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Smashchu2 said:

I only mentioned the profits because it was not mentioned, and it wasn't mentioned in the article (so you "forgetting," it isn't a big deal). I expected income to be high because sales were high and Gross margin remained about the same. So long as operating expenses were about the same, they'd be fine.

I do find this "tablet," market funny. Ipad is the only product I've seen from it. I also don't think it feels a niche. First quarter sales were good, but we'll have to see the long tail sales.


The tablet market has been a niche that various companies have tried to break into the mainstream since the early 90s. Apple tried back then with the Newton, but the technology wasn't good enough or cheap enough at the time. No wireless networking, no colour LCD, and an interface that relied on a stylus and awkward handwriting recognition. Apple ditched the Newton and lot of those engineers formed Palm and forged a decent success in the now-dead PDA market.

From the late nineties onward, Microsoft has worked with various hardware partners to sell tablets that are basically laptops with a resistive touchscreen. Success has been pretty marginal because the stylus is still cumbersome, Windows is optimised for mouse input rather than touch, and consumers don't like the high prices, bulk, and low battery life that comes with laptop-class hardware in this form factor.

The key is smartphone-class hardware for lightness and battery life, paired with software designed from the ground up to interact with human fingers. The technology is finally good enough to address this market and bring tablets beyond the realm of niche uses and geek enthusiasts.



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