Tag: hybrids

Grading My Predictions For 2013

Sigh.

Time to fess up and see how badly I did in last year’s predictions. You can find them all here.

Criticism may not be agreeable, but it is necessary. 
It fulfills the same function as pain in the human body. 
It calls attention to an unhealthy state of things. ~ Winston Churchill

Prediction #1: There Is Little Room For A Category Between The Tablet And The Notebook.

This is still in dispute. Many still feel that a hybrid category between the tablet and the notebook will eventually emerge.

Not me. And it surely didn’t happen in 2013, so I’m chalking this one up as “correct”.

Here’s the thing: The touch user input (finger) is wholly incompatible with pixel specific forms of user input (mouse and stylus). And putting both side-by-side on a single device is not the solution, it’s the problem.

Why (my wife) hates Windows 8? In her words, “It doesn’t do what I’m telling it to do!” ~ Brad Reed (@bwreedbgr)

It’s anecdotal, but that’s about as damning a criticism as a product can receive.

In 1995, Cynthia Heimel wrote a book entitled: “If you leave me, can I come too?” I think that’s today’s de facto motto for Microsoft. Microsoft wants to have it both ways – sell you an all-in-one notebook AND tablet — and consumers are having none of it.

Prediction #2: Tablets Are Going To Be Even Bigger Than We Thought.

Worldwide the number of smartphones will surpass the number of PCs in the next 6 months. ~ Benedict Evans

Screen Shot 2013-12-18 at 17.51.51

Nailed it. 2 for 2.

Tablets were the biggest story in 2013. And they may well be the biggest story in 2014, too.

Prediction #3: Apple Will Create A New iPad Mini In The Spring.

Wrong, wrong wrong. I thought that Apple would target the tablet for the education market. But Apple has opted, instead, to move almost ALL product launches — iPod, iPhone, iPad – and maybe even Macs — to the holiday quarter.

2 for 3.

Prediction #4: iOS will become the premium model, Android will take the rest.

Sounds about right to me.

There a persistent misunderstanding of the Apple business model.

…Apple simply doesn’t care about market share. As a properly capitalist company it cares about the profits…

Apple has repeatedly said that it’s not interested in being a top Chinese or anywhere else smartphone player. It’s interested in being a top player at the top end of the smartphone market which is an entirely different thing. ~ Tim Worstall

No one seriously argues that Burberry should be more like Walmart ((Analogy borrowed from Brian S. Hall.)). Why ever does anyone think that Apple should be more like Samsung?

That makes me 3 for 4.

Prediction #5: Samsung Will Be Forced To Create Their Own Ecosystem.

Hmm. Lots and lots of talk about such a thing happening but almost zero action. Got that one definitely wrong.

Final score: 3 for 5.

Conclusion

I don’t really have much faith in my predictions anyway. I don’t pretend that I’m a seer who can peek into a future that no one else can see. As I often say, I prefer to predict the past — it’s safer. Easier too.

I more or less see my role as trying show people that the future they’re resisting is already here today — that the things that they are denying have already happened.

To most men, experience is like the stern lights of a ship,
 which illumine only the track it has passed. ~ Samuel Coleridge

Here’s a couple examples for 2014.

A) Microsoft is in more trouble than people seem to realize. Microsoft is making lots of money — which is good — but consumers are about to fire Microsoft from its current job and Microsoft doesn’t have any obvious prospects for obtaining future income — which is bad, bad, bad.

B) Phones and tablets are a thing. Notebooks and Desktops are a niche. Still getting lots of resistance to this fait accompli, and that resistance is warping the analysis of many.

C) Android is not the Windows of the 1990’s. Apple is not the Apple of the 1990’s. If you can’t see that today’s marketplace is entirely different from the computing marketplace of the 1990s, it’s because you refuse to see what is right before your eyes. The evidence is all around you.

There’s more, of course, but this isn’t a prediction article, it’s a mea culpa article. I was extremely conservative in my predictions and I still got 2 of 5 wrong. C’est la vie.

Happy New Year to all…and one last prediction:

I predict it will be an unpredictable year.

