iPad challengers seen as having better chance in Europe - report

Posted:
in iPad edited January 2014
A new analysis claims tablet makers looking to compete with the iPad in the market may stand a better chance in Europe, though pricing could be an issue for Apple's rivals.



Research firm Forrester said on Tuesday that Apple's smaller retail presence in Europe poses an opportunity to competing companies including Samsung, Acer and Research in Motion, Reuters reports. The iPad maker has 52 stores in the region, compared to 238 in the United States.



"There is this opportunity for iPad challengers, but the competition is very fragmented. Competing with Apple will require a different approach from what we've seen so far," said analyst Sarah Rotman Epps.



But, in order to compete, competitors will need to cut their prices, as Apple's larger scale and efficient supply chain give it an advantage. "A competitor to Apple would have to put together the right content, the right price and the right channel strategy. There isn't anyone that has all three," she said.



"Manufacturers, retailers and operators we spoke with all commented on the failure of the first 7-inch tablets that attempted to compete with the iPad," Forrester said. "The newer generation of iPad challengers, such as the 10-inch Samsung Galaxy Tab and the Acer Iconia Tab, are getting better reception, but they're still at a disadvantage to Apple in terms of channel strategy."



The firm surveyed nearly 14,000 online consumers throughout Europe to find that between 2 and 7 percent of consumers surveyed own a tablet and 10 to 14 percent are interested in buying one. Tablet ownership was highest in Spain and lowest in France. Interest in tablets was highest in Germany.



Forrester sees Apple maintaining an 80 percent share of the tablet market in the U.S. and a 70 percent share in Europe in 2011. Europe is expected to account for 30 percent of worldwide tablet sales, which are forecast to reach 48 million units this year.



After first releasing the original iPad in the U.S. in April 2010, Apple quickly rolled the tablet out to several European countries. Apple's pricing results in a premium for European customers, who pay as much as $702 for the entry-level iPad 2, which costs $499 in the U.S.



Earlier this year, European regulators indicated that Google's Android operating system may help Apple avoid antitrust probes. The European Commission indicated that the touchscreen tablet market is "relatively new and evolving" and alternative platforms are emerging.



Apple sold 9.25 million iPads in the June quarter with growth of 183 percent year over year.
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Comments

  • Reply 1 of 51
    titan10titan10 Posts: 27member
    Apple is not paying so much attention to European markets.



    Especially when you came to prices.





    T
  • Reply 2 of 51
    madsmads Posts: 2member
    The smallest iPad in US is 499,- USD

    In Denmark it's approx 735,- USD
  • Reply 3 of 51
    Oh come on, clearly the US advertised price does not include tax, the Danish advertised price does. This comes up every time price comparisons to the US are made. Why are there still people having problems understanding this?
  • Reply 4 of 51
    iPad challengers seen as having better chance in an Alternate Universe where Apple Headquarters was swallowed by an earthquake a year ago.





    It should be clear now that Apple and the rest aren't competing: they are in different leagues.
  • Reply 5 of 51
    nvidia2008nvidia2008 Posts: 9,262member
    <Say it with me in a Spartan tone>They'd have a better chance....... in Hell!!!
  • Reply 6 of 51
    dnxdnx Posts: 1member
    Quote:
    Originally Posted by TuckerJJ View Post


    Oh come on, clearly the US advertised price does not include tax, the Danish advertised price does. This comes up every time price comparisons to the US are made. Why are there still people having problems understanding this?



    well, its true. I just payed 1135€ for a 13 inch Macbook Air.this would have cost me 1599€ in the EU. 400+ euro more.
  • Reply 7 of 51
    richlrichl Posts: 2,213member
    Judging by how difficult it was to find an iPad 2 in Europe within the first couple of months of release, I don't think that Apple will be worrying too much.
  • Reply 8 of 51
    stelligentstelligent Posts: 2,680member
    "14,000 online consumers throughout Europe to find that between 2 and 7 percent of consumers surveyed own a tablet"



    How could they not know the exact %? Did 5% refuse to answer that question? In that case, it's just 2% - plain and simple.
  • Reply 9 of 51
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by stelligent View Post


    "14,000 online consumers throughout Europe to find that between 2 and 7 percent of consumers surveyed own a tablet"



    How could they not know the exact %? Did 5% refuse to answer that question? In that case, it's just 2% - plain and simple.



