IMS Research: Market Dynamics Benefit Uptake of Netbooks & MIDs
By Ben Robinson on Sunday, May 3rd, 2009 at 4:38 PM PST In Research, The Digital Life

The Asus Eee PC is a great example of a netbook
Ultra-mobile devices that include netbooks, mobile Internet devices (MIDs) and ultra-mobile PCs (UMPCs) are forecast to see considerable uptake in 2009 and 2010, albeit the slow economy. Based on a recent study, IMS Research is forecasting that over 50 million connected ultra-mobile devices will ship in 2009, excluding smartphones.
A new study, Emerging Ultra-mobile Device Markets, reveals that many OEMs are actively deploying new products that would fall within three ultra-mobile categories. Anna Hunt, report author, comments:
“Netbooks and MIDs have the opportunity to gain mass market appeal very quickly, considering low up-front cost. Operator subsidies, connectivity, and compelling content and services will likely make these products even more desirable to a variety of consumer types.” IMS Research forecasts that 207 million ultra-mobile devices, excluding smartphones, will ship in 2014. Hunt adds, “Many OEMs are optimistic that consumers will look towards low-cost netbooks instead of full-featured laptops when replacing a desktop PC or as an ideal low-cost product for a child.”
3G-enabled netbooks are also believed to see strong adoption due to subsidized distribution by carriers, with T-Mobile (NYSE: DT), Orange, and AT&T (NYSE: T), amongst others, expected to drive much of the volume. UMPCs are the one segment of the ultra-mobile device market that will likely see little growth, especially in 2009, due to the niche appeal and high cost of these products.
Connectivity is a key feature in ultra-mobile devices. IMS Research forecasts that in 2014, 64% of ultra-mobile devices shipping, including smartphones, will be equipped with three or more connectivity technologies, such as Wi-Fi, 3G and Bluetooth.

