Apple Grabs 95% of Tablet Market as Competitors Ramp Up

[notjustjay]

You dont get it. Apple isn't really a software company. They make software simply to support and improve their hardware. They have always been about the hardware. Today, as always, Apple still sells far more computers than Microsoft. Oh, and their market cap and profits are also higher. People will buy the iPad for the "Apple experience". Putting their OS on an HP product would give buyers a hardware alternative to that experience.

Apple has got really smart over the last number of years.

Up until about a decade ago their business plan was: We'll sell our hardware (Macs) by positioning ourselves up against the competitor, who owns 95% of the current market share, but our computers will be so much better built and our software will be so much nicer to use, that everyone will switch from their Windows + PC solution to buy our software and hardware.

Which kind of worked.

Today, their plan is: We'll sell our hardware (iPods, iPhones, iPads) by positioning ourselves in nascent new markets where there is no clear single winner, and our products will be so well made and easy to use that we will arise to be a dominant player in the market. We will offer the premium experience and an opportunity for vertical integration that will also drive sales in other areas (Mac hardware, carrier subsidies, profits from App Store).

 

[mcmlxix]

Wow I got a lot of people replying to my post.

I've used one in an apple store in Minneapolis(closest one to me lol) and to me it seemed like I was on a huge ipod touch. I never knew it was actually that good. I might have to get one.

I hope you didn't go to that zoo at MOA or in one of the Dales. The new Uptown store is better. It's also great that it opend two days before the iPhone 4 launch, which means that the lines were miniscule by comparison.

 

[OllyW]

This was me as well. I just didn't understand it until I started playing with it at a Best Buy. When my netbook started falling apart I took the plunge and I'm enjoying it very much.

I'm very impressed with the iPad after having a few plays on them in the stores.

I don't see any need to buy one at this time because I'm covered by my iPhone, MBP and iMac but it's going to be interesting to see how the platform develops over the next couple of years.

 

[res1233]

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I remember the time when the Mac had almost 100% market share in the 'computers with a graphical user interface' niche. Then came Windows, and we all know where that put the Mac. And now comes Android.

Apple should be smart about this and license iOS to other tablet manufacturers. But then again, somebody in Cupertino has a huge ego and will never do it.

I'm going to just say it. That very same idea nearly destroyed them when they tried it with mac OS. They make most of their money off of hardware, with their software being what makes their hardware so great. Your idea would be just about the DUMBEST thing apple could ever do. It would destroy them, because some people would opt for that crappy replica that costs $100, just because it also runs iOS.

 

[Vulpinemac]

Microsoft would disagree with you. They've been selling tablet PCs for a decade now.

I would disagree with you: Microsoft put a desktop operating system into a tablet-form-factor machine, which is significantly different. That desktop OS has been an almost total failure for the form factor, an analysis reinforced by the fact that Apple's OS X has been used into laptop computers modified into tablets by a third-party vendor to the same minimal results. It's not the form factor that's the success, it's the OS combined with the form factor.

Maybe this will change with HP's new, smaller and cheaper tablet using Win7, but I'm not betting on it. I think Android or WP7 will prove far more popular as a non-iOS tablet than the desktop version of Win7, even with HP's own touch interface layered on top.

So far, the iPad has averaged over 1 million units per month since it first shipped; it's going to take an army of Androids or one heck of a WP7 device to slow it down.

 

[gnasher729]

didn't SJ try to drive all developers out of the Mac in favor of internally developed applications?

Not in 1984. I was there and I would remember.
Not in 1985. I was there and I would remember.
Not in 1986. ...
...
Not in 2010. I am there and I would know.

Apple never had 100% share of GUI--history points out that Windows 1.0 came out roughly 1 month before the first Mac--unless you count the Lisa which was a grossly-overpriced failure for Apple. As such, the advantage the Mac had at that specific point was its ease of use and easy graphic creation capability.

Also, 100% of a 50,000 machine market is much less than 8 million iPads sold.

 

[Vulpinemac]

well you have to remember The Tab only just really hit the market and still only has limited number of outlets but the press seems to like it. For the most part I find this article worthless and only something the fanboys will scream about. It is worthless because most of those other tablets just hit the market and still have VERY VERY limited places you can buy them from.

As for the Playbook. I would except to see the SDK later on it and RIM more than likely has not had the time to write it yet. It is not like the SDK's for there phones and the OS for their phones. Those they have most of the stuff already done for each phone and just have to load in a few things.
The playbook is using a very different CPU architecture and a radical different OS. Playbook from what I have been reading looks like the directly RIM is going to go with their phones and the phones OS. Just it is going to take a little longer before they are able to make that transition. Remember RIM does enterprise business first and in the enterprise and business world thing change a lot slower. RIM just can not make as radical changes as consumer products.

While you are quite correct in saying that the Playbook and Android tablets have very limited outlets at the moment, you missed the point that the poll didn't ask, "What did you buy", but rather, "What will you buy?" The question itself ignores the concept of where a responder might get it and simply asks what that person intends to buy when the opportunity arises. That's a huge refutation to your argument.

