This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Tablet Explosion Looking More Subdued

NEW YORK, (TheStreet) -- Tablets didn't make the top five gadget list for upcoming consumer purchases in 2011.

A Gartner survey highlighted the continued success of smartphones as the top selling device again this year, but tablets sat way down at the bottom of the list.

"Smartphones were followed by laptop computers and desktop computers in rankings of U.S. consumers' average intent to purchase in 2011. Mobile phones ranked fourth in average intent to purchase, followed by e-book readers in the fifth position, and tablet computers ranking sixth," according to Gartner, which released the survey Thursday.

This will come as a little shock to companies like Motorola (MMI), Research In Motion (RIMM), HTC, Samsung and Apple (AAPL), which are all preparing new tablets this year.

Conventional thinking held that tablets were a disruptive force in the computer industry, as the lightweight touchscreen-controlled devices threaten to displace notebooks. But while many find tablets to be wonderful media players, the devices lack more practical features like keyboards and more powerful processors to handle work tasks.

The Gartner survey suggests that tablets may continue to occupy an interesting -- yet small -- niche in the gadget market.

Another interesting tidbit from the Gartner survey shows that smartphone sales growth is slowing as a greater portion of the market already possesses them. Gartner expects smartphone sales to increase to 95 million, a 42% increase over last year's total. That is a drop in growth from the 57% smartphone sales clip in 2010, according to Gartner.

The next stage of smartphone growth will likely come from mid-range and lower-priced phones, made with fewer features and less power and likely sold in the prepaid market.

Telcos subsidize as much as $500 of the price of expensive smartphones so they can lure customers with $200 phones into lucrative two-year service contracts. Prepaid services don't offer to pick up part of a customer's phone cost since they pay on a month-by-month basis.

"Continued low retail pricing and widespread adoption of applications like Web browsing, e-mail, Twitter, Facebook, GPS and games will continue to stimulate consumer demand," Gartner's Hugues de la Vergne said in a press release.

He also predicted that phone companies may boost smartphone sales by offering cheaper data service plans that start at $10 to $15 a month as opposed to the $30 and above rates available today.

--Written by Scott Moritz in New York.



>To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.

To follow Scott on Twitter, go to http://twitter.com/TheStreet_Tech.

>To send a tip, email: tips@thestreet.com.

Stock quotes in this article: AAPL, GOOG, MMI, RIMM 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs