Usage Model Key To Mobile Internet Devices’ Success

Sep 30, 2008 5:41 PM, MD&D News Staff

Mobile Internet devices (MIDs) combining specialized functions (camera, media player, navigation, etc.) with wireless Internet access seem likely to succeed, and consumers increasingly expect their electronics to connect to the Internet. But makers of these products have a narrow window in which to build devices and business models that get the usage model correct so users will adopt these devices, according to ABI Research.

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“CE (consumer electronics) manufacturers try to stay relevant in the face of phones that perform multiple functions ‘well enough,’” said ABI Research director Kevin Burden. “Mobile Internet devices promise to deliver that relevance, but consumers aren’t clamoring for these new devices yet. That means CE vendors must get the user experience and the economic model right from the start. If consumers are not hooked by a compelling experience right away, they’ll stick with what they’ve got.”

Creating a functional product with an intuitive interface may be the easy part, according to the company. Internet access means service delivery, and the user’s ongoing relationships with the vendor and service provider are equally important. Amazon’s Kindle is proving a new model for devices without upfront service costs. Openwave Systems’ recently announced Passport service allows operators to offer on-demand Internet access to casual mobile data users. Whatever options are developed, said Burden, vendors and operators must find ways of delivering connectivity without forcing users to buy another service plan.

ABI Research’s “Mobile Devices Annual Market Overview” delivers an integrated view of the mobile devices market and examines the unique market aspects of individual device form factors, including mobile handsets, ultra-mobile devices, broadband-enabled consumer electronics, and cellular modems. It includes detailed shipment and revenue forecasts and is a component of the firm’s Mobile Devices Research Service.