How about answering the question yourself? What will YOU buy?

 

[LagunaSol]

Apple should be smart about this and license iOS to other tablet manufacturers. But then again, somebody in Cupertino has a huge ego and will never do it.

 

[samcraig]

While you are quite correct in saying that the Playbook and Android tablets have very limited outlets at the moment, you missed the point that the poll didn't ask, "What did you buy", but rather, "What will you buy?" The question itself ignores the concept of where a responder might get it and simply asks what that person intends to buy when the opportunity arises. That's a huge refutation to your argument.

How about answering the question yourself? What will YOU buy?

Yeah - but you don't know how many people and how they polled them. For all we know they were outside an Apple store. Or from a list of Mac owners.

It also, as you state, asks what WILL you buy. And since they other tablets aren't really "known" yet nor some released - it's possible people's decision can change when the purchase is actually made. Again - the data provides wasn't given much context nor anything else to make it useful. My .02

 

[4D4M]

Why hasn't that guy who always says MICROSOFT IS DEAD put in an appearance yet? I would have thought this thread is ideal!

 

[Bernard SG]

well you have to remember The Tab only just really hit the market and still only has limited number of outlets but the press seems to like it. For the most part I find this article worthless and only something the fanboys will scream about. It is worthless because most of those other tablets just hit the market and still have VERY VERY limited places you can buy them from.

As for the Playbook. I would except to see the SDK later on it and RIM more than likely has not had the time to write it yet. It is not like the SDK's for there phones and the OS for their phones. Those they have most of the stuff already done for each phone and just have to load in a few things.
The playbook is using a very different CPU architecture and a radical different OS. Playbook from what I have been reading looks like the directly RIM is going to go with their phones and the phones OS. Just it is going to take a little longer before they are able to make that transition. Remember RIM does enterprise business first and in the enterprise and business world thing change a lot slower. RIM just can not make as radical changes as consumer products.

As of now, the PlayBook is not a product.

 

[HLdan]

I love my iPad but this statistic is cotton candy. Sweet to the taste but disappears quickly.

What I mean is - it's pretty meaningless. What's the competition at this point. Right now - pretty much the only TABLET computer is the iPad. Of course they're going to have dominant marketshare.

I have 100 percent of the marketshare for users named SamCraig here. Means nothing.

I look forward to seeing the pie chart a year from now.

Yes.. you figured me out HLdan - My goal was to bring down the iPad's glory. Seriously? No. And you brought up competition. Another poster brought up MS. I responded to you both as opposed to double posting. Stand by what you said all you want. I'll do the same.

Sam, your argument has just as much right to be here as the rest of ours, but understand something, when somebody quotes you, please don't make it about them only. You're saying I brought up the competition, not true, YOU DID. So coming back at me and saying I started this competition argument is ridiculous. Again, the iPad was the last to enter the Tablet market, if those other companies couldn't make it before Apple came along, don't expect your pie chart to change much in the competition's favor as you are so looking forward to.

 

[paul4339]

keep in mind that:
1. the survey is focused on "target audience of professionals and early adopters"

2. it surveys on what the customer thinks they will buy
- the customer probably hasn't even tried out a Playbook or Galaxy tab
- the survey was taken throughout October; the prices of the products aren't even widely published.

the general public doesn't always shop the same way as professional/early adopters, and is usually more price sensitive. And looking at the marketing/ads push from apple I would 'guess' that the iPad will do very well (90%) in the next few months. Of course things could change - companies may be saving all of their ad dollars for holiday season (my _guess_ is that it won't make a diff for the next few months, though)

P.

 

[JAT]

Apple should be smart about this and license iOS to other tablet manufacturers. But then again, somebody in Cupertino has a huge ego and will never do it.

Why? So the next gen can be like Win95?

 

[res1233]

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Apple should be smart about this and license iOS to other tablet manufacturers. But then again, somebody in Cupertino has a huge ego and will never do it.

Why? So the next gen can be like Win95?

I think it's safe to say that winni has absolutely no clue how apple makes their money. He seems to be under the false assumption that apple makes more money on their software than they do on their hardware. I'm not sure how he reached such a conclusion but it's far from the truth.

 

[samcraig]

What's completely flawed about your argument is that you somehow forgot that the iPad is the competition for the "other" existing tablets and in fact the iPad is the last to come to the market so if those "other" tablets couldn't make it in the first place you can forget about them stealing much of the iPad's market unless they steal the iPad's functionality and at that point they'll be nothing more than a worthless clone that's "LIKE" an iPad.

Sam, your argument has just as much right to be here as the rest of ours, but understand something, when somebody quotes you, please don't make it about them only. You're saying I brought up the competition, not true, YOU DID. So coming back at me and saying I started this competition argument is ridiculous. Again, the iPad was the last to enter the Tablet market, if those other companies couldn't make it before Apple came along, don't expect your pie chart to change much in the competition's favor as you are so looking forward to.

