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May 14, 2009

Technology Innovation Heats up Ultra Mobile Device Market

By Narayan Bhat, TMCnet Contributor

The battle has really begun to get fierce in the ultra mobile device (UMD) market as technological innovation has kept the addition of new functionalities steady - blurring the lines of differentiation among brands and product categories.
High-tech research firm In-Stat (News - Alert), has uncovered this as part of its latest findings and notes that, “a real dogfight is at hand in the ultra mobile device (UMD) market, not only among various brands but also among different categories within the market.”

According to the report, technological innovation has virtually changed the rules of the game. Today, almost every device has functionalities to access the Internet and, as a result, the battle for the consumer dollar among mobile Internet devices (MIDs), ultra mobile PCs (UMPCs), portable entertainment devices, and smartphones has increased.

“The introduction of the MID and UMPC platforms has ignited the market for mobile devices that combine communications, computing, and entertainment functionality around the use of the Internet,” says Jim McGregor, In-Stat analyst.

“MIDs and UMPCs still face challenges in overcoming performance limitations and in attracting interest from both consumers and carriers. These platforms must create definitive positions in the mobile market as an increasing number of other cellular and consumer devices become connected for more specific uses and applications.”

Interestingly, the success of the device is in the hands of carriers as they have to determine which business model and device they will choose from to remain successful.

According to In-Stat, MID & UMPC shipments will reach 19 million units by 2013, while the total market for UMDs will approach 656 million units in the same year.

Recently, ABI Research (News - Alert) also predicted that worldwide MID shipments will exceed 90 million units by 2012, and that the market will post 167 percent CAGR from 2008 to 2013.


Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan’s articles, please visit his columnist page.

Edited by Stefania Viscusi

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