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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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RE: This is not surprising
By themaster08 on 5/19/2011 3:26:38 AM , Rating: 2
As an Appe fan I am very, very happy with the way the tablet market is shaping up :)
Let's just say that for the sake of this question that Android was on par with the iPad in terms of applications, and Honeycomb had been ironed out so that it ran buttery smooth and had no known bugs. Would you ever consider something like the Transformer over the iPad? If not, why?

If the answer is no, is it because it doesn't fit into the tightly integrated Apple ecosystem you have trapped yourself into? Do you feel obliged to purchase Apple products, not just because you're a fan, but because you have invested so much into their ecosystem you feel you can't afford to break out of it? Why would you want to limit your choice like so, when there could be a product out there better suited to your needs as opposed to the urge of satisfying your fanboyism? Do you ever consider alternatives?

I would really like to know your thoughts on this one. This doesn't just go for tablets either, it goes for any product of which Apple is in that market.

RE: This is not surprising
By habeebhashim on 5/19/2011 4:48:37 AM , Rating: 1
I can't speak for Tony, but here's why I chose to stay within the Apple ecosystem. Before that though, a bit about me; Long time PC user. 1st computer 8086 given by my bro who left to Oz for higher studies. Upgraded to an insanely expensive 80286 :D Many many computers after that... mostly laptops after I went to Uni... HP's, Dell's, Asus, a Fujitsu Siemens (which was horrible), an Acer (with a failed mb... horrible)

1st taste of Apple was when I worked partime in a publishing house in 2000. Hated the experience. How DO you quit them dang applications? WTF!!?

Anyways... after Uni, well paying job and easy timing allows my great love for laptops and gaming. Bought quite a few, from the earlier Clevo behemoths to my final Windows laptop - a Dell XLS M1730. I did spend a small fortune in between on my tower - Lian Li casing yada yada yada.... but it was the laptop that I found convenient for LAN parties.

Now... don't play the hardcore FPS any more. Settled on a bit of HoN from time to time and this game will run happily even on a Geforce 9400M. Which bring me to chose a small unibody 13" Macbook instead of lugging the XPS around. Why didn't I go with any of the other equally well built PC's like some the Alienwares or the Voodoo that HP made? Don't know... tired of Windows and Vista I guess. 7 wasn't out by then to redress the grienvences.

So there I am... 1st time REALLY using a MacOS. Blundering through its idiosyncrasies... for example... how do I rename many files in OS X? Can't do batch select and hit F2 like you would under windows :) found a small automator script and then a free app that finally did what I needed. What I'm getting at is that the experience isn't so black or white, good and bad... lots of shades of grey. And its been fun learning stuff about OSX. Eventually, it became 2nd nature. I found it more powerful for some of my tasks.

And when a 13" unibody MB Pro was available for cheap, I sold by 13" MB on ebay for about 70% of the value. Mind you, I still have the M1730... I get offers of 200-250 bucks for it... and I tell myself, for that little cash, I'd rather have it around and use it as a desktop just in case.

Speaking of desktops... won a free 32" LG TV and when the new Mini came out with HDMI output.... I said why not. I got this TV sitting around and I'm using the XPS as a desktop (now upgraded to Win 7 mind you), why not just buy a Mini and then I can plonk all of my media in it and have home sharing easy. I'd bought an iPhone by this time and there's always tons of iPod around the house (so they're not counted for reasons to stay within the ecosystem for me)...

You can see that in a space of 3 years, I've become quite proficient with OSX as a software, troubleshooting, etc for mates and others... well versed enough to write small automator scripts. Exampe is when I insert a DVD into the Mini, automator kicks in, loads handbrake, rips movie into video folder in Synology NAS (kinda like a kaliedascape system but without paying 10,000$ for it :D)

Ah... but how to take this to my 50" LCD in the hall? This was a headache as I 1st tried to use PS3 as a DLNA device (didn't work very well and wouldn't play some of the formats... lagged like a bitch sometime... I have serious doubts about that Cell thingee. Overhyped much?) and then tried with a WD Live box and then a nameless Chinese streamer. The nameless Chinese streamer worked best but had a shit UI. And god forbid if the movie stopped playing midway. Could never play that movie again until a cold restart of the NAS box and the stupid streamer... anyways... shit situation.

Until I found a 3 dollar app called Air Video O.o!!! worked well with my iPhone. I could live convert almost any format sitting in my NAS box and it will play with scrubbing and without faltering....

Hmm... have lots of iPods, a couple of iPhones, an iPad2, a couple of MBP's and a Mini... With this app, all I needed was a 99$ Apple TV. And I did and my media streaming setup was complete as the little app also had Apple's airvideo setup enabled. you could say that a windows PC and an xbox with DLNA or other device will also work... but trust me, I did that... and NOTHING worked better (for me) than that 3 dollar app, my iPhone/iPad2 and a small 2MB server program running in that headless Mini (I access it using ScreenSharing if I ever have to... which is very rarely)

Gosh.... too long a post.

"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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