it with the same experience as you have on your desktop.
It’s likely that MIDs will be popular among those with a strong need for communications and access to e-mail, presentations or spreadsheets for viewing while mobile. As for social networking, consumers could take their experience on the go with a dedicated device.
While the global market already has a few early-stage examples of MIDs, it will be some time before the market achieves any semblance of mass. When it does, devices are likely to come from many players in the ecosystem of PC original design manufacturers (ODMs), handset manufacturers and consumer electronics vendors. The wireless operators, however, will need to get on board with opening their networks and adopting a data-centric view.
As the most direct distribution channel to end users, service providers play a critical role in the MID value chain. They have the ability to bundle services and experiment with new technologies and business models. They also have a vested interest in devices that drive average revenue per user as their voice revenues become increasingly saturated.
Initial expectations from several firms put the market at exploding this year or next, but with the economic downturn and recent success of fellow middle-ofthe-road netbooks, it could be 2012 before MIDs take the spotlight. We expect MID shipments to increase steadily from 3 million in 2009 to 30 million by 2014 — a sizable market, but no more than a small fraction of the combined smartphone and laptop market.
