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In spite of low-end competition from the Kindle Fire (AMZN), Nook Tablet (BKS), and many other...

Tuesday, May 15, 2012, 1:19 PM ET
In spite of low-end competition from the Kindle Fire (AMZN), Nook Tablet (BKS), and many other Android-based rivals, iSuppli sees the iPad (AAPL) increasing its tablet share to 61% in 2012 from 55% in 2011. The firm, which adds its "supply-side sources" indicate a smaller iPad will be arriving, predicts overall tablet shipments will grow 85% to 126.6M, and reach 206M in 2013. IDC believes the iPad gained share in Q1, and previously forecast 106.1M 2012 tablet sales.

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mnicoletti Comments (57)

When comparing tablets, "low-end competition" is quite the oxymoron. Who would purchase a Kindle Fire (giggle) or a Nook (smirk) if they have the wherewithal to afford an iPad?* And while I don't know if the rumors of a 7" iPad are true, this data would suggest that a smaller and less expensive iPad would open up the cult of AAPL to those persons who want an iPad but cannot afford one at the current price. And, since market research has shown that people who buy one AAPL product tend to purchase more AAPL products, even if a 7" iPad has a relatively small profit margin, its value as a loss leader for the expansion of AAPL market share and as an incubator for the cult of AAPL makes it a home run.

*Note that this is just a rhetorical question.

15 May 2012, 01:36 PM Reply Like