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82% of US tablet market owned by Apple's iPad, The Daily loses $10M

post #1 of 60
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A new survey of U.S. tablet owners found that 82 percent of users have Apple's iPad. Also, the heavily hyped iPad-only publication The Daily generated 800,000 downloads and lost $10 million in its first quarter.

Nielsen: iPad has 82% US market share

A survey conducted by the Nielsen company in April found that the iPad has an 82 percent market share of tablets in the U.S. A total of 43 percent of those polled said they own the 3G connected iPad, while 39 percent said they own the Wi-Fi-only model.

The next closest competitor was the Samsung Galaxy Tab, with a 4 percent share. That was followed by the Dell Streak, which 3 percent of respondents owned, and the Motorola Xoom, which accounted for 2 percent of those polled.

The survey also found that about half of all tablet owners are the only ones in their home that use their tablet, while 43 percent share the device with others.

Since purchasing a tablet, 35 percent of those surveyed said they use their desktop less often or not at all. And 32 percent of those who own laptops said they use that computer less.

Tablets also have an effect on the use of e-readers, the poll found, as 27 percent of respondents who own an e-reader said they use it less often or not at all. The same percentage held for portable media players, while 25 percent who own portable game consoles said they use those devices less often.



Previous Nielsen surveys found that women prefer Apple's iPhone, while men tend to desire a Google Android handset as their next smartphone. And last June, it discovered that iPhone users download the most applications of any smartphone owners by far.

The Daily loses $10M in first quarter

News Corporation's The Daily, a newspaper-style publication that debuted on the iPad earlier this year and was the first to feature subscription billing, lost a total of $10 million in its first quarter of operation, according to paidContent.org. Most of those losses are said to be a result of investment costs associated with starting up the operation.

A total of 800,000 downloads of The Daily have occurred since the publication debuted. It kicked-off with a free trial period until users were required to pay 99 cents per week for access.

"It's really early days," News Corp president Chase Carey told analysts on his company's earnings conference call. "It's only a month-plus that it's been pay-based. It's actually one of the most downloaded news apps out there. It's a work-in-progress; we're proving the technology, refining the content. The tablet market is still in its infancy."

The Daily debuted in early February for the iPad. Though it is initially only available on the iPad, News Corp. plans to bring it to other tablet devices in the future.
post #2 of 60
Quote:
Originally Posted by AppleInsider View Post

The Daily debuted in early February for the iPad. Though it is initially only available on the iPad, News Corp. plans to bring it to other tablet devices in the future.

Why not all computers while you're at it. \
post #3 of 60
Quote:
Originally Posted by AppleInsider View Post

Previous Nielsen surveys found that women prefer Apple's iPhone, while men tend to desire a Google Android handset as their next smartphone. And last June, it discovered that iPhone users download the most applications of any smartphone owners by far.

Transitive property.

Women prefer iPhones and iPhone owners spend more money, therefore women spend more money.

... this is nothing new.
post #4 of 60
I hope The Daily debacle does not sour subscriptions. It was buggy and crashed several times during each issue, rendering it unreadable. Also, it seemed to dwnload everytime you opened it and did not have background loading. When it did reload you could not easily locate new information from old.

I would subscribe if I found out they got it right.
post #5 of 60
If competitors Motorola, Galaxy and Dell have a combined 9% of the market, and iPad has 82%, what mysterious tablet owns the remaining 9%? Perhaps iPad really has 91%? That would seem more believable.

I had high hopes for The Daily but found the bells & whistles were distracting. It took lots of swiping and tapping to find the news. Though far less glamorous, I prefer USA Today's iPad app. It is much simpler to navigate.

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post #6 of 60
Quote:
Originally Posted by OllieWallieWhiskers View Post

Transitive property.

Women prefer iPhones and iPhone owners spend more money, therefore women spend more money.

... this is nothing new.

HAHA!


