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Motorola and Verizon team up for TV tablet

Motorola is developing a digital tablet device that will allow users to watch television on it, as the US mobile phone group attempts to chip away at a market established by Apple's popular iPad.  —  The device, which will have a 10-inch screen …

Financial Times

Context & Ripple Effects

Verizon had already been linked to a Google-backed iPad rival in May. Motorola’s television-focused tablet gives that broader challenge a hardware partner and a clearer use case, as Apple’s iPad had helped lift Apple to third place in portable PCs when tablets are included.

First-order effects

  • Motorola and Verizon pair a 10-inch tablet with television viewing, giving Verizon a dedicated device through which to compete for screen time beyond smartphones.
  • Apple’s iPad faces a challenger designed around carrier-delivered video rather than Apple’s existing tablet proposition.

Second-order effects

  • Verizon’s device strategy raises the value of Motorola’s ability to tailor hardware around carrier services, rather than competing only on the tablet’s standalone specifications.
  • Other mobile operators and handset makers face pressure to differentiate tablets through bundled services such as video, not merely by matching the iPad form factor.

Third-order effects

  • If carrier-device partnerships become the standard tablet entry route, control of subscriber relationships and service bundles may matter as much as the hardware maker’s brand.
  • The move points toward tablets becoming endpoints for mobile-service packages, tightening competition between device platforms and carrier distribution.

The trend: Tablets are becoming a new battleground where carriers use exclusive hardware and media services to counter Apple’s early platform lead.