Putting Together The Pieces of the Personal Computing Puzzle

images-34As I read other’s thoughts on personal computing, I am sometimes struck by the fact that we tend to view the world the way it was rather than the way it is. Not only are we not good at seeing the future of personal computing, we’re not even very good at seeing its present.

With that in mind, I thought I’d take a look at some of the new pieces of the personal computing puzzle – smartphones, tablets, hybrids and phablets – in order to speculate on how those pieces might be fitting together in new and changing configurations.

Zero Computers

Hard as it may be for us to believe, most of the world – residents of third world countries, children, seniors and those who simply have no interest in computing – still don’t own even a single computing device. (Believe it or not, my thirty-something next-door neighbors do not own a computer.) But this is all rapidly changing.

The smartphone is allowing millions upon millions of former non-users to put the power of the computer in their pocket. The smartphone is small, relatively inexpensive and more powerful than the computers that were used to land men on the moon. Further, the introduction of the touch user interface has made computing more accessible to the young, the old, the computer illiterate and the computer phobic.

“In the fourth quarter of 2012, mobile PC shipments decreased 11 percent while desktop PC shipments declined 6 percent year-on-year,” said Isabelle Durand, principal research analyst at Gartner.

We are inundated with stories of how computer sales are declining. But those are desktop and laptop sales. Sales of personal computing devices – phones and tablets – are booming.

Takeaway #1: Personal computing is growing and growing rapidly.

One Computer

Yesterday, if you only had one computer, that computer was likely to be a desktop. Or possibly a laptop.

Today, if you only have one computer, that computer is likely to be a smartphone. The power of the internet, email, texting, phoning, etc. – all in your pocket, all for a relatively reasonable price. People from the remotest portions of the globe are using smartphones to conduct business and enhance their personal lives.

Tomorrow, if you only have one computer, that computer may be a tablet. A tablet with a dumb phone (data free, no monthly payment) is a powerful combination. The tablet is less portable than the phone but its added battery life and screen size makes it a formidable stand-alone computer.

Takeaway #2: The first computer that most people will own is likely going to be a phone or a tablet, not a laptop or desktop.

Two Computers

In the past, many of us used to own both a desktop and a laptop computer. As laptops came down in price and increased in power and portability, most moved away from desktops and toward laptops as their one and only computing device.

Today, the laptop and smartphone combination is extremely popular – the laptop for our heavy duty computing and the smartphone for computing on the go.

In the future, the two-computer combination of choice will be the smartphone and the tablet. Both the phone and the tablet have the same touch operating system so the learning curve is almost nonexistent and data transfer is a breeze.

Hard as this may be for geeks like us to fathom, the tablet is all the high-end computer that most people need. Spreadsheets like Excel and heavy-duty word processing programs like Word might be de ri·gueur in the Enterprise, but they are anathema to the average computer user. Asking most computer users to buy a laptop or desktop is like asking a gardener to buy a backhoe in order to do their gardening. A backhoe is indispensable for professional construction workers – but most of us aren’t professional construction workers and most of us aren’t professional accountants, programmers or page layout designers either. We don’t need professional computers to do the work we most often do. We just need what works.

As an aside, I am intrigued by the idea of a computer watch and tablet combination. The watch would serve the purpose of making and taking calls, texts, short emails, etc, notifying us of incoming and upcoming events, allowing us to see small snippets of text, graphics and videos, allow us to use voice input when voice input is appropriate and allow us to rapidly reference programs that rely on geofencing and geolocation.

No one is even proposing such a device at this time. I only mention it because I can easily see how such a watch would take care of our low end, on-the-go, computing needs while our tablets would handle the rest of our computing tasks. Whatever the computer watch turns out to be, if anything, I’m sure that it will be as different from what I envision as the long-expected iPod phone differed from the iPhone that Apple finally provided us.

Takeaway #3: The phone and the tablet may be all the computing power that many will ever need.

Three Or More Computers

For those of us capable of purchasing three or more computing devices, the most obvious solution is some combination of smartphone, tablet and laptop or desktop.

If you had told me in 2005 that people would be buying three or more computing devices, each costing $500 and up, I would have argued against it. First, it would be cost prohibitive. Second, it would be counter-intuitive. People want convenience, not complexity. Why buy several devices when one will do?

