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Acer exec says Apple's 'closed' iPad will drop to 20% market share

post #1 of 228
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The chairman of PC maker Acer has predicted that Apple's iPad will drop to just 20 percent of the total tablet market when competing options are introduced, due to the "closed platform" of the iOS operating system.

JT Wang, chairman of Acer, spoke with the Economic Daily News and shared his prediction that the market share of the iPad will drop from 100 percent to between 20 percent and 30 percent.

Acer, like seemingly every other PC maker, is expected to get into the tablet business following the success of Apple's iPad. That's a change from earlier this year, when the company said before the iPad launched that it had no intention of competing with Apple in that market.

Wang based his prediction on recent reports that Android-based smartphone shipments had surpassed the iPhone. Google's Android mobile operating system is available on a number of devices and carriers, while iOS is only available on the iPhone, iPad and iPod touch.

In his comments, Wang, as translated by DigiTimes, said that he believes a "closed platform" like Apple's iOS will fall to an "open" one such as Google Android. Apple does not allow customization of its operating system, and must approve every application that is made available for download through its digital App Store.

But despite being "closed," Apple's App Store has many more options than the Android Market, with about a quarter-million applications currently available for download. Android, by comparison, has more than 70,000 applications.

Wang, however, believes that the success of Android is inevitable. He noted that based on his past experience, open platforms will succeed, and he believes "Android simply needs a little more time before it turns strong."

Released in April, Apple's iPad sold more than 3 million in its first 80 days of availability. Numerous competitors have been pitching their own alternatives, but so far a major, formidable competitor has not been released.
post #2 of 228
Same for iPhone?
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post #3 of 228
Same for iPod?
post #4 of 228
Quote:
He noted that based on his past experience, open platforms will succeed

Yes, because Windows and iPod were SO open compared to Linux. Why doesn't Linux run on every desktop in the world? Because consumers don't care about openness. They want value, utility, and entertainment. Android is looking like it will be a reasonable contender, but nothing is inevitable.
post #5 of 228
Open: What we sell.
Closed: What they sell.
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post #6 of 228
Quote:
Originally Posted by storneo View Post

Same for iPod?

My thoughts exactly. Although, iTunes is "Open" as it runs on both Mac and Windows, and that's what drives the iPod (minus the iPod Touch). As opposed to the iPhone, where iOS drives the platform.
post #7 of 228
Customization is for the 5% geeky fringe. Most consumers could care less about reading the instructions, much less customizing their device. Ease of use and dependability are what 95% of consumers seek.
post #8 of 228
In the past, Apple wrote all of the applications, now they provide API's and a way to inject apps into the device. Still smart to control a portion of the process, but that is way different from being considered a closed system.
post #9 of 228
If it comes to it, that would be the top 20% of the market, with the rest racing to the bottom.
post #10 of 228
%20 is huge .




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post #11 of 228
Huh? What is Acer ? Oh I see he's a wang.
post #12 of 228
Apple stopped caring about marketshare a long time ago. They measure success by profit.

Even at 20% they'll still be raking in more than the competition. Hundreds of tablets will be competing for the 80%.
post #13 of 228
I can't wait until statements like these are proven to be as ridiculous as they sound now.
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post #14 of 228
What a ridiculous statement. Why doesn't he wait until he has a product and see how it does in the market before bragging about how well he's going to do.

Oh, and btw, I'm sure Apple fully expects that their 90% share in tablet devices will fall. But if it ends up like the PC industry where they sell 5-10% of the systems but make 35% of the profits, then a 20% market share probably wouldn't be too bad. Apple is NOT interested in market share for its' own sake.
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post #15 of 228
Quote:
Originally Posted by Foo2 View Post

If it comes to it, that would be the top 20% of the market, with the rest racing to the bottom.

My thoughts exactly, 1 company 20% of the market. 15 or more companies the other 80%. Sounds like acer is already admitting defeat.
post #16 of 228
Quote:
Originally Posted by DougDolde View Post

Huh? What is Acer ?

They are the second-largest computer company in the world. Their unit shipments dwarf those of Apple.

But all we care about is Apple, so it is easy to miss what is going on in the world around us.
post #17 of 228
This 20% marketshare theory doesn't make any sense. Apple is a vicious competitor and will out-maneuver any competitor.

If marketshare begins to slide Apple has lots of quick solutions they can make for that problem (cut prices, add features, support more networks) that will re-apply the pressure on competitors.
post #18 of 228
Quote:
Originally Posted by Kyle76 View Post

Customization is for the 5% geeky fringe. Most consumers could care less about reading the instructions, much less customizing their device. Ease of use and dependability are what 95% of consumers seek.

that is a fair point...but may i also point out that many Enterprises create apps for their mobile devices (as well as pc's) and having a closed platform like iOS is limiting.
post #19 of 228
With no respect to market share in the tablet market, the 'closed' iOS attracts developers because the ecosystem is geared toward making consumers actually pay for their consumption. Profit motive drives development, and because piracy is more prevalent when it's easier, the profit motive pendulum will, for the foreseeable future, swing apple's way. If I'm a developer, I'm publishing to make money, not to praise the merits of an 'open' environment.