Anyhow, I definitely have used my iMac less since getting my iPad. Now "less" is a relative term, of course, and considering that I basically lived on it before, that doesn't mean that I'm not using it much now. Just less.

My poor MacBook, however -- it just sort of sits there, collecting dust.
post #7 of 60
Quote:
Originally Posted by jd_in_sb View Post

If competitors Motorola, Galaxy and Dell have a combined 9% of the market, and iPad has 82%, what mysterious tablet owns the remaining 9%? Perhaps iPad really has 91%? That would seem more believable.

probably the "other" category... there are tons of $100 tablets out there. plus there is the playbook... or maybe they count the nook color?
post #8 of 60
Quote:
Originally Posted by AaronJ View Post

Anyhow, I definitely have used my iMac less since getting my iPad. Now "less" is a relative term, of course, and considering that I basically lived on it before, that doesn't mean that I'm not using it much now. Just less.

does it count if you use your iMac through an iPad remote desktop app?
post #9 of 60
USA Today already did the work of dumbing down the news, yet surprisingly The Daily was actually able to take that a step further.

I installed The Daily when it came out, looked at some 'news' on it, and damn, talk about fluff. There were maybe 2 real news stories, the rest being fashion / entertainment / sports 'news', and even the 2 or so real stories were just written without anything approaching content.

So their money-making concept is to pay for fewer words and more pictures? Sure... but then maybe I'll just install another game and at least have fun.
post #10 of 60
Why in the world does AppleInsider combine two totally different stories into one story. The market share iPads have, and the Daily story having nothing to do with each other. Other than that they are both iPad related. Do you see newspaper combining two stories into one? Please just post each single story.
post #11 of 60
Since you have a web browser and can search the web.... I just can't see the point of a paid news app....
post #12 of 60
With all this talk about using computers less because of iPad, I wonder what time of day, circumstances, types of activities are the most common.

For example, I use my iPad mostly in the evenings and on weekends. I leave it on the coffee table at home. I used to use my MBP a lot in that same situation prior to getting the iPad. Now I almost never use my MBP while at home. I rarely take the iPad outside of the home. I check my email first thing in the morning using my iPhone. I do commute every morning but it is too short to get into reading. I wait until I get to the office before I read any news either the printed WSJ or online news using my Mac Pro. If I ever have to do any real work while at home I always use my iMac. Whenever I travel out of town, I always take both my iPad and the MBP and use them each about 50% of the time while away.

At any rate I have no use for the Daily.

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post #13 of 60
Quote:
Originally Posted by GNRbeaumont View Post

It was buggy and crashed several times during each issue, rendering it unreadable. Also, it seemed to download everytime you opened it and did not have background loading. When it did reload you could not easily locate new information from old.

I would subscribe if I found out they got it right.

I ready The Daily almost every day at lunch. Just now, I just got back from lunch & reading The Daily.

It almost never crashes on me, not in a long time. They do a good job of giving you a wide range of interesting stories. I find I can skim through it in about 45 minutes each day. It's not the most in-depth, but they're getting better. I think they get it right.
post #14 of 60
I have trouble believing their numbers. Apple has sold at least 20 million iPads as of this point. If that is 82% of the market, 2% comes to ~0.5 million.

I doubt very much that a a half million Xooms (2% of the market) have been sold. Didn't Motorola say that so far, they've 'shipped' only 250,000?
post #15 of 60
Quote:
Originally Posted by jd_in_sb View Post

If competitors Motorola, Galaxy and Dell have a combined 9% of the market, and iPad has 82%, what mysterious tablet owns the remaining 9%?

It's probably a combination of the Archos, maybe some obscure tablet from Nokia plus the miscellaneous Windows-based tablets that have been marketed preceding the iPad.
post #16 of 60
I have a hard time believing that a subscription model is going to work for online news delivery.