I guess we're both ridiculous. I stated my opinion. You countered. It takes two to tango, Dan.

And please state where I give any indication over pleasure or not regarding that statistic. I just said it's meaningless. You're the one attaching emotion to it. I have none. I don't care either way. I do care about the uselessness about the statistic though as it says nothing.

 

[Vulpinemac]

As of now, the PlayBook is not a product.

Agreed, and yet it did pull roughly 8% of the poll. That means enough people knew about it to create a statistically significant number. This seems to refute the arguments that not enough people know about the competition to make a decision.

 

[LagunaSol]

Yeah - but you don't know how many people and how they polled them. For all we know they were outside an Apple store. Or from a list of Mac owners.

This wasn't a classic Microsoft-sponsored survey with blatantly-skewed results. It was conducted by a research survey firm with no ties to Apple. I'm sure they know a bit about effective survey methodologies, which of course would not include standing outside an Apple store to ask about iPad purchase plans.

 

[bella92108]

But just wait until next quarter when of necessity their market share will rise while, also of necessity, iPad market share will fall.

Check your math, gotta adjust your statement....

iPad market share doesn't have to fall. Presently less than 10% of Americans have tablets. If we represent that portion of people at 1,000,000, and Apple has 80%, that's 800,000 units. If the percentage of the market share increases to 10,000,000, Apple can still let Android sell 2,000,000 units, but that doesn't mean they're losing market share, because at 8,000,000 is still 80% market share.

Where apple will fall is staying relevant. Unless the 2011 iPad has an SD reader built in, camera, etc, it WILL lose some market share to people who feel those are "current" features. Either way, it's going to be an exciting 2011 with all the competition.

 

[samcraig]

This wasn't a classic Microsoft-sponsored survey with blatantly-skewed results. It was conducted by a research survey firm with no ties to Apple. I'm sure they know a bit about effective survey methodologies, which of course would not include standing outside an Apple store to ask about iPad purchase plans.

I love when people are SO literal. Of course it wasn't outside an Apple store. My point is that there's no information about the sample size, how/when/where the survey was conducted.

I guess we (err I) will have to place eyerolls, winks and other such things when I state something clearly "ridiculous"

 

[res1233]

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Yeah - but you don't know how many people and how they polled them. For all we know they were outside an Apple store. Or from a list of Mac owners.

This wasn't a classic Microsoft-sponsored survey with blatantly-skewed results. It was conducted by a research survey firm with no ties to Apple. I'm sure they know a bit about effective survey methodologies, which of course would not include standing outside an Apple store to ask about iPad purchase plans.

He does have a point... We don't KNOW how they got their results, but how many surveys have a detailed report on where they got their results? If you ask me, take any survey with a grain of salt. Surveys are often reliable and close to reality, but they're just as often not.

 

[bella92108]

I love when people are SO literal. Of course it wasn't outside an Apple store. My point is that there's no information about the sample size, how/when/where the survey was conducted.

I guess we (err I) will have to place eyerolls, winks and other such things when I state something clearly "ridiculous"

The one I love is how the insurance agencies say:

"The average customer switching to (Geico, Progressive, Allstate, _____) saved $150 on their car insurance"

... yeah, because the ones who quoted and it came back not to save them didn't switch. I'd believe 99.999% of people who SWITCH save money, or why would they switch? People are such suckers for statistics. Most americans are sheep when it comes to advertising.

99% organic... wow, that's amazing... (so 1% of the days it was treated with pesticides) which means it's not organic, lol. But you still pay 2x the price for it! Bahhhhhhhh

 

[LagunaSol]

He does have a point... We don't KNOW how they got their results, but how many surveys have a detailed report on where they got their results? If you ask me, take any survey with a grain of salt. Surveys are often reliable and close to reality, but they're just as often not.

For a research report that costs $1,500 to view in its entirety, I feel it safe to assume they didn't employ nonsensical survey methods like samcraig implied (and afterwards tried to paint as tongue-in-cheek).

You could always purchase the report and let the rest of us know the details of their survey methodology.

 

[res1233]

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He does have a point... We don't KNOW how they got their results, but how many surveys have a detailed report on where they got their results? If you ask me, take any survey with a grain of salt. Surveys are often reliable and close to reality, but they're just as often not.

For a research report that costs $1,500 to view in its entirety, I feel it safe to assume they didn't employ nonsensical survey methods like samcraig implied (and afterwards tried to paint as tongue-in-cheek).

You could always purchase the report and let the rest of us know the details of their survey methodology.

Eh, no thx I pretty much just look at surveys and go "okay, that's nice. Now let's see how things turn out." I tend to shy away from using surveys as an actual data source just because it's just about as easy for them to be misleading as it is for them to be wrong. Look at the facts. Many people most likely haven't heard of these new tablets yet, or don't know much about them. If you ask me, it's a little early to be making a tablet-related survey in general.

 

[bella92108]

This just in... CNN survey projects the Democrats will retain control of the house.

This just in... Fox News survey projects the Republicans will gain control of the house.


A survey can be made to reflect whatever you want.