A sea of tablets at CES, but no iPad-killer

Motorola Mobility CEO Sanjay Jha shows the company's new Xoom tablet at the Verizon keynote address on the opening day of the Consumer Electronics Show (CES) in Las Vegas January 6, 2011.

Credit: Reuters/Rick Wilking

By Gabriel Madway

LAS VEGAS | Fri Jan 7, 2011 4:53pm EST

LAS VEGAS (Reuters) - It was easier to find a tablet this week in Las Vegas than a taxi.

Rivals determined to prevent Apple Inc from dominating the tablet market the way it did with digital music players unleashed a tidal wave of touchscreen devices at the Consumer Electronics Show.

This year may well produce a viable competitor to Apple's iPad. But CES only served to underscore the challenge they face.

Of the slew of tablets on view at CES, devices from Motorola and Research in Motion were standouts. But none rose to iPad-killer status, analysts said. Some, lazier vendors seemed to use the show as a whiteboard to sketch out half-baked ideas.

Rich Beyer, chief executive of Freescale Semiconductor, which makes chips for tablets, said in an interview ahead of CES that Apple's rivals are still testing the market.

"I think a lot of people are hoping that this market is not going to be like Apple and the MP3 market."

Rivals are already playing catch-up, after Apple moved assertively to define the tablet market, sacrificing its precious margin profile to price the iPad at $500.

There is undoubtedly an opportunity for other tablets, particularly with different screen sizes and in the corporate market, where Apple has not traditionally been very successful. And the sheer ubiquity of tablets based on Google's Android software makes that the platform that Apple cannot ignore.

The tablet segment is expected to more than triple to 50 million units in 2011, with Apple seen as by far the dominant vendor.

Despite Apple's big head start, no one expects its competitors to stay away. Sony Corp said it hopes to become the world's second-largest vendor of tablet devices by 2012, but failed to show anything.

Paul-Henri Ferrand, head of consumer marketing for Dell, said: "Apple can't expect to have the tablet market to itself."

CORPORATE DEMAND

A host of manufacturers are producing tablets based on Android, which is free to license. But Android tablets will face the added challenge of not only competing against the iPad, but also one another.

"Android will be a key player in the tablet market but it will be hard for any single vendor to challenge Apple," said Gartner analyst Carolina Milanesi.

Lenovo, LG Electronics and Asustek Computer were just a few of the companies showing off Android tablets at CES.