Apple iPad to gain market share in 2012 at expense of Android
Market research firm IDC on Thursday released an updated worldwide tablet sales forecast and expects Apple to gain more ground over Android devices in 2012 amid an overall surge for the sector.
According to the latest IDC Worldwide Quarterly Media Tablet and eReader Tracker Apple's iPad will get back some of the market share it lost to Android tablets in 2011 and is forecast to take over 62 percent of worldwide sales.
The bump is part of an overall rise in tablet sales for 2012 which IDC estimates to reach 107.4 million units, up from 69.6 million in 2011 and just 19.4 million in 2010.
"Demand for media tablets remains robust, and we see an increasing interest in the category from the commercial side," said Tom Mainelli, research director of IDC's Mobile Connected Devices unit. "We expect pending new products from major players, increasingly affordable mainstream devices, and a huge marketing blitz from Microsoft around Windows 8 to drive increased consumer interest in the category through the end of the year."
Apple's share of the tablet market is seen as reaching 69.8 million units which accounts for 62.5 percent of global sales. The iPad dominated in 2011 with a 58.2 percent market share but that number was down from the device's launch year which saw iOS tablet sales take an unprecedented 76.2 percent piece of the pie. The growth will eat away at Android market share that is pegged to fall 2.3 percent from the 38.8 percent seen in 2011.
"After a very strong launch of new products in March, Apple's iPad shows few signs of slowing down," Mainelli said. "The addition of the Retina Display and 4G capabilities to the third-generation products clearly enticed many current owners to upgrade. And Apple's decision to keep two iPad 2s in the market at lower prices - moving the entry-level price down to $399 - seems to be paying off as well.
Mainelli adds that Apple's market presence would be further strengthened if the company releases a rumored 7-inch iPad model as the presumedly low entry price will possibly break into untapped demographics. The company is said to be readying such a device for launch sometime this fall.
If and when a smaller iPad makes a debut, it will have to contend not only with Android tablets but also devices running Microsoft's Windows 8 and Windows RT. While the IDC does not currently include the two new operating systems as part of its forecast, the firm will be adding them next quarter as devices hit store shelves. Although the market share is not expected to be high, it should be noted that the Windows-based tablets do appear in IDC's PC market tracker.
The tablet market is expected to grow to 222.1 million units by 2016, offering plenty of room for new competition. What remains to be seen is whether Android can wrest away enough market share from iOS to even the playing field or if Microsoft's new Windows devices will be the one to pick up the scraps.
According to the latest IDC Worldwide Quarterly Media Tablet and eReader Tracker Apple's iPad will get back some of the market share it lost to Android tablets in 2011 and is forecast to take over 62 percent of worldwide sales.
The bump is part of an overall rise in tablet sales for 2012 which IDC estimates to reach 107.4 million units, up from 69.6 million in 2011 and just 19.4 million in 2010.
"Demand for media tablets remains robust, and we see an increasing interest in the category from the commercial side," said Tom Mainelli, research director of IDC's Mobile Connected Devices unit. "We expect pending new products from major players, increasingly affordable mainstream devices, and a huge marketing blitz from Microsoft around Windows 8 to drive increased consumer interest in the category through the end of the year."
Chart: Worldwide Media Tablet Shipments Split by OSHistorical and Forecast* 2010 - 2016 (Units in Millions)Description: Tags: Author: IDCcharts powered by iCharts
Apple's share of the tablet market is seen as reaching 69.8 million units which accounts for 62.5 percent of global sales. The iPad dominated in 2011 with a 58.2 percent market share but that number was down from the device's launch year which saw iOS tablet sales take an unprecedented 76.2 percent piece of the pie. The growth will eat away at Android market share that is pegged to fall 2.3 percent from the 38.8 percent seen in 2011.
"After a very strong launch of new products in March, Apple's iPad shows few signs of slowing down," Mainelli said. "The addition of the Retina Display and 4G capabilities to the third-generation products clearly enticed many current owners to upgrade. And Apple's decision to keep two iPad 2s in the market at lower prices - moving the entry-level price down to $399 - seems to be paying off as well.
Mainelli adds that Apple's market presence would be further strengthened if the company releases a rumored 7-inch iPad model as the presumedly low entry price will possibly break into untapped demographics. The company is said to be readying such a device for launch sometime this fall.
If and when a smaller iPad makes a debut, it will have to contend not only with Android tablets but also devices running Microsoft's Windows 8 and Windows RT. While the IDC does not currently include the two new operating systems as part of its forecast, the firm will be adding them next quarter as devices hit store shelves. Although the market share is not expected to be high, it should be noted that the Windows-based tablets do appear in IDC's PC market tracker.
The tablet market is expected to grow to 222.1 million units by 2016, offering plenty of room for new competition. What remains to be seen is whether Android can wrest away enough market share from iOS to even the playing field or if Microsoft's new Windows devices will be the one to pick up the scraps.
Comments
Quote:
Originally Posted by AppleInsider
Apple's share of the tablet market is seen as reaching 69.8 million units which accounts for 62.5 percent of global sales. The iPad dominated in 2011 with a 58.2 percent market share
Impressive as this is, I think that apple is more impressed with the profits generated. Market share is fine, but profits are finer. Apple doesn't really care so much about market share.
And besides, there really is no tablet market. There only an iPad market. No other tablet even comes close.
Quote:
Originally Posted by JerrySwitched26
Impressive as this is, I think that apple is more impressed with the profits generated. Market share is fine, but profits are finer. Apple doesn't really care so much about market share.
And besides, there really is no tablet market. There only an iPad market. No other tablet even comes close.
