How Many Devices Are Too Many?

Interviewing a fellow analyst is always rewarding. This morning, I had the pleasure of speaking with John Jacobs, director of notebook market research at DisplaySearch, which is part of the NPD Group. We talked about the outlook for an emerging category that has many names in the industry – e.g. mobile Internet devices or ultra-mobile devices – and comprises everything from netbooks to tablets to e-book devices to gaming platforms.

These devices come in a range of sizes and form factors, but they share a number of important characteristics, including growing feature sets, processing power and reliance on wireless networks to deliver content. I’ll be looking at the confluence of devices and networks in my next report.

The key issue we discussed is oldie but goodie that’s resurfaced again in the past year: how many devices are consumers willing to carry with them? As smartphones evolve into veritable Swiss Army knives, do they obviate the need for netbooks? With a fully functional Kindle app available for the iPhone, do iPhone owners need to purchase a separate e-book device?

These questions ebb and flow with the evolution of the device cycle. Mr. Jacobs’ research suggests that consumers want fewer, more capable devices rather than multiple single-function gadgets, but the challenge with multifunction devices is always one of performing every function well (or at least well enough).

Interestingly, the reaction of consumers varies considerably by market. In developed markets like those in North America, Western Europe, Japan and South Korea, DisplaySearch has found that consumers buy netbooks as a secondary device (to an existing laptop or desktop PC) for specific usage situations (for example, Mr. Jacobs noted that in Western Europe, buyers use netbooks as substitutes for portable DVD players). In emerging markets, by contrast, netbooks sell at a far more accessible price point than more capable laptops, so buyers are willing to sacrifice features and performance just for the ability to purchase a portable computer.

Look for the complete interview transcript in the coming weeks.