The imminent arrival of the iPad 2 could make it even more difficult for would-be competitors in the ever growing tablet market, according to JP Morgan research analyst, Mark Moskowitz. Companies such as Motorola and HP are going all out on tablets this year, but could be left with plenty of surplus stock lying around if not careful.
Moskowitz predicts that Apple’s rivals could build up to 65 million tablet devices in 2011, creating “increasing risk of bubble burst” later in the year, as up to 51% of competing tablets could remain unsold, partly due to advancements made by Apple with the iPad 2.
Apple set the benchmark for tablet devices, for price, style and functionality, when they launched the iPad. It’s fair to say they’ve done the same again with the iPad 2, prompting competitors to rethink their existing plans altogether. Moskowitz echoes these sentiments:
“In our view, the technical and form factor improvements of the iPad 2 stand to make it tougher for the first generation of competitive offerings to play catch-up, meaning actual shipments could fall well short of plan”
“Aside from Motorola’s Xoom and HP’s TouchPad, the competitive offerings appear to be light on attraction, in our view”
He went on to say that consumers seeking out an alternative to the iPad may be “underwhelmed” with the alternatives, leading him to say that JP Morgan’s initial forecast of a 68% tablet market share for Apple in 2011 “may be conservative.”
I can see where Moskowitz is coming from. There is an abundance of tablets hitting the market every month. I frequently come across devices I haven’t even heard of, let alone plan to buy. However, I sincerely hope that the iPad is met with stiff competition this year. It will not only lead to consumers having more options, but it will also drive innovation throughout the tablet market as a whole, leaving one winner — us.
Article Via Apple Insider
Photo Credit: Organic Pix
