iPad Will Create Opportunity for Touch Screen Suppliers, but not like the iPhone

There is no doubt that Apple products have been a catalyst for the touch industry – let’s face it, the iPhone was a game changer, but the question being asked is; “Will the iPad be as influential?” 

Our recently published touch screen sensor and display reports indicate that although the iPad will boost touch display and sensor sales for tablets, notebooks and mobile computers, it will not have as big of an impact on the touch industry as the iPhone.  Why?  Well, there are a several reasons, including but not limited to:

• The iPhone was a game changer largely due to its ability to create a highly intuitive human-machine interface (HMI) platform for one of the fastest growing consumer electronic markets, providing increased functionality and improved use experience, not to mention the ‘cool factor’.  This is not the case with the tablet market, as tablets have predominately been used within the enterprise sector (not consumer), so there is a greater burden on the iPad to create a consumer market for this device type.  
• iPhones, unlike the iPad, are provided additional sales momentum by the telephone companies and the notion of renewing phone contracts every 2-3 years.  This rapid renewal of contracts typically ensures a shorter lifespan for iPhones – the iPad does not have this additional support.
• The touch industry has rapidly evolved over the past 3-5 years, with much of the value and ‘coolness’ associated with the iPhone’s HMI already (or in the process of being) integrated into existing tablet, laptops and mobile computers, as well as larger  size displays – this market will not be as ‘wowed.’
• Rapid commoditization, increased competition, diminishing margins, blocking IP and a need to differentiate via innovation and/or price has made volume a critical factor of success to touch solution providers.   Although many have their fingers crossed, most touch sensor and display manufacturers don’t expect this market to reach epic proportions due to device pricing levels and a smaller overall total available market.   For example, in 2009, Smartphones/PDAs accounted for more than 40% of all mobile touch screen displays, whereas tablets/notebooks/mobile PCs represented less than 5%, levels not expected to change significantly over the next 3-5 years. 

Regardless of what happens, solution providers clearly believe that continued consumer adoption of touch will enhance the technology’s position as a preferred interface for a wide range of devices in both brown- and green-field opportunities over the years ahead.