Plus, the other folks have proven to lack the creativity and/or drive to succeed with their interface and experience without running afoul of Apple's copyrights and patents.
post #20 of 228
And the iOS SDK is free...
post #21 of 228
Quote:
Originally Posted by ElmCityWeb View Post

I can't wait until statements like these are proven to be as ridiculous as they sound now.

Won't have to wait long.

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post #22 of 228
Quote:
Originally Posted by antkm1 View Post

that is a fair point...but may i also point out that many Enterprises create apps for their mobile devices (as well as pc's) and having a closed platform like iOS is limiting.

Enterprises are able to create and distribute their apps at will on the iPhone and iPad via the Enterprise Developer program. How is that 'limiting'?

http://developer.apple.com/programs/iphone/enterprise/
post #23 of 228
Quote:
Originally Posted by Foo2 View Post

If it comes to it, that would be the top 20% of the market, with the rest racing to the bottom.

Quote:
Originally Posted by brucep View Post

%20 is huge .




9

Quote:
Originally Posted by mmmdoughnuts View Post

My thoughts exactly, 1 company 20% of the market. 15 or more companies the other 80%. Sounds like acer is already admitting defeat.

Agreed - he's stating the obvious really. 20 - 30% is 4 - 6 times greater the global Mac market share, and might mean 20 - 30 million units per year, or around 10 billion in revenues. I'm sure Acer and Dell and others can cobble together a device that runs Windows 7 and sell it for $250, but it'll be awful and have 5% margins.

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Do not overrate what you have received, nor envy others.
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post #24 of 228
I'm fine with Apple having only 20% of any market. Keeps me in the minority and less likely to have a issue with viruses.
post #25 of 228
Quote:
Originally Posted by jragosta View Post

What a ridiculous statement. Why doesn't he wait until he has a product and see how it does in the market before bragging about how well he's going to do.

.

If you don't have a product, sell the FUD.
Worked well for MS for years.
post #26 of 228
Android = open because it can run on low quality hardware like Acer. After seeing various Android based tablets, I can conclude that "If it is not Apple, it will fail eventually".
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post #27 of 228
It'll be interesting when more tablets are released. Hopefully they'll be cheap cuz I'll probably get one just so I can tinker around with it. I'll definitely still keep my iPhone and iPad though, because nothing can beat Apple's App Store.
post #28 of 228
Couldn't agree more about iOS4. I just said basically the same thing on the other thread.

Instead of doing what you want on your device like flash or porn, you do what the CEO of some company wants you to do. But because this CEO is a celebrity you all follow his whims like he was a rapper hawking the latest Reebok hi tops. Ohhh, Ahhh, I want a pair of hundred dollar sneakers made in a sweatshop! I'm an American and I want it! NOW!!

Before you say I'm a troll, remember the story where Jobs walks out of a restaurant cause he can't get a table? It was the lead story at AI and the photos were picked apart to see if they were fakes. Comparing shadows on objects and such stuff.

No. I'm absolutely right about iOS4 and it's master. And all of you would be the first to give me a "totally agree" or a "spot on" if you were not bloated on Apple pie.
post #29 of 228
Quote:
Originally Posted by SendMe View Post

They are the second-largest computer company in the world. Their unit shipments dwarf those of Apple.

But all we care about is Apple, so it is easy to miss what is going on in the world around us.

Who cares. For all that volume, they make, sadly, an annual profit of of ~US$350 million across the whole company.

I'll venture a guess that the iPad alone makes a much larger profit than that (If we assume, say, 5 million iPads will be sold this year, at an average price of $600, with a profit margin of 20% - Apple's average - that's $600 million in net income).
post #30 of 228
Quote:
Originally Posted by GQB View Post

Enterprises are able to create and distribute their apps at will on the iPhone and iPad via the Enterprise Developer program. How is that 'limiting'?

http://developer.apple.com/programs/iphone/enterprise/

The bottom line is, the term "open" the way it is used mostly, and the way it's being used by Acer, is little more than marketing speak. It means about as much as "new and improved" and "now with secret ingredients."
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post #31 of 228
I love how Google keeps making "open" this big marketing push and how Droid can do so much, but in practice it rarely impacts consumers. Consumers want something that "just works"... they don't want to know all the little tips and tricks they need to perform to get a full day of battery life. They may think it's fun to customize the device all over until it starts becoming slow and a nightmare to use.

