2015 - Day 1

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12 | 2015 INTERNATIONAL CES DAILY | JANUARY 6-9, 2015 TABLETS CESWEB.ORG #CES2015 BY STEWART WOLPIN S ales of tablets continue to grow – just not at the double-digit trajectory they've been on. According to IDC, worldwide tablet sales saw a "massive deceleration" last year, growing "only" 7.2 percent, down from 52.5 percent growth in 2013, with Apple's iPad suffering its f rst year of declining sales. While growth has slowed, diversity has sped up. In the less than f ve years since Apple f rst started selling the iPad in April 2010, the tablet business has grown from a single 9.7-inch phenomena to mod- els here at International CES ranging from 7 to, no kidding, 65 inches. Some tablets include with a pen or stylus included and some without, some two-in- one models with detachable keypads and some not, some with cellular connectivity some Wi-Fi-only, some running a version of Android others running either a desktop or mobile version of Windows. Most remarkably, perhaps, is that tablets on dis- play around CES range in price from $1,699 all the way down to $59.99. One reason for the relatively and admittedly oxy- moronic quick slowdown in tablet sales is the rel- atively quick uptake by consumers. According to the Consumer Electronics Association (CEA), tablet penetration has already reached 55 percent of U.S. homes with an Internet connection. Another anchor on current tablet sales is the low- er-than-expected replacement rate, with consumers holding onto their devices for three or four years be- fore replacement. Even though the tablet market is still growing, the retail prof t opportunity may not be. The aver- age price of Android tablets has fallen 53 percent since 2011 according to Futuresource, to $140. The increasing number of no-name brands selling at im- pulse prices provide little room for retailer prof t. While tablets are getting cheaper, they also are getting more powerful with easier-to-see screens. Not only are the least-expensive models now equipped with at least 1,280 by 800 displays, many are now sporting 64-bit processors. Consumers are buying not only less expensive models, but smaller ones as well. Future- source reports 7- to 9-inch models made up 65 percent of shipments last year. But thanks to the uptake of larger screen phablet smartphones, the smaller tablet action seems to be moving away from 7-inch models to- ward 8-inch editions. At CES, a number of vendors at varying points of the product spectrum such as Leno- vo, Acer, Toshiba and E Fun all will be unveiling new 8-inch models. Tablet Sales Slowing, But Still Growing CL CL CL CL CL CL CL CL CL CL IC IC IC IC IC IC IC IC IC IC K TO TO TO TO TO TO TO TO TO TO E E DI DI DI DI DI DI DI DI DI DI T MA MA MA MA MA MA MA MA MA MA ST ST ST ST ST ST ST ST ST ST ER ER ER ER ER ER ER ER ER ER T T IT IT IT IT IT IT IT IT IT IT LE LE LE LE LE LE LE LE LE LE 59 71 77 78 78 82 143 180 208 229 141 214 257 286 307 0 50 100 150 200 250 300 350 2012 2013 2014 2015 2016 Rest of World USA TABLET GROWTH SLOWING – US CLOSE TO PLATEAU Consumer Tablet Shipments 2012-2016 © 2014 Futuresource Consulting Ltd Shipments (M) Toshiba Breaks Up Portégé 2-In-1 BY STEWART WOLPIN BOOTH 11028 Instead of selling a high-end 2-in-1 tablet PC SKU and separate high-end tablet SKUs, Toshiba will let its customers buy just the screen portion of its new Portégé Z20t full Windows two-in-one. In addition, the company will use International CES to launch its f rst stylus-enabled Windows 8 tablets, 8- and 10- inch Encore 2 Write editions. This week, Toshiba will start selling the Windows 8 Portégé Z20t, a 12.5-inch tablet plus keyboard two-in-one. Each piece contains its own battery, the tablet with 9.1 hours of power and the base with an 8.4-hour cell, combining to provide a combined 17.5 hours of work and play. The tablet top detaches via a single click, and the base includes a full jack array and an emergency pen stylus. A digitizer pen will be sold as an accessory. The Portégé Z20t will be sold in versions with either 4GB RAM/128GB SSD or 8GB RAM/256GB SSD for $1,399 and $1,699. But instead of selling the Portégé Z20t simply as a bundle, Toshiba also will sell just the tablet as the Portégé WT20 ($899). By itself, the WT20 is equipped with a 1,920 by 1080 IPS LCD screen, 4GB of RAM and 128GB of SSD user memory, dual front and rear cameras, and runs on an Intel Core M-5Y71 1.2GHz dual core processor. Immediately after CES, Toshiba will start selling 8- and 10-inch Encore 2 Write tablets with TruPen ($349 and $399, respectively), the company's f rst pen-enabled full Windows tablets. Both versions include 64GB of user memory and an aluminum pen co-designed with Wacom, which clips to the bottom of the tablet. Toshiba said its pen will suffer less lag than other stylus systems, includes 2,000 levels of pressure sensitivity, can write at extreme angles other than perpendicular, and uses a right-click button to activate features that Toshiba described as "effortless." The Encore 2 Write tablets will come with a year's subscription to Microsoft Off ce 365 for new subscribers. Encore 2 Write

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