The key to Wii U being an app center is merely to serve as supplemental to its core use, because as a tablet competing with other tablets, the Wii U clearly lacks functionality (single-touch resistive touch-screen, smaller and lower resolution than other tablets). Similar to how the Wii had supplemental functions that were inferior to other devices that provided those functions (e.g. Web-browsing. Netflix was pretty on par aside from the lack of HD though), but it is clear that people still used their Wiis in fairly significant numbers for other functions, which is what Nintendo is driving at.

Nobody's going to buy a Wii U to replace their tablet computer, but some people may choose to use the Wii U in lieu of their tablet computer at times around the home.

Okay, I think people need to chill out on swilling the haterade here.

This thread is a viable one as rather a lot of people use tablets predominantly in their homes. That's an established fact (Source: http://www.idownloadblog.com/2011/11/16/ipad-never-leaves-home/). Furthermore, the majority of people use iPads for functions that Nintendo could hope to easily replicate using the Wii U, as a home-only piece of hardware, with the integration of web/social network browsing and Youtube and game applications (Source: http://www.businessinsider.com/how-people-really-use-the-ipad-our-exclusive-survey-results-2011-5#the-ipad-is-a-web-surfing-machine-first-and-foremost-6).

Don't hate on the OP simply because it messes with your prejudices about what Nintendo can and can't accomplish.

Now Nintendo could aim to take on Apple at their own game, so to speak, but they would have to approach it in a far better way than other tablet manufacturers have. Most iPad owners have never considered purchasing an Android/anythingotherthanApple tablet (Source: http://www.businessinsider.com/how-people-really-use-the-ipad-our-exclusive-survey-results-2011-5#almost-nobody-thought-about-android-23). With a substantial number of iPad users using their machines for quite a bit of gaming, and with Nintendo being the publisher of some of the world's most popular game franchises, it's quite possible that, if implemented correctly, the Wii U could attract quite a bit of interest from the wannabe iPad home user who is looking for an all-encompassing games/apps/e-reader machine.

There exists a possibility that Nintendo could work this angle. A strong possibility if worked and marketed correctly.

Nintendo did not lose anything to mobile giants....

@op: that`s a good question ryan.
Although i`m with some on the issue that no smartphone/tablet/pc/whatever has taken market away from Nintendo - be that Wii or DS/3DS - i think that`s a good point.
People, in my opinion, keep putting side by side a growing mobile market where gaming is taking off to consoles (Wii and 3DS) that not at this time in a position to even compete: Wii is on it`s last breath; there are no games for it that might interest the more casual crowd. The last hit game was probably WSR. All Wii has now is Just Dance 3 and look how that thing sells.
3DS just doesn`t have casual games to compete with the mobile gaming market.
Is that a fair fight? No it`s not. But the media and analysts don`t care about that.

Still your post raises a question, a question of perception: When people think apps, Angry Birds, e-readers and stuff like that they think smartphones and tablets. Even if Wii U did all that, would it be considered an alternative to them?

Because to me, that`s what Sony, MS and Nintendo will face if they follow that route.
Home consoles aren`t portable, not even the Wii U will be fully portable. So, in essence what can they do to be an alternative to casual gamers?
Sometimes i think all consoles could lack all that and if they had casual hit games they would still sell a lot.

Nobody expects to buy a console and get the same experience they get from smartphones/tablets and vice versa.
People buy home consoles because they can`t get that experience anywhere else and people buy mobile devices because of apps, angry birds? Or that`s one of the reasons and not the main one?

I don't think the Wii u tablet can store let alone stream p0rn.. So NO! *goes to the toilet with his IPad* be back in 5..

With their own platforms Nintendo make a lot of money and are seen - from time to time - as a force in that area and that is good for them.
You can`t please everyone (shareholders) but i guess they will be happy when things start turning around for Nintendo once more.
There`s a lot Nintendo can do with Wii U to be seen as relevant on the console market. An appstore is a good start. But more than everything, people need to know what Nintendo is offering and why it would be great for us: communication! :)

The market itself is growing therefore supporting both types consumers. Just because mote people are buying games on smart-phones doesn’t mean they are coming from consoles or handheld buyers. Not everybody that plays games now played games before

What Nintendo is trying to do is broaden the types of games and entertainment that can be played on Wii U to attract people who only like to play on their pads mobiles.

Selling a dedicated gaming system to someone who plays games on a smart-phone or tablet will be far easier than selling a dedicated gaming system to someone who doesn't play games at all ...

You can envision the market as a series of islands that are separated by water, the islands are full of people with similar gaming habits. What Nintendo (or any console manufacturer) needs to do is produce bridge games that span the gap between playing Angry Birds and playing games on their system.

i do not get it!

what is the question?

I do think it will effect the tablet market for those who wish to purchase tablets for gaming purposes - that said, I am not sure how large that segment of the population is - I would think those buying iPods and iPads for gaming (or an imitandroid brands) are a very small segment of the market; rather the vast majority purchase games for the devices as a result of owning those devices. IE. I have an iphone, so I buy games for it - I got my phone for phoning and surfing online at any place.