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Motorola Xoom needs a price cut  (Source: Motorola)
Android tablet shipment forecast cut as iPad shipment expectations grow

The tablet market is growing by leaps and bounds and Apple with its iPad is the source of much of that growth. There are a number of Android tablets on the market today, but they aren't selling well and some users are complaining about the Honeycomb operating system and the availability of tablet-specific apps.

Analysts have agreed that the tablets are taking market share from the notebook and netbook, but the outlook for tablets overall has taken a downturn recently. The reason that the estimates for overall shipments by analysts are changing has to do with the sinking popularity of Android tablets. While Android offerings are seeing estimates for shipments cut, the iPad is actually being increased.
Jefferies analyst Peter Misek noted about six months ago that the forecast for 2011 tablet sales was 100 million. After a recent poll of consumers, Misek has changed his predictions by a whopping 30% reports eWeek. He believes that 70 million tablets shipped is a more realistic expectation.

Misek wrote in a research note, "We now believe 70 million to be more realistic due to: 1) Android 3.0 Honeycomb needing polishing, and 2) Android tablets that are priced too high."

Misek also thinks that if tablet makers like Motorola and Samsung want to compete with the iPad, they are going to need to take a hit and cut the price. Bill Shope from Goldman Sachs also lowered the overall estimates for tablet shipments in 2011 and 2012. The decline was due to reduced estimates for Android tablets, the estimates for iPad shipments actually increased.

Shope wrote, "Our iPad forecast remains unchanged, though we have lowered our non-Apple tablet unit assumptions by 2.3 million units in 2011 and 2012." He continued, "Meanwhile, we have raised our forecast for Apple's tablet market share to 66.4 percent in 2011 (64 percent prior) and 66.6 percent in 2012 (65 percent prior). Overall, we are expecting 57.7 million total tablets for 2011 and 78.0 million tablets for 2012, versus 60.1 million and 80.3 million previously."

NVIDIA CEO Jen-Hsun Huang has also said that for Android tablets to be competitive, they need to be cheaper. NVIDIA has a vested interest in the Android tablet market since his company makes the Tegra processors that many of the newest Android tablets use.

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And meanwhile Asus is ramping up EEE Pad production
By micksh on 5/18/2011 1:37:41 PM , Rating: 5
They are selling like hotcakes and will continue to sell.
The formula is simple - make decent tablet with IPS screen and dual-core and price is at least $100 cheaper than iPad. Hopefully soon more OEMs will realize that.

By CurseTheSky on 5/18/2011 4:05:14 PM , Rating: 5
Agreed. I love mine, but if it were $600+ for just the tablet (not including the dock), I wouldn't be holding one right now.

The other attractive point of the TF101 is the dock. Sure, $150 extra on top of the $400 (16GB) or $500 (32GB) that you just spent on the tablet itself is a lot to ask, but my God, look at the feature set.

You're getting:
- 2 USB ports (USB mass storage, or mice / etc. with Android 3.1)
- An extra battery, roughly doubling the overall capacity, which actually CHARGES the tablet when docked
- A full-sized SDHC (SDXC?) slot
- A nice keyboard and touch pad
- The ability to fold it up netbook style

No other tablet to date can boast that feature set. If other manufacturers stop trying to copy the iPad and actually do some innovation, they might start selling something.

By seraphim1982 on 5/19/2011 4:31:38 PM , Rating: 2
This article is so bias... tablets are too expensive...

Yet the IPAD2 and XOOM are up $300 more than my ASUS transformer.

BTW, I have a Transformer, it is the best priced quality tablet on the market. Not because I work for them, because it is. I have tested all the tablets including the XOOM, IPAD1/2, Toshiba (not released), and Playbook.

$400 is still the cheapest tablet on the market.

By rupaniii on 5/19/2011 7:02:27 PM , Rating: 2
This is moving because it can be a Tablet or a Netbook. This is a product capable of added value and the differentiation matters when your name is not Apple or HP. I'm very interested in the doc myself. HP is about to bring it with their tablet. It doesn't run android either, and , android isn't leading the tablet market, so, we have a war on people!

By marvdmartian on 5/19/2011 8:03:44 AM , Rating: 2
Precisely the problem that other tablet manufacturers are having. They're putting out an unproven product, at a price point similar to the iPad. Doesn't matter if it's more robust hardware, since most people won't notice the difference (techies the exception).

Add to that the fact that so many of the apps that Apple had for their iPhones worked just as well on the iPad, and it's the icing on the cake that Steve Jobs is eating.

By melgross on 5/19/2011 3:23:19 PM , Rating: 3
Well, we just have their word for it.

Remember the Palm Pre? According to Palm and Sprint, it too was selling like hotcakes. It was out of stock everywhere. "Don't worry", they said, "we'll make more so that everyone can have one!". It turned out that they only sold 50,000 the first week, and it was a failure long term. Same thing for WP7 phones. MS said that they were selling very well, but we know see that they likely sold no more than 1.6 million since October, and about 40 thousand the first week.

Somehow, I don't think that the Asus is selling nearly as many as they want people to think. It's really not likely that they couldn't get enough parts, as they manufacture for others as well, and they aren't looking for so many. So the "Oh, we couldn't make enough.", seems to be just a bit wishful on their part.

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

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