It seems obvious to me that sustainability is achieved by free delivery + advertising. The better service and content you provide, the more popular it becomes and thus advertisers pay more.
post #17 of 60
Quote:
Originally Posted by GNRbeaumont View Post

I hope The Daily debacle does not sour subscriptions. It was buggy and crashed several times during each issue, rendering it unreadable. Also, it seemed to dwnload everytime you opened it and did not have background loading. When it did reload you could not easily locate new information from old.

I would subscribe if I found out they got it right.

I though it was a great first effort, but I had the same complaints and two others:

1. The content was only available on the iPad. I think it would have been better for readers and a better for growing The Daily's subscriber base if they had also made a browser-based version and a stripped-down version iPod that was all accessible from the same subscription. More like Instapaper.

2. The Daily did not hire any writers that I would have felt like I was missing if I didn't subscribe, and I have not seen any instances where a writer for The Daily went on MSNBC or ESPN or NPR to promote a piece. The Daily does not have writers who can shape and promote the brand, so it has been out of sight, out of mind for me since I stopped reading it after the free trial.
post #18 of 60
Quote:
Originally Posted by anantksundaram View Post

I have trouble believing their numbers. Apple has sold at least 20 million iPads as of this point. If that is 82% of the market, 2% comes to ~0.5 million.

I doubt very much that a a half million Xooms (2% of the market) have been sold. Didn't Motorola say that so far, they've 'shipped' only 250,000?

Yeah, and this survey is for US only...

So, MMI ships 250,000 Xooms world wide, to dealers, with virtually no sell through to "tablet owners" -- who are surveyed.
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post #19 of 60
I think The Daily will either fold or have to be re-concepted. The old models don't work as an app. Either make it a $0.99/day daily paper with limited interactivity (maybe even just a repackaged PDF?), or a reformatted version of an ad-supported web site (make this a free version with the app itself selling for $1.99), or a streaming video-centric version with web enhancement.

The straight-forward LIFE magazine style is not working.

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post #20 of 60
With iPads reportedly replacing laptop use for for a significant percentage of owners, I'll be curious to see how MacBook sales hold up over the next few quarters. Definitely conceivable that buyers in the market for a quality Apple product may decide that a MacBook isn't as necessary with the iPad as a purchasing option, and for less money.
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post #21 of 60
[QUOTE=SpamSandwich;1859701]I think The Daily will either fold or have to be re-concepted. The old models don't work as an app.

I took a first look and did not like it. It will not be a "Newspaper" until it has comics! Preferably a selection you can chose yourself.
post #22 of 60
[QUOTE=jwilcox;1859708]
Quote:
Originally Posted by SpamSandwich View Post

I think The Daily will either fold or have to be re-concepted. The old models don't work as an app.

I took a first look and did not like it. It will not be a "Newspaper" until it has comics! Preferably a selection you can chose yourself.

Hey, there is a good idea for an app... ALL DAILY COMICS!

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post #23 of 60
A Murdoch rag is total garbage. He became an 'American' just to circumvent our media regulations for foreigners.

Glad his junk news vehicle is losing money.
post #24 of 60
The Daily has finally been seen as a failure. A great day for the iPad, and for software in general.
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post #25 of 60
I know Nielson supposedly knows what it is doing, but answer me this: What the hell is the difference between asking someone about any of the following features:

"Easy to carry / take with you"
"Can use in multiple locations"
"Lightweight"
"Convenience"
..and to a certain extent, "Size"

What a lame survey! The only thing I can't fathom is why %19 of respondents say "Easy to carry / take with you" but NOT "Can use in multiple locations." The whole thing is preposterous and meaningless.

So there.
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post #26 of 60
Is anyone expecting non-iPad tablets to make a significant impact in the market the way Android did on the heals of iPhone, or are we seeing another iPod-like natural monopoly? I’ll wait for Honeycomb updates and iOS 5.0 before making any solid predictions but it’s not look good for Apple’s competitors.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #27 of 60
Quote:
Originally Posted by OllieWallieWhiskers View Post

probably the "other" category... there are tons of $100 tablets out there. plus there is the playbook... or maybe they count the nook color?

