We won't really know until Motorola's new tablet is launched in its finished form, but first demos of the Android 3.0-based Xoom suggest it will win the hearts of many of this year’s 30+ million tablet buyers. As we reported in our free-to-download 2011 Predictions Report, global revenues from tablet sales will exceed netbooks this year. Motorola’s stand at CES is crammed to overload this morning with gadget lovers desperate to get a first sighting of Google’s new “Honeycomb” OS in action. Those who made it were not disappointed. I recorded a video of the device in action. Enjoy! David Mercer Client Reading: Global Tablet Sales Forecast by Country

Two thirds of people who are thinking of buying an iPad in the next 12 months are expecting to pay less than the current lowest retail price, according to the latest research from our Tablet and Touchscreen Strategies service. 66% say they will pay less than $500 or €500, and half of those say they want to pay less than $300 or €300. We surveyed nearly 5000 consumers across the US and 4 major European markets. These findings won't concern Apple too much as there is enough momentum from early adopters to support growing iPad sales for the next few months. But they should serve as a clear warning that today's price points are unsustainable in the longer term. Already we are seeing a proliferation of (mostly Android-based) tablets arriving on retailers' shelves, often at iPad-undercutting prices. Staples is offering a 10" Viewsonic, Android 2.2 device at $400. I am awaiting delivery of a £150 7" Android 2.2 tablet from UK electronics specialist retailer Maplin. Clearly these devices will not match Apple in every respect; many observers doubt whether the latest versions of Google's OS are up to the job. But then the question is what "job" tablets are expected to carry out. iPad behaviour so far has been truly multifunctional, with a mix of games, browsing, video, communications, and the huge variety of apps which are impossible to categorise. I overheard one potential tablet buyer in Staples inquiring (of the Viewsonic device) whether it was good for reading books, and specifically whether it could do "things like Kindle". Unfortunately she happened to address the question'to a sales assistant who claimed to be "still training" on these devices and so couldn't commit to an answer. But the fact that customers are inquiring about specific capabilities suggests that all-round superiority may not necessarily be a requirement for tablet market entrants hoping to eat into Apple's dominant market position. That's not to say that device implementations shouldn't pass the bare minimum of usability requirements. There are still too many early Android devices floating around which really are not fit for purpose, even if they are practically being given away. Consumers want to pay $300 or $400 but they expect something that does at least a few things reasonably well. The sooner Android matures and its partners introduce devices to undercut the iPad, the better for the tablet market as a whole. Client Reading: Apple's iPad: Users, Buying Intentions and Price Expectations

I was with Intel executives by chance today, shortly after the first rumours, based on a New York Times story, that Intel, together with Google, Logitech and Sony, are working on a TV set-top box and service. Intel was demonstrating the capabilities of its Atom platform across a range of CE devices. In particular it was showing how its CE4100 processor combined with the MeeGo middleware joint initiative with Nokia could enable more flexible and more advanced IPTV services in the future. Amino, which has sold more than 4 million IPTV set-top boxes worldwide, was on hand to claim that the Intel platform has allowed it to develop new devices much more quickly than traditional processor platforms from ST, TI and Broadcom. And Telecom Italia is set to become the first major telco customer of an Intel-based IPTV platform when it rolls out new boxes in the next few weeks. Intel claims to be in talks with many other telcos, including tier ones, about deploying its solution. Intel made it clear today that its new platform could support Android, as well as many other OSs, while refusing to confirm the rumours of a partnership with Google. Our view is that it would be very surprising if Google did not enter the TV market before very long. It is certainly possible that Intel and Sony could be key partners, although unlikely if these prove to be exclusive deals for any player. Intel for one has made it clear it will be friends with anyone, whether in service provider or retail models. Intel’s roadmap calls for participation at all levels of the TV market, including entry level devices, but initially its strategy is to drive added value at premium price points. It seems that Intel is finally getting grips with the consumer electronics market after many failed attempts over the years. David Mercer Client Reading: Connected CE Devices: Global Market Forecast and Outlook

Or at least, boxes that are provided, ie "managed" by traditional TV companies like cable, satellite and IPTV service providers. The rumours are rife that Google is planning an Android for the TV space, and should be no surprise since Vincent Dureau joined the company a couple of years ago, having been CTO at OpenTV, the interactive TV market leader. He isn't there to improve search, that's for sure... What commentators such as Techcrunch are missing is the critical distinction between a TV service delivered, managed and controlled by a set-top box as part of a vertical platform, and TV that is available through open systems. I'm sure Google can come up with plenty of cool interactive TV apps, but that is neither here nor there if the vertical service provider doesn't see them as a profit generator for themselves, not Google. Google's models, for the moment, depend on open technology frameworks, not getting into bed with vertical service providers. So the company should focus its TV efforts on pairing up with emerging web TV players like Akamai and Move Networks, which are forging a path towards Round the Back delivery of HDTV over the internet. It should also work with manufacturers of "Digital media devices" as its route the end user, ie TV plug-ins that get the web video straight to the big screen where people want to see it. What web TV lacks right now is a sound business model, and that may be where Google's advertising savvy comes in rather handy. Client Reading: Digital Disruption: Imminent and Long Term Threats to the Audiovisual Industry Online HD: Disney's ABC Throws Down Gauntlet To Competitors, and Access Providers