iPad Opens the Scene to the World of Tablets, Says Frost & Sullivan

LONDON, June 16, 2010 - The launch of the iPad paves the way for a new set of devices: tablets,
which rise between the mobile experience of smartphones and the computing
experience of laptops. These devices, being connected to wireless networks
and equipped with all the services and applications of smartphones, can not
only offer a better entertainment experience, but also drive new ideas in
other industries including publishing and tourism.

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"The iPad is the tablet that makes the most noise in the market, but it
does not come alone. Many other vendors have embraced the idea of a tablet,"
says Saverio Romeo, Senior Industry Analyst for Frost & Sullivan ICT
practice. "At the moment, HP, Asus, Dell and Archos seem to be the most
aggressive of Apple's competitors, at least from a European market
perspective."

Regarding the business model for tablets, Apple has again established a
route modeling the use of the iPad around the Apple App Store, from where
applications can be downloaded to the device. The model for the iPhone has
been simply extended to the tablet. The application revenue model also
remains the same: the 70/30 revenue sharing model used for smartphones is
still in place for iPad applications, and Apple's competitors are following a
similar route.

"Tablets can change the experience of mobile gaming, moving it towards
something approaching the console experience," explains Saverio Romeo.
"Similarly, the mobile video and TV experience can be more engaging with
tablets due to increased screen size."

Tablets can also drive new ideas in other industries. For example, the
launch of the iPad came with a storm of iPad applications by the main
European newspapers: R+ is the iPad application for the Italian newspaper La
Repubblica; The Guardian iPad App "Eyewitness" hit 90,000 downloads in just a
few hours after the launch; the French Le Figaro has its own app for the
iPad. With optimistic comments from editors that a new era of journalism has
started, the tablet seems to be the device that enables mobile interactive
newspaper distribution without limitations related to screen size. However,
the debate on the pricing model remains: free and ad-based versus fee-based.

European tourism government agencies and related organizations are also
planning to use tablets in places like museums, archaeological sites and at
cultural events. The power of 3D multimedia and the screen sizes of tablets
can better capture the imagination of a tourist while moving around ancient
cities and art galleries. Other ideas are coming from the hotel industry,
with the iPad enabling staff to provide guest services such as satellite
maps, street views and video clips of local attractions.

"The iPad has given relevance to the emerging segment of tablets in the
mobile device market. Apple's tablet has found the enthusiasm of two million
users in just two months and it has enabled opportunities in various
industries," concludes Saverio Romeo. "However, tablet pricing means that
these devices are currently aimed at specific consumer segments: early
adopters. This enthusiasm is not yet at the mass market level."

If you would like to learn more about this topic or/and Mobile
Communications sector in Europe, please contact Joanna Lewandowska, Corporate
Communications, at Joanna.lewandowska@frost.com. Please, include your full
name, company name, job title and contact details.

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    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

www.frost.com

Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com