Apple's iPad Loosing 30% Market Share
Strategy Analytics released the report Friday, October 21, 2011. It was noted in the report that iPad’s market share in second quarter had reached 96 percent. Although, according to Apple, the most recent calendar quarter showed an increase of shipment to 11.12 million units, compared to 9.2 million in the previous quarter. Strategy Analytics reported that despite the increased units sold iPad’s market share was now at 67 percent giving Android 27 percent. The remaining 2.4 percent of market share belongs to Microsoft Windows and 1.2 percent to BlackBerry’s QNX. Contrasting 2010, Android tables only measured 2.3 percent of the worldwide market. IPad still dominates the table market and increased sales from second to third quarter by 20 percent, the rate of increase has slowed dramatically.
With iPad’s substantially high price tag and Android’s affordable price tag it is speculated that iPad will continue to loose market share to Android. Speculators believe the slow decline of iPad is due to the fact iPad has reach much of its targeted consumer market–the consumer who could afford a table for $500 or more. One table to watch is Amazon’s new Kindle Fire, with a price point of $199. Kindle Fire goes on sale November 15, 2011 and represents an new entry level table.
Predictors say that 148 Million iPads will be sold by 2015. Predictors are also expecting Apple to respond to the pricing competition by releasing entry level priced models. Entry level iPad’s could be smaller in size, matching the 7-inch Kindle Fire. Many do not believe that Apple will respond to the Android competition with lower priced entry level units. Ross Ruin, director of industry analysis for consumer technology at NPD Group, has noted that Apple still has a significant lead in the tablet market and is one who believes they will not respond to Android lower price point competition.
Gartner, another leading research firm, has chimed in with their projections. They project Apple selling approximately 73 percent of the world's tablets in 2011 (63 million in unit sales), and Android selling 11 million units. In the year 2015, Gatner predicts Apple will reach 148 million iPads with Android reaching 116 million. Their projection also includes 34 million Microsoft-based tablets, and about 26 million QNX tablets.
One thing is for sure, Android tablets are gaining momentum and I do not see the upward climb stopping anytime soon.
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