Yet today we’re moving more and more toward a multi-screen world and – I would argue – more and more away from multi-purpose hybrids. We’re moving toward several computing tools that do specific things well rather than a single tool that tries to do everything well. How can this be?

As to cost, well, we pay for what we value. Smartphones and tablets do some tasks much, much better than laptops and desktops do. It’s not a question of paying for three computing devices. It’s a question of paying for three tools that excel at performing three very differing tasks.

A gardener buys both a shovel and a trowel because they perform very different tasks. He doesn’t regret the fact that he is buying two shovels — one large and one small. He focuses on what he is trying to accomplish, not on how he can use a shovel as a trowel or a trowel as a shovel.

As for convenience, well, it’s perfectly reasonable to think that we should have one computer perform all of our computing tasks. It’s perfectly reasonable – and perfectly inaccurate.

Notebooks and laptops, like shovels and trowels, do very different things. Trying to get one computer to perform both purposes provides us with a compromise, not an acceptable solution. Swiss Army knives are very useful on a camping trip. But when we’re not camping, we use spoons, forks, knives, corkscrews, etc., not a Swiss army knife. Similarly, a hybrid is useful if we’re in a situation where we’re forced to use only one device. Only most of us are never in that situation anymore.

“Tablets have dramatically changed the device landscape for PCs, not so much by ‘cannibalizing’ PC sales, but by causing PC users to shift consumption to tablets rather than replacing older PCs,” said Mikako Kitagawa, principal analyst at Gartner. “Whereas as once we imagined a world in which individual users would have both a PC and a tablet as personal devices, we increasingly suspect that most individuals will shift consumption activity to a personal tablet, and perform creative and administrative tasks on a shared PC. There will be some individuals who retain both, but we believe they will be exception and not the norm. Therefore, we hypothesize that buyers will not replace secondary PCs in the household, instead allowing them to age out and shifting consumption to a tablet.”

This is a fascinating observation. Today, most view laptops and desktops as the one and only possible computing solution. There are even vicious fights on the internet in which commentators passionately deny that tablets are even personal computers at all.

But what about tomorrow? Tomorrow we’ll live in a world where tablets are our 1-on-1 devices and laptops and desktops are shared because of their cost and limited uses.

Takeaway #4: Our computing devices are diverging, not converging. We’re not looking for one tool to do it all, we’re looking to use the tool that best fits the task at hand.

Conclusion

None of this may seem controversial to you…or ALL of this may seem controversial to you. To me, the things I’ve stated are so obvious as to border on the trite. Yet I recognize that many – and probably most – do not share my views. Today we have many new personal computing pieces. How these pieces fit together will determine the future of computing. It’ll be fun to see what this puzzle looks like when it’s finally put together.

Should Apple Make a Hybrid or Convertible PC?

In a Tech.pinions piece I wrote a few weeks back, I stated that in our talks with IT directors they have been sharing with us their interested in the hybrids or convertibles that are just starting to get into the marketplace. Products like Lenovo’s Yoga or HP’s Elitebook Convertible are attractive to them for various reasons, but the main one is that instead of having to support a separate tablet and laptop, these converged products give them both in a single package.

An IT capable tablet might cost $600 or $700 and an IT grade laptop might cost upwards of $900- $1300 depending on configurations. These convertibles or hybrids are priced around $900-$1300, which is cheaper than buying a separate laptop and tablet combined. Thus, cost of support and cost of ownership is reduced and with IT budgets being stretched these days, lower priced, yet highly functional devices like these hybrids or convertibles makes a lot of sense to them.

We are also seeing some real interest in hybrids and convertibles with SMB and some consumers as well. The compactness of having a 2-in-1 device seems to be of real interest to them as well. At a personal level, I have used a Bluetooth keyboard with an iPad for over a year and in many cases, this has replaced my laptop. However, I still need my laptop to handle what we call heavy lifting tasks like managing my media, doing large spreadsheets or complex documents.

Looking to the Future

In my 2013 predictions column last week, I suggested that hybrids and convertibles could be a sleeper product next year and could catch on with business users in a big way. However, in this same column I made a bolder prediction that Apple would create something I called the AirPad or iPadAir that possibly would be ultrathin like the current MacBook Air and be more like an actual laptop but the screen would detach and become an iPad. Since I made this prediction I have had a lot of calls and emails from people who today have iPads, but tell me they would love to have an iPad/laptop combo device and they would be first in line to buy it.