I love to see the rest of the field duking it out. With a humongous market it'll still be profitable for a lot of those single-digit percent players. You just have to wonder about their profit margins at this point, too.
post #28 of 60
Keep in mind guys this is a poll. I don't see how these numbers reflect anything.
post #29 of 60
Quote:
Originally Posted by solipsism View Post

Is anyone expecting non-iPad tablets to make a significant impact in the market the way Android did on the heals of iPhone, or are we seeing another iPod-like natural monopoly? Ill wait for Honeycomb updates and iOS 5.0 before making any solid predictions but its not look good for Apples competitors.

I'd love to see one develop, of course, but the competition isn't bringing the same bone-headed designs and feature-creep like they did with MP3 players. Also, Apple keeps bringing amazing features such as Facetime that others have in only limited models or with small pools of users while Apple has it for everyone just like that.

I haven't touched an Android tablet yet but very few Android phones are designed nearly as single-mindedly and elegantly as the iPhone. Some would say it's an advantage to have all the choices with Android but, c'mon, the variety is as much about gee-whiz as it is about getting a product just right.

Some bells and whistles from Android phones that make me scratch my head - dual-screens, curved face, 3-D photos and video, slide-out keyboards - to mention just a few features that should have been left on the reject pile. While these features do sell phones, they just work to distinguish the phones from one another and they aren't improvements. [/soapbox]
post #30 of 60
Quote:
Originally Posted by rangerdavid View Post

I know Nielson supposedly knows what it is doing, but answer me this: What the hell is the difference between asking someone about any of the following features:
.

"Easy to carry / take with you" = right size, fits my briefcase, backpack, in my hand
"Can use in multiple locations" = multiple radios, easy to read in and outdoors, metro/bus, beach
"Lightweight" = rather carry this than my laptop, doesn't add much to my backpack
"Convenience" = boots quickly and has all my info right there unlike my full computer
..and to a certain extent, "Size" = don't have to scroll too much

See, it's easy for me to understand. These surveys are designed to identify trends and while a casual reader might not understand the distinction (heck, I doubt I fully do) I would imagine that hardware vendors pay very close attention to the distinctions and might want even more choices. Just taking a stab. I don't make surveys but can understand that interpreting the results can take work, too.
post #31 of 60
I hate being a statistic, but I'm definitely one of those people who are finding that the iPad is taking over the use of my computers at home. I have a PC and a laptop. The PC is a necessity for my gaming habits and MP3 organization. The laptop is used as a security camera in my house (the iCam app is awesome!). Beyond that, I now use my iPad for just about all the remaining computing needs in my house. It's instant on, quick to pull up what you need, and easy to use. I was thinking of upgrading my laptop (it's about 5 years old), but since I got the iPad a month ago, I have no reason to now.

82% seems low to me, but I guess there are quite a few different tablets out there. I wonder if most of those people regret their purchase. Samsung Galaxy...thanks a lot Santa

I used the Daily during it's free trial offer. I like the interface and found it easy to navigate. It had some interesting articles and looks beautiful on the iPad. But with all the sources of news out there (I love google new, and the Bing app is pretty nice too), and other free news apps like USA Today, I just don't ever seeing myself paying $.99 a week for the Daily unless they can provide something that I can't get anywhere else.
post #32 of 60
Quote:
Originally Posted by solipsism View Post

Is anyone expecting non-iPad tablets to make a significant impact in the market the way Android did on the heals of iPhone, or are we seeing another iPod-like natural monopoly? Ill wait for Honeycomb updates and iOS 5.0 before making any solid predictions but its not look good for Apples competitors.

That's a very interesting question.

