Abstract

UMPC a Weak Player in Gaming Market

While the UMPC has strong computing capabilities, it cannot meet the needs of all market applications. For example, in the gaming market, the UMPC will encounter problems because of its product specifications.

First, in terms of audio-visual performance, the UMPC only has an 800x480 resolution screen. In addition, the UMPC does not have a graphics chip dedicated to display, which means that for gamers, the UMPC can not provide satisfactory audio-visual effects. In terms of operation and user interface, the UMPC lags behind Sony's PSP and other portable game consoles. For this reason, as a game platform, the UMPC is inferior to other products.

Heat-Dissipation Problem Might Affect UMPC

While the UMPC's design based on the PC x86 architecture provides advantages compared with other handheld products, it also inherits some of the PC's disadvantages such as heat dissipation problems.

Because the UMPC is based on the x86 architecture, it is affected by CPU heat dissipation, the need to provide vents, and noise problems. These are all issues that need to be solved.

Communications Capability and Battery Capacity Key

For Intel and Microsoft, the UMPC can help the companies improve their product capabilities and expand their markets. In terms of product capability, there are two areas which are critical for the UMPC to become a successful commercial product. The first is communications capability and the second is battery life.

Regarding usage model, the largest market segment for the UMPC and other handheld products should be rapid acquisition of information and the creation of interactive links. Current products only use WLAN and are still unable to satisfy consumer demand for "anywhere online" demand. In the future, if products can support 802.11n, 3G, WIMAX (Worldwide Interoperability for Microwave Access) and other wireless network standards, they can satisfy consumers' need for instant information and instant interactivity, and a new product segment can be created.

Batteries currently provide only 2-3 hours of use between charges, still insufficient to meet consumers' demand for full-day use. For this reason, improvement of battery life will help boost market acceptance of the UMPC.

UMPC Has Made a Splash, but Future Success Up in the Air

Based on current product capability and the price, it is still too early to say whether the UMPC will be a success. This year, Intel and Microsoft aim to make the UMPC the key topic driving market discussion. The product already has caught some attention in the notebook PC market. After the tablet PC failed to meet expectations, there is something new to talk about in the small-form-factor PC space.

While the marketing effort by Intel and Microsoft has achieved some success in gaining consumers' attention, the product specifications await improvement in several areas, and consumers will need to be educated on new usage models. For this reason, the product is still some distance away from real application, and more effort needs to be made in creating a more mature environment for the product.

Appendix

Glossary of Terms

List of Companies