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Computer industry

Apple's Dominance in the Tablet Market Faces New Challenges

Strategic Insights

— 2 min read

The sudden demise of Hewlett-Packard's WebOS TouchPad and the struggling sales of other non-iPad tablets have highlighted the challenges facing tech giants in gaining a foothold in the tablet market dominated by Apple's iPad. Several analysts have expressed concerns about the sales of tablets from companies like Dell, Asus, and Motorola, which have failed to gain significant traction with consumers. Meanwhile, Apple's iOS tablet software remains the top player in the market, accounting for 61.3% of the tablet market share in the second quarter, according to Strategy Analytics.

Key Takeaways:

  • The non-iPad tablet market has struggled to gain significant traction with consumers, with several high-profile failures including the Dell Streak 5, HP WebOS TouchPad, and Motorola's Xoom.
  • Apple's iOS tablet software accounted for 61.3% of the tablet market share in the second quarter, leaving its competitors far behind.
  • Google's Android tablet software held a 30.1% share, while Microsoft and RIM had significantly smaller market shares of 4.6% and 3.3%, respectively.
  • Google's acquisition of Motorola Mobility and its plans to release the "Ice Cream Sandwich" tablet software, which will unite the Android software used in tablets and smartphones, have raised the stakes for Apple.
  • Microsoft's upcoming tablet software, Windows 8, is expected to be released in the fall of 2012 and could pose a significant threat to Apple's dominance.
  • Amazon's planned tablet, which will feature Android's Honeycomb OS, a 7-inch screen, and be priced under $300, has the potential to be a "game-changer" and outsell other Android-enabled tablets.
  • Sony Corp is also releasing its first two tablets in the fall, and analysts believe that the market will see many new competitors emerge.

Statistics:

  • 61.3%: Apple's market share of tablet software in the second quarter (Strategy Analytics)
  • 30.1%: Google's market share of tablet software in the second quarter (Strategy Analytics)
  • 4.6%: Microsoft's market share of tablet software in the second quarter (Strategy Analytics)
  • 3.3%: RIM's market share of tablet software in the second quarter (Strategy Analytics)
  • 7 inches: Screen size of Amazon's planned tablet (estimated)
  • $300: Price estimate of Amazon's planned tablet
  • 3 million: Forecasted sales of Amazon's planned tablet in the first year (Robert Baird & Co)
  • Fall 2012: Release window for Microsoft's tablet software, Windows 8
  • Fall 2011: Release window for Amazon's planned tablet

Sources:

  • BSS News Agency
  • Detwiler Fenton
  • Boston Globe
  • Strategy Analytics
  • BGC Financial
  • Robert Baird & Co
  • NPD Group

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