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February 7, 2010

iPad to stimulate tablet PC segment, says In-Stat

Expects to create $4bn tablet PC semiconductor opportunity by 2014

By CBR Staff Writer

The debut of the iPad is expected to strengthen the emerging tablet PC segment, creating a potential semiconductor opportunity of over $4.1bn in 2014, according to a report by market research firm In-Stat.

In addition, the study found that other component vendors will also capitalise on the new opportunity or batteries and displays. The potential unit total available market (TAM) for tablets is about 50 million in 2014.

The firm said that tablets, positioned between smartphones and PCs, are attracting the interest of consumer electronics (CE) and computing OEMs. The initial pricing of mainstream tablets should be in the $400-$500 range, based on device bill of material estimates.

In-Stat said that so far only Apple and ICD have indicated carrier strategies, and only Apple offers an entire offering that includes content and applications.

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Jim McGregor, analyst at In-Stat, said: “Tablets have quickly become a high priority for competitors across the value chain, including mobile operators. Even more important, is that the opportunity in tablets is complementary to other mobile devices, particularly smartphones and netbooks.”

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