    It's by country. - from Reuters coverage of the same story (http://in.reuters.com/article/2011/0...58684520110809)



    'Between 2 percent and 7 percent of the consumers surveyed, depending on the country, said they owned a tablet, and a further 10 percent to 14 percent said they were interested in buying one.



    Spain had the highest ownership and France the lowest, while Germans were most interested in buying a tablet. In Britain, where Apple has 30 of its European stores, ownership was relatively low at 3 percent.'
  • Reply 10 of 51
    MacProMacPro Posts: 17,819member
    Quote:
    Originally Posted by Mads View Post


    The smallest iPad in US is 499,- USD

    In Denmark it's approx 735,- USD



    I'd be interested to know the details, can you break that down to how much of that extra $236 is going to Apple and how much is going else where such as taxes or whatever? Here in my city in Florida I pay 7% tax, i.e. I'd have to pay $534 not $499. That said, your extra $200 is a big difference. (all numbers rounded before the smart asses correct me)
  • Reply 11 of 51
    MacProMacPro Posts: 17,819member
    So it if the fragmented opposition to iPad would all get together and build lots of gorgeous stores filled with things people want, lower their prices and create a far better OS. Add a superb eco system like iTunes and agree to share the sales ... they may stand a chance?
  • Reply 12 of 51
    nkhmnkhm Posts: 928member
    Quote:
    Originally Posted by digitalclips View Post


    I'd be interested to know the details, can you break that down to how much of that extra $236 is going to Apple and how much is going else where such as taxes or whatever? Here in my city in Florida I pay 7% tax, i.e. I'd have to pay $534 not $499. That said, your extra $200 is a big difference. (all numbers rounded before the smart asses correct me)



    Sales tax in the UK is 20%, you also pay import duty as part of the price. it cancels out most of the difference, although prices are still slightly higher outside of the US.
  • Reply 13 of 51
    mjtomlinmjtomlin Posts: 1,791member
    Quote:
    Originally Posted by Mads View Post


    The smallest iPad in US is 499,- USD

    In Denmark it's approx 735,- USD



    Denmark's VAT tax rate is 25% isn't that included in the price?
  • Reply 14 of 51
    swissmac2swissmac2 Posts: 216member
    Price in US - $499 + tax

    Swiss Price - $677 + tax



    US Price in CHF - Fr. 374 + tax

    Actual US Price - Fr. 508 + tax



    US/CHF conversion at current FX rate of $0.75 = CHF 1.00



    Apple is ALWAYS more expensive in Europe. It also releases products here later than the US, services are usually cut down in features, Apple Stores are a rarity in the EU, iTunes stores are not cross border (Amazon is) - I could go on but I've got a life!
  • Reply 15 of 51
    imatimat Posts: 150member
    Quote:
    Originally Posted by SwissMac2 View Post


    Price in US - $499 + tax

    Swiss Price - $677 + tax



    US Price in CHF - Fr. 374 + tax

    Actual US Price - Fr. 508 + tax



    US/CHF conversion at current FX rate of $0.75 = CHF 1.00



    Apple is ALWAYS more expensive in Europe. It also releases products here later than the US, services are usually cut down in features, Apple Stores are a rarity in the EU, iTunes stores are not cross border (Amazon is) - I could go on but I've got a life!



    Right on.



    Well the swiss situation is currently beyond ridiculous, Euro is plunging, Dollar is plunging... And prices don't move a cent here.



    If Apple made the same US prices here they would increase their market share beyond what they can dream of.



