"This is the clearest statement Apple could have made that it is only interested in competing in the premium tablet space," Ovum analyst Jan Dawson said. "This leaves a huge chunk of the tablet market unserved by Apple while others such as Google, Amazon, and a raft of others aggressively target the sub-$400 market. This reinforces our view that Apple's share in tablets will continue to fall as Android's share rises over the coming years."
And fall it has. Apple essentially invented the modern touch-screen tablet with the first iPad in 2010. By the end of that year, it sold more than three-fourths of all tablets in the market, according to IDC. By the end of 2012, however, it sold 46 percent of tablets, and its share will drop further to 36 percent this year, the tech research firm estimates. Android, by comparison, will make up about 60 percent of all tablets in the market by the end of 2013, up dramatically from its share of 22 percent in 2010.