MaxxoMedia Digital Media and Entertainment Trends

The definition of the Mobile Internet Device (MID) may be somewhat nebulous, given the category overlaps multiple products, ranging from some Ultra-Mobile PCs to certain Portable Media Players. However, there’s nothing nebulous about the MID growth opportunity, with global unit shipments expected to expand by nearly a factor of eight from 2007 to 2012. MID is projected to grow eightfold to spur to 416 million units by 2012, at a compound annual growth rate (CAGR) of 50.6% from 53.8 million in 2007, according to iSuppli. While the exact definition of Mobile Internet Device is difficult to nail down, it’s characterizes as devices that have integrated connectivity for Wireless Local Area Network (WLANs), Wireless Metropolitan Area Networks (WMANs) or 3G-or-higher Worldwide Wide Area Networks (WWANs) and has a maximum size display of 8-inches in diagonal dimension, an instant-on function, an always-connectable capability and a full day’s worth of battery life. MID includes devices like UMPCs, netbooks, smart phones, portable navigation devices, e-book readers, portable media/MP3 players and handheld gaming devices, says the research.

Smart Phones Move to the MID
Among the MID devices included in the forecast period from 2008 to 2012, smart phones are projected to dominate the segment. Estimates that about 60% of all smart phones now are considered MID-class devices, but that figure will rise to cover 100% by 2012. A key gating factor is the inclusion of WLAN or 3G connectivity, and applications like video downloads, gaming and full Internet browsing will proliferate when smart phones attain 3G-speed downlink and uplink capabilities.

E-book Readers Open MID Chapter
Despite their relatively recent arrival on the scene, e-book readers already have achieved 35% MID penetration as of 2008, which will then rise to 76% by 2012. The high penetration primarily is driven by the success of Amazon’s Kindle, with 100% WWAN penetration; and of Sony’s counterpart, the Sony Reader, which has 25% WLAN penetration. Kindle, for instance, integrates ubiquitous wireless connectivity within the e-book reader to deliver real-time news, on-the-go media purchasing and even e-mail applications.

Ultra-Mobile PCs and netbooks adopt MID capabilities
A mere 2% of all UMPCs were considered to be MID-class in 2008, but the figure is expected to grow to 28% by 2012. Key factors increasing MID penetration in this area include continued improvements to instant-on capabilities and battery-life performance.

Gaming Devices
Only a small segment of gaming devices—many lack 3G-or-better connectivity features—meet the MID criterias, 2.8% can be considered MID-class by 2011 if the full set of criteria is brought to bear, with the rate increasing markedly to 15.1% the year after. However, if the requirement for ubiquitous coverage is relaxed to cover only WLAN, then the percentage of gaming devices that can be considered MID-class shoots up to 98.6% in 2008, with the figure rising to 100% by 2011.

PMP/MP3 Players
Portable Media Players (PMP)/MP3 players, no significant volume shipments occurred as of 2008. Only 3% of the devices will be MID-class by 2012, but a potential upside to this market exists if manufacturers increase the amount of WWAN support for the players, which are capable of delivering rich multimedia content and experience.

PNDs
Among Portable Navigation Devices (PNDs), a mere 0.22% currently are MID-class-capable, with the number growing to 10% by 2012. The one criterion driving PNDs for MID functionality is the rate of wireless connectivity, primarily through WWAN. Once enabled, PNDs allow the implementation of solutions such as real-time traffic, rerouting, remote map and database updates, location-aware advertising and purchasing of services such as fast-food orders and gas purchases. PNDs are also unique among MID devices in that they have the automobile as a power source and are, therefore, not limited by battery-life constraints.