New Momentum on the Tablet Market

The focus of the computer market has shifted perceptibly over the last years. Mobility is the new keyword, which is changing the landscape of the computer sector. It has already been characterised by terms such as mobile commerce or mobile payment. Considering the increasingly strong market penetration of tablet computers and Smartphones, as well as the persistent popularity of app stores, the dynamic development of the sector is not very surprising.

The market for tablet computers keeps growing rapidly. Gartner Analysten predict that more than 60 million devices will be sold in 2011, which would mean an increase of approximately 260% compared to 2010. This strong growth in sold tablets and the resulting expansion of the market will last until 2015 according to Gartner. So far, the economic potential of tablet PCs has been opened up almost entirely by Apple’s iPad. The aggressive advance of competitors such as Google and Amazon, however, could change that soon.

Prognosis predicts that Apple will remain market leader

Over the last years, there have been countless attempts to challenge the iPAd for the tablet throne. Most of those attempts, such as HP’s WebOS tablets, Fusion Garage’s JooJoo, or various other tablets with a Windows operating system hardly seem worth mentioning when considering the tablet market.

Solely tablet PCs, which use Google’s Android as operating system, were able to develop into a first serious competition for Apple’s iPad. Strategy Analytics estimated Android’s market share among the different tablet operating systems to approx. 30% in the second quarter of 2011. However, this number is still trumped by the more than 60% that Apple’s iOS reached according to the analyses. Gartner’s estimations for the entire year of 2011, too, confirm the dominance of the iPad with an estimated market share of 73.4%.

However, Apple’s success cannot be attributed to the consistent superiority of the iPad or its product characteristics alone. Apart from excellently coordinated marketing schemes and the truly innovative features of the device, the Californian electronics giant has managed to develop an extensive overall package (with iTunes and App Store) that binds the user permanently to its own product line.

The competition betting on Android on the other hand works with a more open system and therefore doesn’t have a central content offer. Many hardware providers, such as HTC, Samsung and Motorola offer Android tablets, whereby the Samsungs Galaxy tab is the biggest competition for the iPad.

Amazon’s new Walled Garden

The soon available and by TechCrunch already highly recommended Kindle Fire by Amazon could now mean a breath of fresh air in the tablet sector. Its offer of different media contents, which can be purchased and used via Amazon, is what differentiates it from other iPad competitors. The mail order business giant from Seattle follows a strategy similar to Apple’s. Some things however are different.

Unlike Apple, Amazon did not develop its closed system in order to market its devices. The Kindle Fire is merely a means to make the system that was established by Amazon even more profitable. The announced price of 200 US dollars shows that Amazon won’t primarily profit from the sale of its new tablet. According to experts, Amazon even accepts a loss per sold tablet and focuses on the revenue generated by the online purchases via the device instead. The purchase of the Kindle Fire, whose features are relatively limited, compared to the iPad, is only recommendable if you intend to fill it with the content, which is being provided by Amazon. This includes e-books, magazines, newspapers, mp3s, as well as (in the USA) movies and TV series.

The balance of power will shift further

If this development of the sector is not interesting and dynamic enough for you, you can always look into the increasing patent disputes, which already involve more than just Apple and Samsung. The two corporations are now battling each other in legal matters in nine countries. Additionally, there is the announced Windows 8, which will focus on touch display operation more than its predecessors, as well as Fusion Garage’s second attempt to conquer the tablet market with its Grid10.

The potential of the tablet market remains huge. Experts predict further growth until at least 2015. After Android was able to establish itself increasingly over the last years, Amazon now enters the market as the most promising iPad competitor so far. It will be interesting to see how Apple will react in this new Post-Steve-Jobs era and how the balance of power will develop.

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One Response to New Momentum on the Tablet Market

  1. [...] and the sector in general. The market penetration of smart phones is higher than ever before and the tablet market is also developing at an extreme pace. iOS, Android, Blackberry and Windows Phone are the most important systems for  app sales. A [...]

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