At Consumer Electronics Show, spotlight will shine on tablets

Tech companies gambled big last year in Las Vegas that 3-D would be a hit.

That bet hasn't paid off.
So this week at the annual Consumer Electronics Show in Vegas, they're rolling the dice on another technology: tablet computers.
But if 3-D televisions represented a daring wager on an unproven standard with limited consumer awareness, the tablet push might be coming a year too late for many gadget makers.
When Apple Inc. released the iPad in March, it set the standard for touch-screen computers.

Microsoft Corp. and others had labored for years to make tablets a hit, but it was Apple's device that captured the popular fancy.
With Apple widely believed to have sold more than 10 million iPads through the holiday quarter, other companies are now simply battling for second place.
"The race is on to cut into Apple's huge lead with the iPad among all the major manufacturers," said Kurt Scherf, principal analyst with Dallas-based market research firm Parks Associates.
"It's a huge obstacle to overcome."
Some analysts have estimated there will be as many as 50 companies showing off various tablet products and prototypes at CES this week.
They'll be sporting a variety of screen sizes, processors and operating systems, although Google Inc .'s Android software will be found on many of the devices.
Microsoft is also hoping to finally get some traction with a tablet version of its Windows 7 OS, and Hewlett-Packard Co. probably will unveil a tablet running the webOS software it got when it bought Palm last year.
BlackBerry maker Research in Motion Ltd. is also developing software and hardware for its own tablet, the PlayBook.
One company that's a bit further ahead than most is Samsung Electronics Co., whose U.S. mobile division is headquartered inRichardson.
Samsung's Galaxy Tab, which uses Android, is one of the few machines so far to present a credible threat to the iPad.
Samsung said last month it has sold more than 1 million Galaxy Tabs.
For many of these companies, it's fairly easy to slap together the hardware, bundle in an app store, and push the product out onto shelves.
But that's not what made the iPad so successful.
"What is interesting about the iPad is the unique experience it provides," Richard Shim, senior analyst with research firm DisplaySearch, wrote on his blog.
"The popularity of the device is not just in the sleek design. In fact, the device is very simple, with only one port and few opportunities for accessories. The OS and the apps truly differentiate the iPad."
As dominant as Apple is, though, it's not unbeatable.
In June 2010, for example, the iPhone had a 27.9 percent share of the U.S. smart phone market, compared with a 15 percent share for all the various Android phones from different handset makers.
But in November, according to data released Monday by Nielsen Co., that gap had almost vanished, with the iPhone at 28.6 percent and Android at 25.8 percent.
3-D disappointment
While much of the hype this year at CES will revolve around tablets, 3-D will continue to be a big focus, if only because the TV industry has already invested so heavily in the technology.
But Scherf summed up 3-D's performance in the retail market so far in just two words: "Epic fail."
"I have seen various articles trying to peg the penetration of 3-D TV in U.S. households, and I think 2 to 3 percent is about where we're at," Scherf said.
"In a market where well over 50 million households have HD TVs, that 2 percent is pretty stingy."
When electronics retailer Best Buy Co. reported disappointing third-quarter sales last month, the company partly blamed a decline in television sales.
Speaking to analysts in a conference call, chief executive Brian Dunn acknowledged 3-D sales had fallen flat.
"I think there was confusion about 3-D early" on after it launched, he said. "It was a little short on content."
Executive vice president Michael Vitelli noted that tablet computers seemed to have lured some of the early adopters who were expected to buy 3-D sets.
Connecting
If consumers aren't interested in shelling out thousands of dollars for a new TV just a few years after making the same investment for 2-D high definition, they might be tempted by many of the networking and software upgrades that could tie together TVs, tablets and smart phones.
While it might not be as sexy as a new slab of hardware, the behind-the-scenes work that's going into wirelessly connecting all your devices could end up being the most significant trend in tech right now, Scherf said.
Companies such as Verizon Communications Inc. are working on systems that will let you seamlessly transfer what you're watching on TV to your tablet or to your phone.
"I want to access my content on any Internet-connected device – what we're starting to call 'cloud media services,' " Scherf said.
Many television makers are also increasingly building Internet connectivity directly into their TVs, enabling apps for YouTube andNetflix video streaming without the need for a separate box.
So now your TV is basically a giant tablet, and the first app stores for televisions could be on display at CES, as well.
At the same time, your house will be integrated into your network, allowing you to check live security camera feeds from your phone, or adjust your thermostat from your laptop.
Those services will partly be enabled by the next generation of 4G wireless data networks, which Sprint Nextel Corp., Verizon Wirelessand T-Mobile USA Inc. have already launched, and which Dallas-basedAT&T Inc. is set to kick off later this year.
Those incremental upgrades and capabilities won't grab headlines like, say, Verizon getting the iPhone (and don't expect that announcement at CES this week), but they could ultimately change our lives in much more dramatic fashion.
"It continues to be an evolutionary path," Scherf said. "How do we make device-to-device communication better and easier for people to use?"