Monday, May 30, 2011

ABI Studies: Most Laptop Users Still Prefer USB Modems over Other Connection Methods Even Today


This Monday, a report of survey and calculations of the research firm ABI stated that that the Mobile data users are currently more inclined towards using the USB modems for keeping their mobile devices connected to the internet. However, it has predicted that in near future, like five years or so, majority of the users will be more into using the built-in cellular radios or portable Wi-Fi hotspots.
A netbook in the southern Thomas Road AT&T con...                               Image via Wikipedia
It quoted that even though the market of connected tablets, along with the availability of devices with built-in high-speed cellular modules is ever increasing, still in comparison the worldwide shipments of USB modems has yet remained way more than the embedded 3G and 4G modules. It was mentioned that the ratio is as steep as three to one, and ABI predicted that until 2016, this ratio will be almost neutralized.
Jeff Orr, an ABI analyst, stated that almost all major mobile operators, like AT&T, Verizon Wireless and Clearwire, are allowing customers the option to buy any laptop or netbook, with a pre-installed integrated cellular module. These machines will allow the user to connect with internet almost anywhere, and they will not even have to use a USB port or have an extra small hardware hanging at the side of the system. However, on the down side, he mentioned, these pre-installed built-in modems restrict the users to only stick with one carrier or network exclusively forever. This can be a little unacceptable for many consumers and enterprises. Orr said that to counter this, the users buy external USB modems which are easily discard able according to the will of the user. Whenever the prices fluctuate between carriers, there is barely even early termination fee to change the carrier data contract. In fact, he claimed to have said "That device becomes almost disposable.”
So the biggest setback with built-in modems is that the technology keeps changing faster than many can perceive, and user does not want to change their computers that often. So ABI calculates that the market for embedded modems is still quite small, as just 5% of the laptops shipments worldwide have built-in cellular modems in 2010. Orr said that among the netbooks, on the other hand, this percentage is 17%, though it is considerable that netbooks are way less common that than laptops at the moment. Same is the case with the 40% of tablets, which come with pre-installed built-in modems, as the tablet market in general is very small.
The key prediction of the company, Orr said, is that these embedded modems will begin to attain popularity along with the growing sales of tablet. Whereas, it further forecasted that the portable Wi-Fi hotspots, which are currently using cellular data networks, will perhaps overpower both kinds of, embedded and USB, modems by 2016, Orr said.

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