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Apple's "new iPad" and iPad 2 continue to trounce the competition

Although there was a semblance of a tablet market that had been around for nearly a decade in the PC space, it wasn't until Apple's iPad launched in 2010 that the market really took off. The original iPad was a success for the boys from Cupertino, while the iPad 2 took Apple's tablet sales through the roof. According to the latest figures from IDC, it appears that the "New iPad" is continuing that trend, putting it far ahead of its Android-based rivals.
While overall tablet sales were predictably down from the holiday season (28.2 million units shipped in Q4 2011) to 17.4 million units in Q1 2012, it still represented a 120 percent increase compared to Q1 2011 (7.9 million units). Not surprisingly, Apple's iPad led the way with 11.8 million tablet shipments during the first quarter.
"Apple's move to position the iPad as an all-purpose tablet, instead of just a content consumption device, is resonating with consumers as well as educational and commercial buyers," said Tom Mainelli, research director for Mobile Connected Devices at IDC.
Apple was no doubt helped out by its decision to keep the year-old iPad 2 (16GB, Wi-Fi) onboard to lower the price of entry for its tablet family to $399.

Android tablets, however, took a nose dive in market share during the first quarter, with Amazon falling from second place in shipments to third place, effectively swapping spots with Samsung. The sharp decline in Kindle Fire sales along with an overall weakness in Android-based tablet sales allowed Apple to rebound from a worldwide market share of 54.7 percent in Q4 2011 to a stronger position of 68 percent in Q1 2012.
"It seems some of the mainstream Android vendors are finally beginning to grasp a fact that Amazon, B&N, and Pandigital figured out early on: Namely, to compete in the media tablet market with Apple, they must offer their products at notably lower price points," Mainelli continued.
Mainelli also expects Amazon to ship a larger version of its Kindle, presumably with a 10.1" display. Unlike the current Kindle Fire, which uses a heavily modified fork of Android 2.3, the larger tablet will use the mainstream version of Android used by tablet makers like Samsung, Toshiba, and Lenovo.

Source: IDC Group [press release]

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Follow the money
By Tony Swash on 5/3/2012 6:35:35 PM , Rating: 2
Follow the money. In phones there are just two players. It's not iPhone versus Android it's Apple versus Samsung with the latter still trailing badly. Apple is now taking 73% of the smartphone industry's profits, with Samsung capturing 26%, that leaves just 1% profit for everyone else. In tablets just two players. It's not iPad versus Android it's Apple versus Amazon with the latter still trailing badly. Apple still control 68% of the units sold and my guess would be that Apple takes 95% plus of the tablet profits.

Google continue to make a loss on Android and from the point of view of ensuring Google's ubiquity in the mobile service stack, which is the reason Google did Android, the Android project would seem to be a failure. Google will probably try to enter the cheap end of the tablet market with a loss making tablet sometime soon. It will almost certainly fail. Google have almost zero track record and zero success rate as a device maker. The Google tablet will suffer the same fate as Google TV in that it will be irrelevant and, after an initial flush of gushing coverage, obscure. I would not be surprised if Google give up on Android, although such a move will be sold as a move to a 'more open' stance, i.e 'if anybody wants it they can have it just don't call us'.

Microsoft's remaining window of opportunity to pull off something other than utter failure in mobile is rapidly closing. If Samsung decides to dump Android on tablets and go W8 maybe Microsoft might claw something back to become the distant also ran in tablets. In phones they seem finished.

Amazon have stalled with the Kindle Fire but will persevere with more, possibly cheaper devices, the only thing that they will make a dent in is Amazon's bottom line.

This time next year iPhone and iPad sales will have doubled again and Apple's revenues and profits will also have doubled.

RE: Follow the money
By troysavary on 5/4/2012 7:29:54 AM , Rating: 3
What makes you think the window has closed for MS to succeed in the tablet space? The consumer oriented tablets market is still brand new. While there have been Windows based tablets and convertables for years, the hardware was never really there before for them to be anything more than a very specific market. Now that we have the hardware in place, MS is making their first serious effort at a touch based OS, and it is very good. You under-estimate the appeal of having a tablet that is every bit as capable as a desktop. There is a huge ecosystem of Windows and X86 software that people do not want to leave behind. A tablet that can access that in a comfortable form factor with acceptable battery life will suit many of us far more than an iToy or an Android POS.

RE: Follow the money
By celticbrewer on 5/4/2012 10:58:57 AM , Rating: 2
Where do you come up with that crap? Samsung outsells Apple globally. Apple barely otusells Samsung in the US, but iOS is still about half the marketshare of Android as a whole.

You should take your own advice and :follow the money:. Android was never about making a direct profit. It's a gateway to bring customers to google and its advertising.

iOS is a gateway to bring people to iTunes. Except iSheep are stupid enough to pay for that gateway. It's funny how Exxon with its huge profits was a greedy cancer on society. But now that Apple makes even more profit than them, it's considered a good thing. You people are getting porked in every way and happy about it. Pathetic!

RE: Follow the money
By Tony Swash on 5/4/2012 1:39:34 PM , Rating: 2
Follow the money. Only Samsung makes money on Android, and they make a a third of Apple's profits, everybody else including Google and Amazon make a loss on Android. Except for Samsung the Android ecosystem is land of lost business dreams and evaporating profits. The only place that is worse is the WP7 ecosystem.

Android was never about making a direct profit. It's a gateway to bring customers to google and its advertising.

And it is a costly failure. Google make more money from iOS than from Android and mobile continues to generate a tiny revenue stream per user compared to the desktop browser ad market. Google needs a plan for mobile but Android turned out to not be it, they should have stuck with their alliance with Apple.

iOS is a gateway to bring people to iTunes.

Don't be a clod, it's the other way round!. Apple makes it's money from hardware, and all of it's service stack (even though much of does indeed make a profit) is there to add value to and sell hardware.

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"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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