Apple iPad On The Verge Of Losing Tablet Market Control

Recent survey shows Android tablets growing to majority

The Apple iPad is a desirable device that has set the bar very high for all the other competitors in the tablet market. There current screen resolution is what everyone else is trying to achieve. And it is because of the quality of the product, Apple has pretty much controlled the market. But there are glimpses that there is a change afoot where Apple may be losing their leadership position in the world of tablets. And it is all because of Android and the 7 inch market segment.

Based on a very recent market study by Pew Internet & American Life Project, things are changing. They were measuring ownership and usage of tablets by adults in the US. In the comparison between 2011 and 2012, there are some obvious shifts in the information. One of the startling numbers produced is that 68% of those surveyed purchased their tablet in the last year. That number tells you just how fast things are changing. And they are going to continue to change.

In the Pew Internet & American Life Project survey, the startling number is the difference in market share between 2011 and 2012. In 2011, Apple pretty much controlled the market with a share of 81% in July. That shows the power that the iPad had. Android had a 15% share and everyone else had a 4% share. The Blackberry PlayBook is lost in that 4% share. Things looked very good for Apple.

But then things seem to be looking different for the future. Amazon announced and then released their 7 inch Kindle Fire before the holidays. And the sales took off. Barnes and Noble release their Nook Tablet which has been doing a decent job with sales. All of this after the previous survey results. Now we come forward to the July 2012 results and see a shift in the share. The iPad has dropped from 81% to 52% and that does not look good for Apple retaining control. The Android tablets grew from 15% to 48% and that is likely to increase significantly with the next survey. All the other tablets, such as the Blackberry PlayBook are not even showing up in the results.

This does not look good for Apple. And to make the situation even worse for them, these results were provided before 2 key events. The first was the release of the Nexus 7 from Google. The other was the announcement of the Kindle Fire HD. Both of these tablets are going to have an impact on the market share that Apple has. And they are both a 7 inch tablet, which is smaller than the current iPad.

The only potential to slow the slide would be for Apple to release the iPad Mini, At the moment, that is only a rumored device with no confirmation from Apple. The most current rumor has Apple sending out invites on October 10th with the official announcement happening on October 17th. If the rumored pricing is correct in the range of $249 to $299, Apple could retain some of what we expect them to lose. If they hit the $200 price point, they could make a big splash in the market and take back the majority share.

All of this looks to be inevitable for Apple and even with the release of the 7.85 iPad Mini, there are just too many competitors out there for them to keep up. It is like the iPhone as compared to Android smart phones. There is just no way they can stop the growing tide from over taking them.

Whether you prefer Apple's iPad to the Android tablets, the Android tablets probably have already taken the majority share. That is unless the iPad Mini comes out as rumored.

China Smartphone Growth Faster Than Expected, Apple Slows

Expected growth happening far faster than was estimated for China.

It looks like smartphone growth in China has skyrocketed this year in China and they will soon be taking over the number 1 spot in the world. They will surpass the US in smartphone sales and ownership this year which is far faster than previously estimated to happen. In a recent report from IDC, they are talking about the rapid growth of smartphones in China and the decline of "feature" phones there as well. And in a surprising note, Apple has lost ground in China for market share which should be considered a significant change for them.

Much of this is being reported by Reuters where Apple went from a 20% market share down to a 10% market share. That is too much for Apple to ignore given the sales potential which exists in China. It appears that the higher priced Apple devices, while coveted, are just too expensive for people with all the other phones available. And those other phones come at cheaper prices and a large number of features which people want to see. Even the iPhone 5 has been copied and is on sale from Goophone with a picture above from their web site. Since the iPhone 5 is not even on sale yet, this is a problem for Apple. The Goophone is running Android and is undoubtedly far cheaper than the coming iPhone 5. This will erode their market share even more.

Apple's market share dropped to 10% from the previous 20% in the current April through June period. Apple is now in 4th place in overall market share. Leveno and ZTE top the list behind Samsung and are local companies in China. Samsung was ranked 1st in the IDC report and their market share dipped from 21 percent to 19 percent. Apple came in 4th in the recent report. Some can attribute Apple's drop due to the anticipation of the coming iPhone 5, but with the Goophone being out, that may not be the case and Apple could slip again in coming reports.

The smartphone growth in China is happening a year sooner than was expected as lower priced smart phones have entered into the market there. Given the report predictions, the US will lose it's position as the number 1 country for smartphone ownership. This is predicted to happen no later than December of this year where China will have 26.5% of the market sales, US with 17% and the UK in 3rd with 4.5%. This is not to say that the US is slowing down in smartphone sales, but that lower priced smart phones are being purchased in China to replace feature phones there. But, the US will remain behind China from that point on due to the population size differences.

With the lower priced Goophone coming out as a copy of the iPhone 5, Apple stands to lose some sales as a result. But for China, their standing in the market place for smartphones is heading upwards and soon there will be no challengers to their standing for smartphone market share.