I agree that there is no market except an iPad market, but disagree that Apple doesn't care about market share. They will not sacrifice profits, build quality, user experience, etc. for the pursuit of market share, but they are always quick to point out the market share when it leans in their favor. With iPods, iPads, premium computers ($1000+), they are more than willing to tell the world they dominate market share.
Isn't IDC the "research" company that always kisses Ballmer's butt?
I have to say that 107.4 million units of sales in 2013 is a whopping big number of Media Tablets and eReaders. Doesn't that surpass projected PC sales?
I'm a long time fanboi and unapologetic Apple supporter, so it warms my cockles to recall how Ballmer cackled about the iPhone's entry into the market and how he dismissed the iPad as "not a real computer." It's been a long time since his schweaty butt has last hopped about on stage.
PC sales are roughly 360 million a year
If Apple was to get to 20% share, it would sell 75 million units, vs. 25 million today. Huge upside
Quote:
Originally Posted by AppleInsider
Market research firm IDC on Thursday released an updated worldwide tablet sales forecast and expects Apple to gain more ground over Android devices in 2012 amid an overall surge for the sector.
According to the latest IDC Worldwide Quarterly Media Tablet and eReader Tracker Apple's iPad will get back some of the market share it lost to Android tablets in 2011 and is forecast to take over 62 percent of worldwide sales.
The bump is part of an overall rise in tablet sales for 2012 which IDC estimates to reach 107.4 million units, up from 69.6 million in 2011 and just 19.4 million in 2010.
"Demand for media tablets remains robust, and we see an increasing interest in the category from the commercial side," said Tom Mainelli, research director of IDC's Mobile Connected Devices unit. "We expect pending new products from major players, increasingly affordable mainstream devices, and a huge marketing blitz from Microsoft around Windows 8 to drive increased consumer interest in the category through the end of the year."
Apple will be overjoyed with 62.5% of a much larger 107.4 million unit 2012 market than when it had a 58.2% of a smaller 69.6 million unit 2011 market. Especially since the 2011 market was flooded with below cost RIM Playbooks and H.P. WebOS tablets. Not to forget the Xoom and some other failed tablet attempts to introduce an iPad killer.
Most significantly I wouldn't expect Apple's margins to suffer as this cat fight heats up.
When people say "Apple doesn't care about marketshare" there is a silent qualifier that should always be applied: Apple doesn't care about marketshare, if it comes at the expense of profits.
Market share is a comparison of ALL companies in a particular market... a ranking if you will.
I'm sure Apple would love to be on the top of every possible list. But you're right... it would be silly to start slashing prices and sacrificing everything they stand for simply to get ranked higher on a list.
Those charts are totally bogus. iOS has 95% marketshare based on logging statistics of tablets in use.
In all fairness if someone wants to make a case as to why non-iPad tablets are not registering on these tracking websites I'm all ears (or eyes or gooey user interface or whatever) but so far the web and app traffic stats seem to be inline with my anecdotal accounts of what i see in the real world.
Quote:
Originally Posted by BwhAgain
I still am not convinced they would release the 7 inch. I personally own Nook color and Blackberry playbook, they have been collecting dust, no one in the family uses them except myself, mainly for development in the past. On the work I used Samsung 7 inch last year, it was crappy. Overall 7 inch has been a poor tweener experience. Now Kindle fire flopped, and ipad 2 is just 399, Apple will feel less compelled to compete in the 7 inch space.
I agree, its probably not the best idea either. The way samsung and motorola are going are going it won't compete with mini tabs, its will compete with massive phones.
So we get to see Mr. Monkey butt.
Quote:
Originally Posted by SolipsismX
58.2% in 2011? Barely 1 out of 2 tablets were from Apple. Bullshit!
When people say "Apple doesn't care about marketshare" there is a silent qualifier that should always be applied: Apple doesn't care about marketshare, if it comes at the expense of profits.
I think both Tim and Steve said it... they aren't interested in going after market share, they just make the best products they can. If they happen to grab a huge chunk, why not brag about it? It's a double-whammy to competitors who flood the market with low margin devices no one buys or wants, yet are counted as market share.
Real world usage statistics always show the iPad way, way ahead, usually some 90% or higher, whether it's web usage, ad stats, enterprise deployment, etc. Like the iPod, the iPad is in a class all its own and will remain so until something else comes along and hopefully Apple again has the foresight to make the transition.
Ok, here is one sample, in my household there are 3 iPads, 1 nook color and 1 BB playbook. So the market share of Apple is 60%. However the Internet traffic is like 99% iPad. Last year I took commuter trains for several month(before kindle fire's release), I saw mostly iPads, but often there were a couple nook colors in my car. I only saw a Samsung 7 inch once. The market share of iPad in the trains was perhaps 60-70%. If you count e-ink readers then more like 40%.
Quote:
Originally Posted by SolipsismX
58.2% in 2011? Barely 1 out of 2 tablets were from Apple. Bullshit!
These kinds of reports are always suspect. If you dig into things you find out that they base their numbers on a survey of some puny group like 500 owners Or it's based on the hits on some unheard of website or using the 25th ranked web ad company or such.
Often the numbers are based on web related stuff which could be missing a ton of units since there could be folks that have their tablets for other things.
The fact that Nook and Blackberry products are crap doesn't mean that Apple can't make a good 7" tablet.
From everything I have read, it would appear that Android's share of sales to end users is substantially less than 35% to 40% of the so-called "tablet" market. It may be that Android tablet shipments from manufacturers to retailers have comprised 35% to 40% of total shipments, but that is not a meaningful measure of market penetration. I don't believe IDC's numbers.
(My previous post duplicated by mistake).
(My previous post duplicated by mistake).