Demystifying the MID

He also classified the MID market as a supplier-side, technology industry push rather than an obvious end-user pull. Or as Robert Nalesnik, senior director of marketing for mobile communications at Broadcom, put it: The answer is MID, but what was the question? Silicon vendors such as Intel, Qualcomm, Texas Instruments and even Broadcom got together with Linux-oriented software providers to invent this new category.

“The real question is, is there a fifth screen out there, and does someone have the budget to carry it?” Nalesnik said.

MID champion Intel's motto is to put the power of the PC in the palm of the hand. Intel's x86-based processor Atom is powering most MIDs in the global market, but it is up against increasing competition from chip designer ARM and its licensees, which include Ericsson, Qualcomm and Texas Instruments. Today, the company is powering about 15 MID models, but the only one available in the U.S. is Clarion's MiND. Pankaj Kedia, director of ecosystem programs for Intel's ultra mobility group, defines the MID category very broadly as Intel seeks to embed its chipsets in as many products as possible.

“If you take a pure size or technology view, then you would say the size of a MID is between a laptop and phone, but most users don't think of it that way,” Kedia said. “Most users think about the right device for the right usage. … MID is the mobile equivalent of an iPod or a [PlayStation Portable]. The primary reason is Internet when you buy a MID.”

Texas Instruments is focused on enabling Internet browsing experiences for productivity and entertainment MIDs. According to Seshu Madhavapeddy, general manager for TI's MID business unit, a MID is defined more by Java capabilities and a desktop-like Internet experience than by the applications, which themselves are Web-based. Features such as Linux-based spreadsheet and presentation programs, navigation, music and even cell-phone capabilities define the space, he said.

“You are looking for a more portable way of being able to use the Internet, but use it with the same experience as you have on your desktop,” Madhavapeddy said. “There is a huge gap between the browsing experience on the mobile Internet compared to your desktop PC. In the form factor of a mobile device, it packs such a huge punch — you get the same experience you do on the desktop.”

Considering the use cases, the target MID audience most likely will be young, tech-savvy consumers who lack high-end feature phones but still want to browse the Internet on the go. MIDs are not being marketed as replacement devices, so the demographic will be either gadget enthusiasts or mobile users who don't want to lug a full-sized laptop or even a netbook.

“The demographic that MIDs will hit the strongest are the college-age tech users that want to be social networking or in communication all the time,” Lao said. “High-schoolers will be strong users, but they don't really have a job to afford it. They will be a consumer group, but not the buyers.”

It's likely that MIDs will be popular among what Lao calls Gen Z, who have a strong need for communications and access to e-mail, presentations or spreadsheets for viewing while mobile. As for social networking, consumers could take their experience on the go with a dedicated device. It fits the socially savvy target demographic, as long as the business model does well.

“If you look at social networking, for instance, if you use YouTube or Facebook, we truly believe and see in our consumer research that you want to have the same interface when you use your smaller device,” said Eva Sparr, head of mobile broadband modules marketing for Ericsson.