iPad brings tablets back in fashion

PC manufacturers are cashing on the popularity of Apple's iPad by relaunching their version of the tablet PC at lower price points for the mainstream segment.

Technology majors like LG and Acer, who had stopped production of the tablet PC by the end of 2008, are relaunching their updated version. Apple's version of the tablet PC and the technology upgrades, which took place last year are influencers. The launch of Windows 7, which supported touch screen devices, reduction in cost of touch panels and entry of the netbook were also contributory factors.

Felix Baretto, business head, notebook PCs, at LG Electronics Middle East and Africa told Emirates Business: "In 2008, we stopped focusing on the product mainly due to the entrance of the netbook and the global economic crisis. The tablet PC was always targeted at the high-end segment but now with technologies targeting touch screen and raw materials costs coming down, the scenario has changed."

According to Baretto, the tablet PC segment will globally touch 10.5 million units by the end of 2010. "The hype was definitely created by iPad and brands like Dell and Lenovo showcasing their products in this category. For LG, tablet PC was not a failed category but the utility and consumption was different. It contributed four to five per cent to our total sales and targeted the top executives."

LG's tablet PC was made available only in certain markets of Europe, Brazil and the Middle East. The manufacturer is planning to launch the product in June at a price point between $550 (Dh2,018) to $600.

Technology majors focused at niche segment like education and healthcare with the tablet PC. "This product was not mass produced but the focus was only on tenders," said Mark Prosser, Product Marketing manager (mobility products), at Acer Computer (ME).

"Acer stopped the production about 24 months ago, that is in the first quarter of 2008 and re-launched the device at the end of 2009. The time was utilised to investigate the touch feature as Microsoft's previous OS versions needed separate features to drive touch features. But now it is built in the Windows 7 version," said Prosser.

Acer has launched four generations of the tablet PC targeting key sectors like education. "The new 11.6-inch tablet is being shipped presently and will be available by the end of April. This time it will be available through the retail channels at a cost between Dh2,499-Dh3,999 and the 3G enabled model would touch at Dh4,999. The product category contributed five to seven per cent earlier to Acer's MEA sales and now with the new focus we expect this to increase to 15 per cent."

Prosser said 3G embedded devices do push up the prices and therefore the manufacturer is also on talks with major telecom firms to distribute these devices in the region. Even for Acer, the netbook category did make a difference in 2009 as the segment gave a boost to Acer's sales last year with 20 per cent being contributed at a local level and 30-40 per cent at a global scale.

These tablet PCs come with the keyboard unlike Apple's iPad, which give these manufacturers an advantage in terms of mobility.

HP has its tablet PC with the touch screen and is planning to launch its version of the slate, which is an e-reader. "The slate is a different gadget and category which will be launched in 2010," said Peter Oganesean, Category Manager, consumer notebooks at HP (Personal Systems Group). "I cannot give a timeframe as this was showcased in January 2010 at the consumer exhibition CES held in Las Vegas. The tablet PC is a slate plus a notebook and will continue to play in the niche category at Dh4,500."

According to Oganesean, HP has been developing a slate device since 2005 and he insisted that they are not introducing the product to compete with other products in the market.

"HP introduced its first tablet PC in 2001, which has always been niche and will continue to be the same. We do not plan to get into the mainstream and bring down prices. There is a premium charged on the product and therefore would not make sense for mainstream retail segment. The product has never been stopped and updated when technology upgrades are made in the industry," said Oganesean.

He does not expect the consumers to go crazy about the new tablet products in the market, as notebook today is more affordable. "Tablet PC comes with a touch screen and not everybody needs it. In 1983, HP introduced the touch technology, and therefore we are not new to the technology. The category contributes five per cent to our sales with a price tag of Dh4,500. We don't expect this to increase as it is a niche segment and a completely new category for the customer," said Oganesean.

Technology companies such as Fujitsu also don't plan to change their focus on the tablet and slate but continue to focus on verticals.

"Its been close to two decades since the tablet has been developed at Fujitsu," said Chandan Mehta, Product Manager at Fujitsu Technology Solutions. "We have always focused on commercial applications and verticals and have no plans to get into the mainstream category with the slate. The tablet PC has been recently launched in retail channels like Carrefour. The costs for the tablet PC are at $1,000 (Dh3,670) while the slate is at $1,400."

This hype around tablet PCs has been created majorly by Apple's iPad which is already in the grey market in Dubai and will soon be made available by its retail partners by the end of May-June time frame.