Report says Apple iPad 2 sales missed company's expectation for Q3
A chart that accompanied the story shows that the entire tablet market has been experiencing a slowdown in sequential growth. From a 60.9% gain in tablets shipped from Q1 to Q2 this year, the estimated 18.7 million in total tablet sales world wide in the third quarter represents a 27.5% improvement in shipments from the previous three month period. To show how the Apple iPad 2 dominates this market, removing sales of Apple's tablet results in only a 10.1% gain in estimated sequential sales for the third quarter.
The tablet market might get a shot in the arm during the fourth quarter when the budget priced Amazon Kindle Fire gets launched. Set to be released on November 15th for $199.99, the Kindlle Fire makes extensive use of Amazon sold apps. content and cloud services.
1. SuperAndroidEvo (Posts: 3515; Member since: 15 Apr 2011)
The non iPad tablets are gaining steam. The Kindle Fire & the Android ICS quad-core tablets will make a huge push in 2012. Let's not forget Windows 8 tablets in 2012 as well.
17. ardent1 (Posts: 1983; Member since: 16 Apr 2011)
Don't forget the android device fire sales: Acer cut their prices, Vizio cut their prices, Motorola cut their prices, HTC cut their prices, etc.
It's not hard to sell android tablets when they are being sold at or under costs. Last time I checked, the Vizio 8" tablet was going for $234 at Costco.
2. arcq12 (Posts: 733; Member since: 13 Oct 2011)
I can see that other tablets will gain more market share by 2012 but iPad 3 will still dominate. I'll buy the iPad 3 once it's released. =)
4. arcq12 (Posts: 733; Member since: 13 Oct 2011)
the reason why is because tablets nowadays are mostly used as toys. iPad has the most games and apps that are optimized for it. and more people likes the iOS ecosystem better.
i prefer the Android for my phone though i'd like to have the iPad 3 for my games and stuff..
9. Commentator (Posts: 2183; Member since: 16 Aug 2011)
Interesting take. I actually see it the other way around. As far as phones go, I'm relatively indifferent to OS choice. On tablets, though, I prefer Android by far simply because of it's much greater potential, i.e. full USB support and productivity (especially with the ASUS Transformer with its 2 USB ports + keyboard). I agree with you though that tablets are much more toys than productivity devices, which will probably change once Windows 8 comes on the scene.
10. arcq12 (Posts: 733; Member since: 13 Oct 2011)
i agree. Windows 8 tablets have a very bright future. But as I've said, iPad 3 will still dominate 2012.
15. SuperEd (Posts: 112; Member since: 18 Oct 2011)
Agree that iOS will dominate for a couple years, but once W8 is unleashed, say bye bye to the iOS as it will turn to Apple Sauce!
12. Pdubb (Posts: 236; Member since: 08 Aug 2011)
Sight, unseen you're gonna get the iPad3 not knowing anything about it? What if it's just a small upgrade of the iPad2 will you still get it? Just curious!
13. arcq12 (Posts: 733; Member since: 13 Oct 2011)
don't care about how much update it gets from the previous version because it's gonna be my first iPad.. never had previous versions..
3. ryq24 (Posts: 442; Member since: 17 Oct 2011)
ipad is too expensive just like iphone, so it is natural that it will start to lose market share as more brand enter the tablet market at cheaper price.
5. ivanko34 (Posts: 617; Member since: 04 Sep 2011)
you are right
that's why apple wants to shut down competition
18. ardent1 (Posts: 1983; Member since: 16 Apr 2011)
It's more like the competition is shutting itself down. The android OEMs are learning the hard way it's tough to compete against Apple in the 10" tablet marktet. Put it this way, if Apple could sell a reburished iPad for $299, it's just too hard to compete.
The parts and labor for a 10" device is about $260 to $300, and once you add 25% for the gross margin mark-up, and say a 15% brick and mortar retailer mark-up, that android device is no longer price competitive.
6. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
I'm thinking the iPad can do to the tablet market what the iPod did to the music player.
As I've said there is no tablet market, only an iPad market.
8. arcq12 (Posts: 733; Member since: 13 Oct 2011)
course there is, doesnt mean that the iPad leads the Tablet Market, you will start calling it iPad market.
what about the smartphone market? Android leads right? should we call it Android Market? =p
11. Immolate (Posts: 249; Member since: 17 Jun 2011)
The first crack in the iPad's armor. I expect the drama to be analogous to the smartphone market, for much the same reasons. People crave the new, the different, the unique. They like to buck the trend and go their own way. The plethora of Android tablets out there mean that, whatever weakness iPad has, Android will exploit. This constant drumbeat of alternatives, engineered to compare favorably to the iPad in one or more ways, will continue to chip away at Apple's behemoth until the dam breaks and Apple becomes a niche player. Of course it will be a significant and lucrative niche, so Appleseeds have nothing to complain about.
14. Stuntman (Posts: 669; Member since: 01 Aug 2011)
If 13 million failed to meet expectations, what exactly are the expectations? At least provide some complete information. For all I know, the expectations could have been 26 million units in which case Apple only sold half of what was expected.
19. roscuthiii (Posts: 1717; Member since: 18 Jul 2010)
It's also being reported that Apple missed the expectations of Wall St on revenue as a whole.