Abstract

Limited Digital TV Content Remaining a Challenge

The notebook PCs with built-in TV tuners that PC vendors are now selling are capable of meeting consumers' mobile TV viewing needs. While the necessary hardware and software is already in place, the range of digital TV program content that is available will influence consumers' willingness to use this equipment for mobile TV viewing. Currently, the mobile TV ecosystem as a whole is showing no signs of rapid growth; the digital TV content that is available for viewing on notebook PCs is simply not attractive enough. Content providers, equipment makers, and broadcasters have been discouraged from making the necessary investments due to consumers' lack of enthusiasm for mobile TV. This has created a vicious circle, exacerbated by the absence of new growth drivers and the low visibility of mobile TV products.

Product Differentiation Needed

Although the widespread adoption of system-on-chip IC solutions for built-in TV tuners has helped to overcome the problems of excessive weight and size, high power consumption is still a serious issue. Competition from express card and TV tuner stick mobile TV solutions has diluted market demand. However, if the heat dissipation and high power consumption issues can be overcome, built-in TV tuners will be able to establish a clear competitive advantage over the other mobile TV solutions.

Specifications Becoming More Diverse

Examination of notebook PC panel size and GPU specifications and pricing shows that, while notebook PCs with built-in TV tuners still tend to be high-end models, there is a growing polarization in terms of display size. This is particularly evident in the range of tuner-equipped notebook PC introduced by Japanese vendors. Tuner-equipped notebook PCs with a large display screen will lack the mobility needed for mobile TV viewing, and will thus be faced with competition from desktop PCs and traditional TV sets. On the other hand, if the notebook PC screen is too small, it will be difficult to differentiate the product from a MID (Mobile Internet Device) or UMPC (Ultra Mobile PC). Vendors of notebook PCs equipped with built-in TV tuners will need to position their products carefully so as to achieve effective market segmentation and concentrate on the right target market, pointing up the advantages that their products have over those of their competitors.

Market Growth to Hinge on Consumer Usage Habits

Watching TV on a notebook PC with built-in TV tuner does not provide the same level of comfort or convenience as a traditional TV set, where the viewer watches in their living room and can turn the TV set on or off in the space of a few seconds. In addition, such notebook PCs do not provide the same level of portability as a Mobile Internet Device. It therefore remains to be seen how high the level of demand for tuner-equipped notebook PCs will be in the global market. Currently, the European and Japanese markets account for the largest share of tuner-equipped notebook PC shipments. Both these regions have unified digital TV standards, as well as other factors contributing to high take-up of mobile TV, such as long commutes, and the characteristics of the living environment. It can be anticipated that the global market for TV tuner-enabled notebook PCs will vary with cultural and environmental differences between countries and regions.

Appendix

Research Scope

This report analyzes the notebook PCs rolled out by HP, Asus, Lenovo, Sony, Toshiba, and FSC. Specifications and prices of the notebook PCs are based on the information announced on the individual companies' websites during September 5 and 7, 2007.

List of Companies