There is one big problem with my prediction of an Apple hybrid though. Apple CEO Tim Cook has gone on record saying that Apple does not believe this type of device makes sense. They appear heavily opposed to this idea and seem to stand strong around the idea that a laptop is a laptop and a tablet is a tablet. At the moment, you can’t argue with their logic as they are selling a record numbers of MacBooks and iPads, and they may be right. Hybrids and convertibles from the PC crowd have only been out for a short time. Microsoft’s Surface product being the poster child for hybrids also clouds this issue since it acceptance in the market has been lukewarm at best.

Given the type of work we do at Creative Strategies, we get to see a lot of products behind the scenes before they ever hit the market. Over the last three months, we have seen about a dozen hybrid’s or convertibles that will hit the market in Q1 or Q2 of 2013 and some of them are stunning in their design and functionality. On some of them, the screens stay attached and either slide down over the keyboard to become a tablet, or they twist and fold down to also become a tablet in its own right. In our work, we define these types of products as convertibles.

We have also seen a lot of what we call hybrids, in which the screen completely detaches from the keyboard and becomes a much lighter stand-alone tablet. In both cases, some of these are ultra-thin and extremely well designed and I can’t help but believe that when these products hit the market interest by business users and consumers will be piqued. Hybrids dual functionality as a full laptop as well as a real tablet, along with lower pricing than if you bought the tablet and laptop separately, will resonate with many people.

I have also been hearing that the PC side of the house is very bullish on these two-in-one designs and since most of them fall under Intel’s ultrabook designation, they will be heavily promoted next year as part of an increased campaign to get people to buy Ultrabooks. Because of the innovative designs in hybrids and convertibles, which are really eye catching with most priced under $1000, this duality of design and functionality should get a lot of attention next year.

What if the Market for Hybrids Takes Off?

If our prognostication that hybrids and convertibles are correct, and they really take off, Apple will have to look harder at possibly creating a similar type of product for their customers. Today they just let them go out and buy a third party keyboard and force their users to piece together their own hybrid solutions. We have talked to a lot of people who have done this and just love the fact that in a very small package the iPad becomes a powerful productivity tool as well as one that they can use for consumption of media, pictures, etc.

There is strong precedent as well that a product Apple said they would never do they eventually bring to market anyway. Steve Jobs said Apple would not get into phones. And he also said he believed 7” tablets were worthless. However, market dynamics have a way of changing Apple’s position on products they dismiss as not being viable for them to do.

That is why I believe that if hybrids and convertibles really strike a chord with consumers, Apple will have to respond to this possible threat to them, especially in business markets where these types of products are garnering a lot of interest now. Imagine a MacBook Air like design with an iPad tablet that detaches. Given Jony Ives brilliant design acumen, I could imagine an Apple hybrid that would not only be competitive with the PC crowd, but one that would re-define the market for these types of products in the future.

We are in the very early stages of bringing hybrids and convertibles to business users and consumers, so it is too early in the cycle to predict with any certainty the level of adoption of hybrids. But our early research in this area continues to point to the fact that these types of products could be attractive to a large amount of users, and if they do take off and become a threat to Apple, it would not surprise me if Apple responds in kind and creates a product that could turn this market upside down.

Why Apple is Wrong About Convertibles

On Apple’s last earnings call, CEO Tim Cook responded to a question on Windows 8 convertibles by saying, “You can converge a toaster and a refrigerator, but those aren’t going to be pleasing to the user.” At first glance, this makes total sense, and from the company that brought us iPod, iPhone and iPad, this has wisdom. But as we peel back the onion and dig deeper, I do not believe Apple is correct in their assessment. As I wrote here, I have long-believed that convertibles would be popular in 2013 and I still believe convertibles will be a thriving future market, albeit not as large as notebooks or tablets.