Sure, scores of manufacturers will probably jump on the Android band wagon, and together they might make a dent in the iPad business. But they each have their own agenda and there WILL be fragmentation. Many devices, many form factors, thousands of combinations of things that developers have to account for. In the long run, iPad is a consistent experience. Android tablets will not be.

Windows isn't open and its on, what? 90% of the computers in the world? The argument that open source will prevail is poor.
post #32 of 228
Quote:
Originally Posted by AppleInsider View Post

The chairman of PC maker Acer has predicted that Apple's iPad will drop to just 20 percent of the total tablet market when competing options are introduced, due to the "closed platform" of the iOS operating system.

JT Wang, chairman of Acer, spoke with the Economic Daily News and shared his prediction that the market share of the iPad will drop from 100 percent to between 20 percent and 30 percent.

Acer, like seemingly every other PC maker, is expected to get into the tablet business following the success of Apple's iPad. That's a change from earlier this year, when the company said before the iPad launched that it had no intention of competing with Apple in that market.

Wang based his prediction on recent reports that Android-based smartphone shipments had surpassed the iPhone. Google's Android mobile operating system is available on a number of devices and carriers, while iOS is only available on the iPhone, iPad and iPod touch.

In his comments, Wang, as translated by DigiTimes, said that he believes a "closed platform" like Apple's iOS will fall to an "open" one such as Google Android. Apple does not allow customization of its operating system, and must approve every application that is made available for download through its digital App Store.


But despite being "closed," Apple's App Store has many more options than the Android Market, with about a quarter-million applications currently available for download. Android, by comparison, has more than 70,000 applications.

Wang, however, believes that the success of Android is inevitable. He noted that based on his past experience, open platforms will succeed, and he believes "Android simply needs a little more time before it turns strong."

Released in April, Apple's iPad sold more than 3 million in its first 80 days of availability. Numerous competitors have been pitching their own alternatives, but so far a major, formidable competitor has not been released.


Acer. need one say more?
post #33 of 228
Quote:
Originally Posted by screamingfist View Post

Acer. need one say more?

Take it easy on Acer. They fulfill a need in the market place. Not everyone can afford the Apple Tax.
post #34 of 228
His quotes would sound pretty good for his company, if he worked for Google.
post #35 of 228
Quote:
Originally Posted by fuwafuwa View Post

I can conclude that "If it is not Apple, it will fail eventually".

i think this is a bit excessive [to be polite].

while i agree with Kyle76 and antkm1, there will be developers who begin to eschew iOS simply because it is closed. i don't think apple hit the tipping point with iOS that it did with the iPod.

as for storneo's quote "same for iPod?", NOTHING came close to the quality and simplicity of the iPod as an MP3 player, but Android and [ugh] winMo7 seem to have fairly elegant interfaces and both companies can toss billions of dollars behind their software.

while i certainly prefer iOS to Android, i have no doubt that Android will NOT fail, and that's good for iOS users. companies need competition. when are we going to get live widgets for app icons? [why does my weather app icon always have to say it's sunny and 73 degrees?] it wouldn't happen nearly as fast if someone out there hadn't already thought of it first.

i will defend Apple as a leading tech innovator in any argument, but i'm not foolish enough to think they don't have to [or do] start their copy machines from time to time.
post #36 of 228
what does he mean when he say "open".

Last time I check Android is the only platform that has already used the kill switch.

Google is the only company that sent a C&D to Android's hacking community.

So what open is he talking about.
post #37 of 228
Quote:
Originally Posted by antkm1 View Post

that is a fair point...but may i also point out that many Enterprises create apps for their mobile devices (as well as pc's) and having a closed platform like iOS is limiting.

What exactly is this bogus closed system you talk of... Closed because it does not work on a crappy Acre? In the real terms of the software the system is not closed there is a SDK for the platform which means this is an OPEN system. Now if it was a black box with no way to program the platform then and only then would it be a closed system. Please take the time to know what you are talking about.
post #38 of 228
Android is the Linux of mobile devices...
post #39 of 228
Quote:
Originally Posted by Blackintosh View Post

Take it easy on Acer. They fulfill a need in the market place. Not everyone can afford the Apple Tax.

Well if it was 'i can only afford an acer or emachine or nothing' then i would advise nothing till more cash came in...then go ASUS if you have to have a pc...
post #40 of 228
Quote:
Originally Posted by extremeskater View Post

Low quality hardware? What world are you living in? The Evo, Incredible, Droid X and Droid 2 can match the iPhone and in many cases beat it hardware wise. My Evo running 2.2 is far faster then the iPhone and that can not be debated.

I said Acer, and especially on tablet market. But if you want to talk about, Evo etc, they just barely matched 2 years old 3GS. Android now is slowed down, developers now wait and see the result Oracle vs Google. And now Google plan to sell shortcut with Chrome Web Store?
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