Apple News, Analysis and Podcasts

The latest cell phone market share figures should have tablet makers quaking in fear of what Apple may do to them once iPad 3 arrives. Currently, Apple is sucking all the profits out of the market. Moreover, many of Apple's competitors have taken their best stab at iPad by flooding the channel, but with weak sell-though results (just ask Samsung, HP or RIM how tablets are working out).

The latest figures peg Apple's global tablet market share at 61.3%. Like with iPhone vs Android phones, we saw Android quickly race out ahead in deployment numbers, which are flattening out or starting to work back in Apple's favor. New numbers for the iPhone comes from BTIG analyst Walter Piecyk, predicting up to 30 million iPhones could be sold in the September quarter. If iPhone sales are poised for this absolute explosion, what will halo effect be for iPads vs the rest of the pack?

Today, HP slashed their HP touchpad entry price by 25%, to $399 from $499 (for the weekend only). Earlier in the week HP offered a $50 incentive. RIM's Playbook is on absolute life support, and Samsung is no longer reporting sales numbers of various devices, including tablets.

Making matters worse for these device makers is the fact their mobile phone margins are getting crushed by Apple. IDC estimates 66% of all cell phone profits are being swallowed by Apple. Does anyone believe this won't be happening in the tablet market (if it isn't happening already)?...

Rumors of iPad 3 parts and a fall launch is building for the iPad — including a possible retina display trumping the entire industry for at least a year or more. Faster, sleeker, iOS 5 and iCloud all wrapped up into the gold standard tablet that is iPad.

Cheap Android device makers are likely to spew forth more failed 7" designs and stumble around with sales in low-cost regions. Meanwhile the big players will fail to deliver profitability in taking on Apple in western markets. Apple is also likely to make good on a low-cost iPhone killer. If this low-cost iPhone does come to fruition, Apple will bring that business model straight to the iPad, picking up market share across the globe. Android will see quick growth in the tablet arena. Google will be hard pressed to achieve more than 50% of the market, and then see a slow erosion of that share, the exact same way it's witnessing the history between the iPhone and Android devices — and that doesn't give iPad wanna-be devices a very short half-life

1 Comment

1. Jules Goldstein ~ August 7, 2011 21:00
   Today, HP slashed their HP touchpad entry price by 25%, to $399 from $499 (for the weekend only). Isn't that a 20% cut?

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