I recently heard the definition of two new verbs:

1) to iPod -- to enter an existing market late and then to dominate (Tim Bajarin)

2) to Ballmer -- to kiss oneself on the ass... from the inside


As to the Android tabs (or QNX, WM7, WebOS) -- what can they offer that the iPad doesn't already have?

Then there's full Windows for tablets -- already proven to be a failure.


Apple has economies of scale, control of the supply chain that competitors can't match.


You don't buy a tablet for the same reasons you [have to] buy a phone.


By eliminating the carriers as a major marketing vehicle -- Apple has managed to force others to match price (rather than being buried in some subsidy).


Finally, I can't help but think that there are other shoes that Apple can drop in the tablet arena.
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post #33 of 60
Quote:
Originally Posted by OllieWallieWhiskers View Post

does it count if you use your iMac through an iPad remote desktop app?

Heh, ok that's a good question.

I must admit, I haven't done that. But I suppose it would have to count as using both, right?
post #34 of 60
Quote:
Originally Posted by Dick Applebaum View Post

... By eliminating the carriers as a major marketing vehicle -- Apple has managed to force others to match price (rather than being buried in some subsidy). ...

I think what this really shows is that the sole reason for Android's success to date is carrier marketing. On its own, it has no legs.
post #35 of 60
I read The Daily every morning with my first cup of coffee. I find it well worth fifteen cents a day. They're doing some truly great things with the interface, it gives me a good news summary, the photos are very well done - all in all it's a nice warmup to the day's news.

It's not the nytimes but it was never meant to be. IMO it's way better than USA Today, CNN, MSNBC et al. I agree they don't have a world class journalism staff that breaks stories or gives amazing insights to events. It is what it is and since the last few updates it's solid and bug free.

I don't think 800,000 downloads qualifies as a failure by any stretch. We don't know how many subscribers they retained but I bet they're reasonably pleased at this point.
post #36 of 60
Quote:
Originally Posted by Gatorguy View Post

With iPads reportedly replacing laptop use for for a significant percentage of owners, I'll be curious to see how MacBook sales hold up over the next few quarters. Definitely conceivable that buyers in the market for a quality Apple product may decide that a MacBook isn't as necessary with the iPad as a purchasing option, and for less money.

In that case i am screwing up the stats since i am replacing desktops by laptops. So even if i am using my ipad a lot, i still bought a laptop. In my case its the imac that is getting hit.
post #37 of 60
"Most of those losses are said to be a result of investment costs associated with starting up the operation."

Start up costs, one month in are hardly definable as losses .... yet.
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post #38 of 60
Quote:
Originally Posted by rangerdavid View Post

I know Nielson supposedly knows what it is doing, but answer me this: What the hell is the difference between asking someone about any of the following features:

"Easy to carry / take with you"
"Can use in multiple locations"
"Lightweight"
"Convenience"
..and to a certain extent, "Size"

What a lame survey! The only thing I can't fathom is why %19 of respondents say "Easy to carry / take with you" but NOT "Can use in multiple locations." The whole thing is preposterous and meaningless.

So there.

They didn't even factor in "portability", "enhanced mobility", "movability", and "lack of heaviness". This survey is incomplete - we'd have a much better feel for what users want if they had just covered those too!
post #39 of 60
Quote:
Originally Posted by SpamSandwich View Post

I think The Daily will either fold or have to be re-concepted.

Heh!

Re-concepted, re-purposed, re-imagined, re-released, re-fused.
post #40 of 60
Quote:
Originally Posted by Dick Applebaum View Post

That's a very interesting question.

I recently heard the definition of two new verbs:

1) to iPod -- to enter an existing market late and then to dominate (Tim Bajarin)

2) to Ballmer -- to kiss oneself on the ass... from the inside

Apple has economies of scale, control of the supply chain that competitors can't match.



And, to iPad -- to enter an existing market early and then to dominate it.

To iPwn -- what Apple has been doing to the competition lately.
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