    And, since all goods are made in China anyway, it's not like there's an added cost to bringing them here. Our VAT is currently 8%.
  • Reply 16 of 51
    MacProMacPro Posts: 17,819member
    Quote:
    Originally Posted by SwissMac2 View Post


    Price in US - $499 + tax

    Swiss Price - $677 + tax



    US Price in CHF - Fr. 374 + tax

    Actual US Price - Fr. 508 + tax



    US/CHF conversion at current FX rate of $0.75 = CHF 1.00



    Apple is ALWAYS more expensive in Europe. It also releases products here later than the US, services are usually cut down in features, Apple Stores are a rarity in the EU, iTunes stores are not cross border (Amazon is) - I could go on but I've got a life!



    So it is fair to assume all of Apple's overheads are far higher too then.



    Apple's iTunes store is probably not cross border because of complex licensing agreements Amazon don't have.



    I could go on but ... ;}
  • Reply 17 of 51
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by SwissMac2 View Post


    Price in US - $499 + tax

    Swiss Price - $677 + tax



    US Price in CHF - Fr. 374 + tax

    Actual US Price - Fr. 508 + tax



    US/CHF conversion at current FX rate of $0.75 = CHF 1.00



    Apple is ALWAYS more expensive in Europe. It also releases products here later than the US, services are usually cut down in features, Apple Stores are a rarity in the EU, iTunes stores are not cross border (Amazon is) - I could go on but I've got a life!



    The Swiss franc has appreciated enormously against the dollar in the last few months, Apple doesn't change local prices to match exchange rates immediately, it does so periodically - the same as every other international retailer.



    Your exchange rate is backwards, currently we are at 1USD =.74 CHF, back in March it was around .94CHF. Thus the apple price of 550 CHF has gone from $585 to $733 inclusive of tax.
  • Reply 18 of 51
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 19 of 51
    lukeilukei Posts: 326member
    Quote:
    Originally Posted by iMat View Post


    Right on.

    If Apple made the same US prices here they would increase their market share beyond what they can dream of.

    .



    What more than they have now? They'd have to do the maths on loss of profit against gain in market share by reducing margins.



    I think Apple like a bit of other sales in the market, keeps the competition commission away.



    FYI there is no import duty on computer products brought into the EEA/Swiss



    iTunes cross border issues are down in the main to the labels and their licensing arrangements
  • Reply 20 of 51
    wovelwovel Posts: 956member
    Quote:
    Originally Posted by digitalclips View Post


    I'd be interested to know the details, can you break that down to how much of that extra $236 is going to Apple and how much is going else where such as taxes or whatever? Here in my city in Florida I pay 7% tax, i.e. I'd have to pay $534 not $499. That said, your extra $200 is a big difference. (all numbers rounded before the smart asses correct me)



    The highest US Government per diem rate for meals is $71 in the US. The rate in London is $187.





    Quote:
    Originally Posted by SwissMac2 View Post


    Price in US - $499 + tax

    Swiss Price - $677 + tax



    US Price in CHF - Fr. 374 + tax

    Actual US Price - Fr. 508 + tax



    US/CHF conversion at current FX rate of $0.75 = CHF 1.00



    Apple is ALWAYS more expensive in Europe. It also releases products here later than the US, services are usually cut down in features, Apple Stores are a rarity in the EU, iTunes stores are not cross border (Amazon is) - I could go on but I've got a life!



    Geneva $178, Zurich $201...



    Quote:
    Originally Posted by digitalclips View Post


    So it is fair to assume all of Apple's overheads are far higher too then.



    Apple's iTunes store is probably not cross border because of complex licensing agreements Amazon don't have.



    I could go on but ... ;}



    Far, far higher.



    Denmark was mentioned earlier, the meals rate there is $161. The highest domestic rate in the US is $71. It is amazing how out of touch most Europeans on these forums appear, they do not understand the massive cost of living differences between their own countries and the US. Do a little traveling outside of your own little lands and you might have a new appreciation for global pricing differences...I could go on...
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