The 'intermediate device' battlefield shapes up

Engadget is reporting that Philips has released its own reader device

The Philips release rounds out a newly formed submarket: that for the 'intermediate' device. As far as I know, noone's come out and named this market segment but there's a variety of poducts and form factors already competing in this market.


Let's start off with the market characteristics. First of all intermediate devices are characterised by their for factor. They're bigger than PDA's but smaller than tablets. As things stand, they lack an input device other than a stylus although some have on-screen keyboards. Most (not all) have some for of network capability. All the devices are geared towards information consumption and a small amount of information management.

The striking thing about this segment is that it's being approached from three directions. On the one hand you have Microsoft pushing its Ultra Mobile PC platform trying to extend the desktop to a new part of the market. On the other hand you have Philips with the Irex Iliad and Sony with the Reader coming into the market with a consumer electronics approach, basically making a text display device. And then you have Nokia with the 770 internet tablet with a web browsing tablet.

It's strange to see that you have three different (groups of ) companies approaching an (as yet) unidentified market segment. My guess is that all three feel that users need to have a device more capable than a phone or PDA to view text/media. My major problem with the idea is that it's one more gadget to lug along. On the one hand the non-microsoft devices have a head start because they have far better power characteristics (the Sony and Philips devices can work for a week between charges) and are 'instant-on'. Microsoft on the other hand has the advantage of being able to run all your standard desktop software, like skype. On the other hand, the devices are expensive, boot at the same rate as XP and don't have overly extended battery lives.

My take is that the Philips product has the best shot at creating some new space - with the device's network connectivity giving it an advantage over the Sony device.