MID. A Definition that is Hard to Ignore.

Posted on 12 November 2008, Last updated on 12 November 2008 by

midimage When we talk about ‘Mobile Internet’ the first thing we often think about is mobile Web. We’ve heard about ‘Full Internet Experience’ and ‘Internet in your Pocket’ and seen diagram after diagram showing how a full-fat 800×480 browser is the key but the truth is that it is just a small element of what’s picking up steam in the mobile Internet device market.  In fact, the mobile Web is just one of the things enabled by mobile Internet. Its a strong focal point but it would be a complete mistake to think that that is the only thing a MID is going to be.

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I’ve just finished listening to a Texas Instruments webcast on MID business models and its stimulated me to share some notes I have been working on for a few weeks now. It centers around a definition of the MID that sweeps away thoughts of a web device or a device that competes with a smartphone or a netbook and builds the idea of a device segment that is created through the natural progression of existing mobile devices. Before I get into that though, make sure you make a note to listen to the webcast as it was extremely interesting. You’ll hear Mike Woodward of AT&T giving very positive feedback and talking about the $200 (subsidised) price point that they think are important. There’s a good discussion on the many possibilities for subsidising the device (through data contracts, content contracts, advertising and more.) You’ll hear TI talk about being able to support ‘native formats’ which is a great way of saying full quality TV, Internet and Video. Towards the end, there’s a great comment from Seshu Madhavapeddy, General Manager of  Mobile Internet Devices at TI, where he explains that not only could an MID fit in between a netbook and a smartphone, not only could a MID BE a smartphone or netbook but it could also replace a number of other consumer electronic devices that people already carry around.

I agree, the MID could almost be any consumer device but its not so much a new device as a place where existing devices are moving to. The desire to move towards Internet-connected consumer electronics is already here. Think of the iPhone, the Dash Expess navigator, the Archos 5 PMP, the Amazon Kindle e-book reader and the Sony Mylo. These are all mobile Internet devices, all exciting and all creating a lot of interest in the market. They all use the mobile Internet to connect applications and provide content or services like Voice, messaging, PIM, browsing, social networking, HD media, online gaming, navigation and online e-books through a varying number of operating systems and that’s how I think it will look in the future. Simply the existing consumer and business mobile device categories moving towards pocketable high-quality mobile Internet connectivity with interesting communication, entertainment, location and productivity apps.

Devices are moving into the MID segment for three reasons.

1 – OEMs. The pocketable devices in existing segments need to get better. This is natural. They are all moving in the direction of the Internet and in the direction of higher processing power and richer, more colourful and more ‘native format’ experiences.

2 – Content providers are keen to have new channels. Feeding content to people on chairs and sofas is too restrictive. They want you to have their video, music and advertising content everywhere. It’s a huge opportunity.

3 – Data carriers. There’s a desire to sell data contracts alongside voice contracts. This is an obvious point. Data carriers must be careful not to overload themselves otherwise they’ll end up having to put unexpected investment into the backbone but if they play it well, the transition from customers with one contract to customers with two or three contracts seems like a no-brainer.

All of these links in the chain see the benefit of the handheld e-commerce platform that is the MID.

So you see, its not the mobile web that really has anything to do with why MIDs will move forward. Its not really about the end customers driving the requirement, its about the OEMs, the content providers and the carriers that want to use it to lever sales of products, content and data.

No-one is saying the MID will wipe out the smartphone or sell 20 million in its first year but it’s already feeding in slowly, surely and almost unnoticed. Pocketable and handheld Internet-connected devices are here already and are going to gain incredible momentum as the technology finally reaches prime-time over the next 24 months. It’s hard to find a reason why it might fail.

8 Comments For This Post

  1. tal says:

    I apologize for keeping my usual line here (though maybe a dedicated reader is entitled to that), but MIDs are something you will not even mention in 2011. I am willing to put my money on that. MIDs are Smartphone prototypes without the phone. They have no consumer validity on their own in the long run. Smartphone OSs and platforms will be as strong eventually and the size will get to about 4″ (putting in the pocket and sitting with it is two different things if you ever had a 5″ to test this theory).
    The UMPC is another endangered device type. People will go for a 9-12″ device in the bag (for mobile computing) and a 4″ device in their pocket (for mobile connectivity.

  2. ecsk2 says:

    On the subject of Smartphones and their OS’ have you noticed this?

    http://www.vmware.com/technology/mobile/index.html

  3. Gammer says:

    Yes, I guess (and hope) you’re right. This is my dream:

    In the pocket: 4″ smartphone with 3G, hardware keyboard, WLAN, Bluetooth, GPS, Digital TV, SDHC, Webbrowser (FIE), Videoplayer, etc. Open source operating system, powerful application store. Maybe 4.8″. Weight up to 200g.

    In the bag: 9-12″ convertible, weight up to 1000g. Good sync software with the pocketable device.

    Both: 3 days standby and 4h continous work with both without external power source. Wake up from standby in 2 seconds.

    I hope at the end of 2009 this dream becomes true.

  4. turn.self.off says:

    2-3 contracts with a mobile operator? in their dreams…

  5. Chippy says:

    Lets see ;-)

  6. jkkmobile says:

    I pay only 2 euros for the 2nd and 3rd contract .. so yes, why not…

    my base 3g contract is 9.90 + 4 euros for 2 other sim cards.

  7. Joao Oliveira (BassoPT) says:

    Finland must have cheapest 3g contracts in the world. I have never heard such prices anywhere!!

    In Portugal you can’t even have a second card to your contract you have to make 2 contrats. And the cheapest one is 22,90 a month. The cheapest option is a pre-paid card for 10euros that lets you use for 10 days and thats it..

    Lucky bastards you!!

    Cheers!
    Joao.

  8. TempusFugit says:

    I guess I do not travel enough to see the need for more than one mobile device. I agree with Tal. I expect the phone capability to merge with the MID and leave us with one device that is capable and “pocketable”. The capability and thus the size depend on the user’s needs.

    I could imagine the clothing styles change to accommodate larger pockets. I already wore pants with large pockets to carry an Axim x51v. Cargo pants could make a come back in the US.

    I already manage a work desktop, a home desktop, my wife’s home desktop, my wife’s work laptop to some degree, and an entertainment server. Eventually, my twin daughters will need there own computing. These devices already require more management time than I want to spend. Add a personal device for each family member, and I may have to quite my day job.

    Instead I would like to get rid of the desktop machines. Each person carries and manages their own compute power.

    I would like to carry my computing device with me and just dock it in certain situations. While mobile, I use its small screen and touch interface. Plug it into the large family room screen to watch a movie. Plug it into work or the home office for an ergonomic workspace (bigger screen and comfortable keyboard.

    That brings me to the mobile net. My family of four communicates over the net a great deal. I will need a cost effective way to support our usage including voice, MMS, media, and web. I am willing to pay for usage, but I do not want a contract for each type of usage. For example, we do not have cable TV or a land line in my home. They are redundant with the web and cell phone. If MID and cell phone merge, I will only need one type of network access. Thus, I want one contract.

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