Mashups between two devices are rarely successful, particularly in mature markets like PCs. I have researched, planned and delivered 100’s of products in my career, and very rarely have I seen two purpose-built products combined to create something real good. The problem becomes that by combining two products, the result becomes good for no one. The primary reason this becomes the case is that you have to make tradeoffs to make the combined product. By combining most products, you are sub-optimizing the separate product and what they uniquely deliver to their target markets. Convertibles have that possibility, but if designed appropriately as I outlined previously, this won’t happen.

Cars give us a few examples to work from. As the car industry matures, we see more and more specialization. There are now sedans, coupes, mini-vans, SUVs, mini-sedans, sports cars, trucks, truck-hybrids, etc. Specialization is the sure sign of a mature market as consumer’s tastes have gotten to a point where they know exactly what they want and the industry can profitably support the proliferation of models. Industry support is a very important in the industry must be able to afford all this proliferation. The auto industry supports this through common parts that are shared like chassis, engines, and electronics.

What does this have to do with convertibles? Ask yourself this question: If my SUV could perform like a Cayman Porsche, would I like it? Of course you would; it is called a Porsche Cayenne. The problem is, you could pay up to $100,000 for it. Want your sedan to drive like a Cayman? Just get a Porsche Panamera. The problem, again, is that is around $95,000. The expense isn’t just about the brand. Porsche invested real R&D and provides the expensive technology to make these “convertibles” perform well.

There are similarities and differences between the Porsche Panamera and Windows 8 convertibles:

  • Price: Buyers will only need to spend an extra $100-200 more than a tablet to get a convertible. Many will make that choice to have the best of both worlds. The average U.S. car is around $33,000 while the Panamera is around $100,000, three times the average. One argument Apple could have is that if future, full-featured tablets become $299, the added price could be too much to pay for the added convertible functionality.
  • Low “Sacrifice Differential”: This is Apple’s strongest point, as in many mashups, combining two products results in something that isn’t good for any usage model. “Fixed” designs will need to be less than 13mm thick and the “flexible” designs (ie Transformer Prime) need to be less than 18mm thick with keyboard. Otherwise, the convertibles will be too thick to serve as a decent tablet at 13mm or thicker than an Ultrabook over 18mm.
  • Transformation capabilities: Convertible form factors like the Transformer Prime can convert into a “notebook” with an add-on peripheral, but cars cannot. I wish there were a 30-second add on kit that could turn my Yukon into a 911 Porsche but there isn’t. Related to PC convertibles, if you have ever used the Asus Transformer Prime, you know what I am talking about. It is one of the thinnest tablets, and when paired with its keyboard, is only 19mm thick. One of the great features of the Prime is that the keyboard provides an extra 40-50% battery life boost that actually adds utility. Windows 8 for the first time supports the lean-forward and lean-back usage models. As a tablet, the users uses it with Metro. As a “notebook” clamshell form factor, the users can use Metro and then use Windows 8 Desktop with the trackpad and keyboard. This has never existed before and Apple doesn’t have this capability in iOS or OSX.
I do believe that convertibles ultimately will have space in the market as they serve to eliminate, for some users and usage models, redundancy of having two devices. OEMs must be particularly careful in how thick they make them. The original iPad was around 10mm and that was pushing some of the boundaries, particularly with reading books. The thicker the designs, the less desriable they become as they will not make a very good tablet. Flexible designs like today’s Asus Transformer Prime, when connected with Windows 8, could be a lethal market combination as it combines a thin tablet and a keyboard when you want it. Gauging by how much shelf-space is devoted to iPad keyboards, I must conclude that consumers are snatching these up in high volume.
I believe Apple is wrong about convertibles, but on the positive side, Apple’s warning gave the entire industry pause for thought. Interestingly, it provided the opposite effect of what I believe Apple intended, which was to freeze the market. Instead, it indicated that Apple was not going to do it, which motivated more OEMs to build, given they wouldn’t have to worry about Apple. While the volumes for convertibles won’t be as large as tablets or notebooks, I do believe they have a place in the market in the mid-term.

Intel and Microsoft’s Secret Weapon Against Apple

Intel and their partners are about to launch the biggest promotion in a decade for a new product category called UltraBooks. Microsoft is also about to launch a major update to Windows called Windows 8 that introduces a new user interface based on touch with their new Metro UI. Together they are critical products for the future of each company individually.

