Android Tablet Shipments Predicted to Surpass iPad Shipments in 2013
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Posted March 12, 2013 at 9:30pm by iClarified
Android tablets will expand their share of the market in 2013 surpassing the iPad, according to a new IDC report.
A surge of smaller, cheaper tablets has led IDC to increase tablet shipment forecasts for 2013 to 190.9 million from 172.4 million units. Tablet shipments are now expected reach over 350 million by the end of 2017.
"One in every two tablets shipped this quarter was below 8 inches in screen size. And in terms of shipments, we expect smaller tablets to continue growing in 2013 and beyond" said Jitesh Ubrani, Research Analyst for IDC's Tablet Tracker. "Vendors are moving quickly to compete in this space as consumers realize that these small devices are often more ideal than larger tablets for their daily consumption habits."
Notably, Android and Microsoft are expected to increase in tablet market share at the expense of Apple.
Android-based tablets expanded their share of the market notably in 2012, and IDC expects that trend to continue in 2013. Android's share of the market is forecast to reach a peak of 48.8% in 2013 compared to 41.5% in IDC's previous forecast. Android's gains come at the expense of Apple's iOS, which is expected to slip from 51% of the market in 2012 to 46% in 2013. Longer term, both iOS and Android will eventually relinquish some market share to Windows-based tablets, with Windows 8 predicted to grow from 1% of the market in 2012 to 7.4% in 2017. IDC expects Windows RT growth to remain below 3% during the forecast period.
"Microsoft's decision to push two different tablet operating systems, Windows 8 and Windows RT, has yielded poor results in the market so far," said Tom Mainelli, Research Director, Tablets. "Consumers aren't buying Windows RT's value proposition, and long term we think Microsoft and its partners would be better served by focusing their attention on improving Windows 8. Such a focus could drive better share growth in the tablet category down the road."
Due to the increase in tablet popularity, IDC reduced its forecast for eReaders by an average of 14% between 2013 and 2016. IDC believes eReader shipments peaked in 2011 at 26.4 million units. After declining to 18.2 million units in 2012, the category is expected to grow only modestly in 2013 and 2014, before it begins a gradual and permanent decline beginning in 2015.
Google's communist act is failing miserably. Samsung is taking almost all profits leaving Google and other Android manufacturer's almost nothing.
Moreover, Windows 8 tablet market share will surpass Android tablets very soon according to the IDC's estimate. The IDC's market share estimate is based on number of units. Windows 8 tablets are more expensive now, so it will sell fewer for now. But low cost models will come out soon. On the other hand, Android is going after the lower and lower end market at cheaper and cheaper prices.
In terms of market share based on revenue, Microsoft's Surface is selling at $999, or $1140 plus the touch cover, that's about 5 times of 7" Android tablets. Revenue-wise, Microsoft only needs 1/5 of Android's market share to beat all Android manufacturers combined. Moreover, Surface has a gross margin of 45%, vs. cheap Android devices at less than 20% of gross margin, in terms of gross profit, Microsoft makes 11 times more profit selling one Surface Pro than Android vendors selling one Android tablet!
And price-wise, Dell, Asus, HP and Lenovo are offering lower end Win 8 tablets at about $399 to $499, which is very competitive to iPad and 10" Android tablets. Lastly, don't forget that Microsoft receives $5-$10 of royalty for each Androud device sold.
Android and Windows is quickly moving towards owning most of the market share going forward. History just repeating itself from the 1990's era onward. Apple could have done so much better but like so many ill-festered businesses, Apple got stupid, greedy and arrogant and tried to close the market to every competitor via lawsuits. Why Apple? Why have you taken the path of the "stupid and greedy" again? Why Apple?