Parks Associates reports popularity of tablets changing CE purchase patterns

Tablets to be Key Topic at CONNECTIONS™ Digital Living Conference in California Next Week.

Six million U.S. broadband households are changing their 2011 CE purchase plans to get a tablet, which is cannibalizing sales in other device categories and inspiring an additional four million households who had no previous intentions to purchase a computing device this year. Parks Associates' report Media Tablets: Analysis and Forecasts shows the products at greatest risk of losing sales are other mobile Internet devices, including netbooks, notebooks, and e -readers. Tablets will also have significant impact on content publishing, including newspapers.


"One year after the launch of the Apple iPad, tablet adoption reached 13% of U.S. broadband households (approximately 10.5 million households), slightly below current netbook and e -reader adoption rates," said Jennifer Kent, a Parks Associates' mobile research analyst. "Mass adoption of tablets depends on consumers' ability to differentiate them from similar CE, and devices that overlap with the tablet will struggle to remain relevant."

The new report shows 26% of households planning to purchase a tablet in the first half of 2011 had originally planned to buy a laptop. Parks Associates estimates 16.8 million tablets were sold worldwide in 2010, with sales booming alongside subscriber growth in 3G and 4G networks.

Chart: http://www.parksassociates.com/report/mediatablets -2011

The tablet presents content owners and distributors with new opportunities for revenue growth. Similar to the impact of the e -reader on book publishing, the tablet is creating new business models and content formats for newsstand publishers. Its portability, connectivity, large display, and access to application distribution networks make it an ideal platform for premium content consumption. These features will attract advertisers, offering opportunities for creative and interactive ads and the benefit of analytics. Publishers will be able to demand premium rates for advertising space.

"Digital publishers must take advantage of the tablet's unique features and provide the user with an experience that goes beyond a digital copy of printed material," said Harry Wang, Director, Mobile Research, Parks Associates. "This strategy requires investment in new digital publishing software that offers interactive features and improves reader engagement. Digital content publishers should also invest in digital advertising solutions and develop premium ad inventory that enables targeting, which will lead to more ad dollars."

Tablets will be a main topic of discussion at Parks Associates' CONNECTIONS™: The Digital Living Conference and Showcase in Santa Clara, June 28 -30. Keynotes from Starz, Motorola, Verizon, and AT&T will discuss new technologies for the connected consumer, and panelists in the session "New Roles of Mobile Devices and Services for Connected Consumers" will focus on new -generation mobile platforms and devices. To register for a press pass or request more information, please visit http://www.parksassociates.com/events/connections -us/media.

For more information about Media Tablets: Analysis and Forecasts, visit http://www.parksassociates.com or contact 972 -490 -1113, sales@parksassociates.com.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA)®, CONNECTIONS™ Europe, and Smart Energy Summit.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com

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