Low-End Tablets Will Have 60% In Market Share By 2012, Say Analysts


24.03.2012

Low-End Tablets Will Have 60% In Market Share By 2012, Say Analysts

The new iPad was introduced a couple of weeks ago in San Francisco and it officially hit the market on March 16th. The price of the WiFi-only model of the new iOS tablet with 16 GB of internal storage is $499 and this is the cheapest model in the range.

The new iPad and iPad 2 WiFi 16 GB (which has a starting price of $399) are putting a lot of pressure on the high-end Android tablets. But Amazon managed to impress everyone with their Kindle Fire that has a price of $199. Even though the online retailer looses $7 for each tablet they sell, they will make a fortune out of the services it offers at charge.

ABI Research conducted a study which shows that by 2016 the low-cost tablets will control 60% of the tablet market. The researchers have filed all the tablets that cost $400 or less in the low-end segment. For the time being the tablet market leader is iPad, which has over 50% of the market.

More than 200 tablets were launched over the past years, but Apple needed just one to control more than half of the market. ABI Research says that the low-cost tablets will have a rapid and significant growth, especially on the emergent markets like China and India.

I personally find this an optimistic forecast, but obtainable if the popular brands are getting involved on this particular segment. It is rumored that the search engine giant, Google, is working on a 7-inch tablet which features a dual-core chipset and has a price between $149 – $249, unofficially dubbed Google Nexus Tablet.

On the other hand just imagine how popular an 7-inch iPad would become. Rumor has it that Apple will launch such a device in the next one or two years, in order to be able to withstand Android’s heavy attacks. Anyway this study is not about which brand will control the market by 2016, but about what tablet class will have the supremacy in the next four years and if both Apple and Google launch cheap tablets, I am sure that the force would be balanced towards the low-end segment.

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