Tablet computers: iPad 5 under pressure, Google Nexus 7 getting an advantage off the bat?
UPDATED: Surveys from IDC suggests that Apple’s iPad is losing market share. That’s right, the most lucrative business of the Cupertino, California-based phone and PC maker is on the verge of losing its business to Android devices or tablet computers with fewer tablet-optimized apps. What’s wrong with the iPad? Why is it that customers are choosing Android and not Apple’s shiny toy?
Well, one of the reasons why Android tablet computers are selling better is because the market is on the lower price point. The best example would be the Google Nexus 7 2013 model with 1080p display, quad-core processor, 5-megapixel back-facing camera and the latest version of Android Jelly Bean pre-installed out of the box. The new tablet made by ASUS but sporting Google’s branding is just $229 on the Google Play Store ($269 for the 32GB model), and that’s $100 cheaper than its biggest small tablet PC rival, the Apple iPad Mini WiFi only model with 16GB of on-board storage. It’s safe to say that customers will pick the Nexus 7 because it is cheaper — and it gives the search giant’s platform an edge because the product is attractive from the low-end to high-end markets.
According to IDC, ASUS bagged 120.3 percent year-over-year growth mainly after it offered the first-generation Nexus 7, and with the help of the new Nexus 7, it is expected that Taiwan-based ASUS will grab bigger share in the next coming months. Samsung with its Galaxy Tab lineup scored the biggest jump based on actual sales though Lenovo boasted the largest year-over-year growth of 313.9 percent.
And how about Apple?
Well, the iPad lineup took a dive with 14.1 percent decline — and the question remains, can the iPad 5 take back the market share? Keep in mind that Apple’s regular-sized iPads, including the rumored iPad 5, is currently priced $499, and that is for the cheapest model only, the most expensive iPad with Long Term Evolution is on the $929 price point. For comparison, the new Nexus 7 with LTE is priced $349.
IDC’s latest data clearly shows the changing landscape of the tablet PC market business, but despite the market share decline, Apple still generate the biggest tablet computer revenue because the company generates profit from sales, as well as sales from apps and other content while other manufacturers like Samsung and ASUS are stuck with units sales only and Google is the only company that generates revenue from apps and other media via the Google Play Store.
Retina iPad Mini 2 joining Apple “cover” event with iPad 5October 19th, 2013