Form Factor Evolution

In the case of UltraBooks, I actually see them as the natural evolution of laptops and not revolutionary as Intel would like us to think. Rather, they take advantage of the industry’s constant push to make things smaller, lighter, thinner and have better battery life. For mainstream consumers who have had to lug around their rather bulky laptops for the last 5 years, they would be justified in asking Intel and other Wintel vendors “what took you so long?” Given the fact that Apple has had their MacBook Air on the market for 5 years and it has defined what an Ultrabook should be.

With Windows 8 and Metro, Microsoft is also following an evolutionary path towards touch interfaces with their Metro based smart phones and soon to be Metro based tablets and PCs. Again, consumers could ask Microsoft “what took you so long?” since Apple has had their touch UI on the iPhone for 5 years and on their iPads for 2 years.

But both products have some interesting challenges attached to them when they launch later this year. In the case of UltraBooks, they most likely will have starting prices of at least $799-$899 although I hear there could be at least one that is pretty stripped down coming out at around $699.00. At these prices, they completely miss the mainstream laptop market that represents the bulk of laptops sold and are priced from $299 to $599.

In the case of Windows 8 and Metro, while Metro is great on Microsoft’s phones and works very well on the tablets I have tested it on, it does not translate well to the laptop or PC since 100% of existing PCs don’t have touch screens on them. And most of the PC vendors are not putting touch screens on the majority of their new laptops because to do so adds at least another $100-$150 in cost to the customer. If you have tested the consumer preview of Windows 8 and Metro on an existing laptop, you know how frustrating it is to use it on existing trackpads. I consider this an Achilles’ heal for Windows 8 and one that could really hurt its short-term prospects.

To be fair, Microsoft has recently (three weeks ago) released recommended guidelines for next generation track pads and a new design I have seen from Synaptics could make laptops work well with Metro once it gets into new laptops. But this should have been something Microsoft focused on a year ago and had all of the new laptops “Metro” enabled at launch. My sense is that Microsoft should have only launched Metro on tablets this year and gradually moved Windows 8 Metro to the consumer PC markets once they had laptops optimized for it.

Instead, I see a lot of consumer confusion on the horizon when they try to use Metro on existing trackpads and any other non-touch input device, as the experience will be confusing at first and frustrating afterwards. Also, you notice that Apple has not put touch screens on their laptops and desktops and instead, worked extra hard to create trackpads and external trackpads that map to the touch experience on the iPhone and iPad.

I consider the initial pricing for UltraBooks and putting Metro on laptops and desktops issues that could slow down any early adoption of these products this year and perhaps deliver a graduated adoption in the future. The two companies do have a secret weapon in the works that could get them a lot of kudo’s from the marketplace and be a key component in getting users really interested in Intel and Microsoft again.

A New Category

The secret weapon comes in the form of a new form factor often referred to as “hybrids.” These are either tablets that can be docked into a keyboard, turning them into a laptop or a laptop with a detachable keyboard. You might think they are one in the same, but they are very different in terms of design goals. In the case of the first, the design is specifically around the tablet and the keyboard dock is modular. We already have a lot of examples of this with the iPad where the tablet is the central device and the attachable Bluetooth keyboards are more of an after thought. In this case the keyboard just supports the input functions of the tablet. The same is true with the Asus Transformer line of devices.

But in the latter case, the design is around a slim laptop case and the screen (tablet) can be taken off and used as a tablet. I believe this latter design is the secret weapon that Microsoft and Intel can use against Apple and at least on paper, give Apple a run for the money especially in business and the enterprise. To a lesser extent it could be hot in some consumer segments where the keyboard is critical to what they do with a tablet and want a laptop centered experience as well.

This is where Apple’s current strategy can be challenged as they are offering these market two distinct products. There is the iPad that stands by itself, and then the MacBook Air, their UltraBook that like the iPad, also stands by itself as a separate product. The key reason is that each has their own operating system and although Mountain Lion, Apple’s new version of OS X brings a lot of iPad like iOS features to OSX, they are still separate and distinct operating systems.

