Seven in(ch) Seven

With due regards to Mr Jobs, I think 7 inch tablet is the next market that would determine the winner of compute in both personal as well as enterprise space.

 Here are some of the reasons ..

• Airs and Ultras - PC is already reincarnating into likes of Air and ultra devices. Though they show up in multiple form factors , the most appealing segment is between 10 to 13 inch space. As they further improve in shape, size weight, battery and price , the 10 inch tablet would soon lose its mojo to air and ultras.
• Easy to handle - 7 inch is just easy to manage. More portable and typing friendly.
• Too many choices - One User can't handle all four, I mean a smart phone, seven inch tablet, 10 inch tablet and an air or ultra. Given that smart phone and PC are a must for most. The choice of 7 inch becomes central and most probable.
• The price tag of 200 is comparable to iPod and is very reasonable for worldwide appeal particularly for countries like India and china which have the potential to bump up market share.
• Education-  Price tag and size makes this segment appropriate for K12. As schools adopt new methods for interactive learning such as  Khan academy, it's imperative for kids to move up from iPod to a slightly larger but equally cost cost effective form factor.
• Just data plans - AT&T now offers data plans (without voice)  starting at $15 per month. A more realistic 3 GB plan is at $30 a month with access to 4G network and At&T WiFi network where ever available. For younger generation and home workers, a pure data plan makes sense coz they can use Skype or Tango for occasional voice/ video call.

Given all above, and many more, its no surprise that the battlefield is getting crowded. Here is the top seven lineup

Samsung is obviously the big daddy in this segment and gets the credit of being the market maker with their flagship seven inch Galaxy tab. With their huge manufacturing and supply chain capabilities, and a positive brand recall for Galaxy line, Samsung is poised to gain from this shift.



Amazon is the market leader in this space with Kindle Fire. Being a media powerhouse, Kindle augers well into Amazon's strategy of being the one stop shop for global media distribution. Be it books, music or videos ; Amazon has it all and they are growing the content at an unmatched pace. They can make money thru annual subscripts of Amazon prime while undercutting the prices for devices.

Google has thrown in the hat with announcement of Nexus 7. While Asus brings in manufacturing and distribution, Google wants to popularize their  media "Play"  to compete  iTunes  & Amazon. As maker of Android and being the best software brains, Google obviously has a leg up over both Samsung and Amazon in terms of offering the latest in user interface and apps. Plus the brand name has immense pull worldwide.

Market is hot with rumors that Apple is lining up supply chain for the seven inch model. Even if it's not true, it's only a matter of time when Apple will need to plug this gap. It may not be a factor to Apples's bottom line and may even have a negative impact on otherwise highly profitable line up of iDevices, still it's absolutely essential for Apple to combat the competition here to retain market share as well as developers.

Research in motion badly needs a success. So far, BB 10 based tablets, didn't cut it for them but then QNX is the only third viable operating system in tablet space. Some analyst argue that three is too many from platform standpoint. I personally feel that given the size of this opportunity, market can easily consume up to five different players provided there is differentiation. RIMM needs to play up their strengths on security and reliability that appeals to enterprises. This is their forte and if they play it right , it can create immense value for both enterprises ass well RIMM's balance sheet.

Barnes and Nobles is the dark horse of this race. They got a short in the arm with Microsoft pledging support to Nook. The fact that  Nook's web traffic, in June this year, exceeded Kindle Fire  shows there is a silent undercurrent of support for this device. Clubbed with industry best selection of books and store penetration, Nook may turn out to be a pleasant surprise though they still need to make a tough call - continue with Android or switch to Windows RT?

There are many existing contenders for seventh spot such as Acer, Archos, Asus, Coby etc but I am keeping seventh spot open for Microsoft , Sony or Nokia whoever announces the seven inch model first. Micorsoft has already announced 10 inch surface with windows RT. I think 7 inch model can go to both Barnes & Nobles and Nokia. Sony's 5.5 inch tablet P evoked a mixed response from both form and price perspective. I think they would ultimately standardize on 7 inch model to avoid tweaking with apps.