Android tablets were once thought to be a big challenge for iPad, however, they appear to have lost their way somewhere. There are many reasons why they are having a real hard time while competing with iPad. One of the primary reasons that Apple manages to dominate the tablet market is the advantageous deals it manages to pull off from manufacturers of components. Some of the components of iPad are shared with iPhone which means that Apple manages to get hold of critical parts like processors and display at considerably lower prices than rest of the competition. The result has been the failure of Android tablets and other competitors to iPad. The new iPad will further cement Apple’s dominant position in the tablet market by extending the market share to more than 70 percent. Presently Apple occupies around 62 per cent share.
Only a year ago, more than 10 Android power tablets entered market but they have not made much impact and the launch of iPad2 was simply super hit and no other tablet could venture to create any dent in the market share of iPad. One year since the launch of some 10 Android tablets, and still no impact. A key reason for success of Apple is the aggressive pricing of iPad. Apple charges less profit margins on iPad when it sells the basic model at around $500. This is in contrast to iPhone, which is a much smaller device, where Apple charges more than $600 to phone companies per piece. Apple has maintained the original pricing even with the new iPad which features hugely popular retina display. The new retina display has simply further pushed the competition into corners.
Another advantage Apple enjoys is that it sells around one third of iPads through its own retail stores, effectively reducing the middle man margins. The result is that Apple manages to keep going with the already slim profit margins on iPad. The pricing regime of iPad has been quite interesting. As per normal practice, iPad being the first gadget of its kind, would normally have been priced higher. However, the reverse has been true in this case because the competing tablet devices from companies like Samsung and Motorola were priced higher than iPad. It is beyond doubt that Android tablets will have to come up with something extraordinary to be able to gain any ground in this market dominated by Apple’s iPad.
Image at http:[email protected]/5537116516