But with the introduction of Windows 8 and used especially on a laptop centered hybrid in which the screen (tablet) can be detached and used as a true tablet that takes full advantage of Metro, Microsoft and Intel can give their customers the best of both worlds in a single device. When in “UltraBook” laptop mode, users can use Windows 7 and its comfortable UI they are used to and have available to them the over hundreds of thousands of Windows apps as is. But when the screen detaches, it automatically defaults to the Metro UI and the touch experience is now central to the device. Now apps designed for Metro can give the users a rich tablet experience out of the box. Sure, they could default to old Windows programs if needed, but running those on a tablet is clunky at best.

If done right, the user would end up with a Windows 8 UltraBook with a detachable screen (tablet) and have to only buy one device instead of two. Our research shows that IT and even some consumers would have no trouble paying $999 and above for this combo product. At this price it would be a bargain. Most IT purchased laptops are in the $699-$999 range now and those who bought iPads to augment their users work experiences cost at least $599 so a combo device say at even $1299-$1399 is more then reasonable for them. Intel knows this and believes that as much as 50% of all Windows tablets will be hybrids. And Microsoft will push these types of designed products especially if the uptake on Windows 8 on laptops doesn’t take off as planned.

Could anything potentially derail Intel and Microsoft’s “hybrid” strategy? Well, if Apple applied their great innovative design knowledge to creating a hybrid that blends the iPad and the MacBook Air into a single device, it could have an impact their ability to dominate this market. On the other hand, it would validate Intel and Microsoft’s strategy as well. If they beat Apple to the market with their version, which is highly likely since at least four hybrids are set to come out by Oct, it could be the “hero” product of the launch that shows users the value of an X 86 ecosystem and highlight to Windows users the need for Ultrabooks and Tablets and Win 8.

An iOS Laptop is a Compelling Idea

Our friend Harry McCracken wrote in his CNET column yesterday about why he believes the world needs an iOS laptop. James Kendrick of ZNET shared his thoughts on Harry’s article pointing out that it is a good idea but that he doesn’t think it will happen anytime soon.

Both Harry and James have formed opinions on this matter largely because of the latest Zagg Folio case for iPad 2. As a part of our own research, we have been using this case as well for sometime and have been bringing this solution up in our conversations with industry executives.

Our opinion is that the limitations of touch computing in terms of text entry, formatting, etc are largely offset with the combination of a keyboard. That being said there are still significant challenges with this approach which need to be addressed.

Firstly, an iOS laptop, or any tablet/ laptop combo will be storage limited. Due to the nature of the tablet form factor and use cases there will simply not be hundreds of gigs of storage in these devices for some time. The case can and should be made that consumers who purchase a iOS laptop or tablet/hybrid may not be buying these devices to fully replace a notebook but for many it will suffice none-the-less. Therefore cloud services could be a requirement for devices like an iOS laptop or tablet/PC hybrid to be fully embraced.

The biggest failing I have found in using the iPad 2 with the Zagg Folio case is text formatting and document editing. Going back through and fixing words, deleting sentences or paragraph’s is still a cumbersome experience using touch only. It is not impossible, but this is one area where I prefer a mouse and pointer.

In reality an iOS laptop or tablet/PC hybrid could very well find its niche in what was formerly the Netbook category, a category that at one time was selling 30 million units a year.

Tim points out in his column today, that we could see a resurgence of the Netbook like category with new ultra-thin PC(which are not UltraBooks) that are specifically targeting the low end, basic PC user category.

We remain convinced that there is still a large opportunity in the sub $500 range for a class of computing product. It may very well be that we see a range of form factors target this market and the tablet/PC hybrid being one of the centerpieces. Tim wrote in depth about this new hybrid category in his PC Mag column titled “Make Way for Hybrids” a few weeks ago.

This could be one of the most exciting categories to watch as we see vendors experiment with the combination of touch and mouse and keyboard computing. I agree with James, in that if Apple did do something in this area it probably would not be soon, meaning this year.

Obviously, I would love to see what Apple could do in this area of a iOS/Laptop combo. However, they are also smart enough to be aware of some of the challenges that remain in order to make a device in this category that does not feel cheap, or present a sub-par user experience. For now, personally, I would accept being able to run iOS apps on my Macbook Air.

We do expect innovation in this category as well as fierce combination and hopefully creative innovation. What do you think?

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