More impressive numbers being released from the Neilsen survey of tablet computer owners. The biggest data is from their tv viewing habits:

Tablet owners said 30 percent of their time spent with their device was while watching TV compared to 21 percent lying in bed.

Intel to get into making tablet based chips:

Regarding the emerging tablet market, Otellini said that Intel will have “quite a bit of tablet demonstrations” at Computex running MeeGo, Windows, and Android operating systems. “We’re heads down on a number of designs on tablets on all three of those operating systems,” he added. Regarding Android, Intel’s fifth CEO said, “We’ve received Android code – the Honeycomb version of Android source code – from Google, and we’re actively doing the port on that, and expect to be able to ramp those machines over the course of this year for a number of customers.”

Via Engadget

So on one hand, we have the internet where websites live and breath by traffic provided by the Google Algo.

Then we have the growth of App Space – where apps live and breath by the by the Apple AppStore algo.

More and more eyeballs are spending time in AppSpace. AppSpace is growing. I predict AppSpace will outgrow the internet – eventually.

So, it is time to open “The Second Front” – The AppSpace algo. We ? now have word, that Apple has updated the AppSpace algo last week.

“We’ve been noticing changes in the Top Free rankings for at least three days now,” said Peter Farago, vice president of marketing at Flurry, which serves 80,000 applications with its analytics product. “From our point of view, Apple is absolutely considering more than just downloads, which we believe is the right direction to measure true popularity of an app.” Other pay-per-install networks tell us they’ve been detecting these changes too.

This is so Deja Vu Florida Update as Apple is going after those that game the system:

This has allowed an entire cottage industry to flourish. Networks like Flurry, Tapjoy and W3i allow developers to pay for downloads, which bump their apps into the top of the charts where they can get even more downloads from having the extra visibility. If they’re good, they stick at the top of the charts. If they’re bad, they fall quickly.

New survey out of tablet computer owners (iPads). Completed by Google’s AdMob advertising group:

•69% said they use their tablet more frequently on weekdays relative to weekends

•Tablets are used more during the night according to 62% of respondents

• 28% of respondents said that the tablet is their primary computer

Tablet prices are tanking in the wake of the IPAD2 release.

$129 at TigerDirect for a 7.1inch android 2.2 tablet.

Or $349 for a 10.1 incher.

I think we will see the sub $100 tablet within 2 years. That means they will become ubiquitous around our houses. They may even start to sell them in 2-3 packs for families.

Some think that the tablets will play out like the phones with a iPad vs Android battle. While that is certain to happen, the iPad has several things going for it, that the Android tablets don’t have:

• iPhone success was chained to the carrier distribution model
• iPads can be sold anywhere without being lashed to a wireless plan
• iPads have a strong 12-36month lead on the Androids
• Apple is showing that they are willing to cut pricess to maintain market share

Once we do hit the sub $100 barrier, the real problem becomes keeping our data in sync. HP has show a WebOS (palm) that transfer data quickly between devices. That type of sync system is going to be needed for all tablets. Apple is quickly develping AirPlay as a means of sharing data.

Today, Gartner put out a very short sighted post about iOS.

Despite mounting competition from other operating systems (OSs), Apple’s iOS will continue to own the majority of the worldwide media tablet through 2015, according to Gartner, Inc. Due to the success of Apple’s iPad, iOS will account for 69 percent of media tablet OSs in 2011, and represent 47 percent of the media tablet market in 2015.

What happens as Pad prices fallout? Today, Tiger direct is selling a 10.1 inch Android pad for $299 and a 7.1inch pad for $129. That’s right – we are getting close to the sub-one hundred dollar range. If they can sell and make a profit off it right now at those prices, imagine what the price is going to be when they are selling 30-100million of those over the next few years! Given the current state of demand, I expect leading edge pad prices to drop below $100 within 24 months.

I expect the same process to happen with iOS vs Android that happened with Linux vs Windows NetBooks.  Just as Microsoft was forced to essentially give away WinXP to netbook makers in order to compete with linux based netbooks – a similar situation is going to play out on Pads. As Pad hardware becomes cheaper and cheaper, then the total cost of ownership is going to shift from the hardward to the software. Clearly, the open source Android is going to be able to trump the proprietary and relatively expensive to make iOS on a cost-per-cost basis. Apple will have to get aggressive at price cutting.