Android poised to overtake iPad in tablet space

Saturday, 1 June 2013

Android poised to overtake iPad in tablet space

It's the event that most industry-watchers thought would never happen: the Android ecosystem is poised to overtake Apple iOS. And going forward, the Apple iPad mini is likely to dominate iPad sales.

While Apple has been able to maintain its tablet lead by delivering a quality experience at a premium price, the iPad maker exited the first calendar quarter of 2013 with only a 50% share of all tablet shipments, according to market intelligence firm ABI Research.

"It's inevitable that Android tablets will overtake iOS-powered slates, though we see no single vendor challenging Apple's dominance anytime soon," says senior practice director Jeff Orr. "With media tablets commercially available for more than four years, momentum is shifting toward value and affordability, putting tablets in more of the population's reach."

The big variable for Android is China, ABI noted. The Middle Kingdom is passionate about the Apple brand as well as the masses' ability to afford technology devices. Smaller, 7" Android tablets have become popular, though most lack the Google suite of apps and Android Play marketplace. A push for sub-$200 tablets is keeping Android relevant in both developed and emerging markets, Orr pointed out.

"Average selling price (ASP) and size have been moving down-market since Android tablets started honing in on the opportunity in 2012," ABI's report noted. "Rather than try to unseat Apple in the 10" space, tablet vendors sought a defensible area they could own; the result is the 7" devices."

ABI also noted that Apple, facing manufacturing limits in its first quarter of offer, saw the 7.9" iPad mini put a dent in the larger iPad sales and Apple profits. The first quarter of 2013 saw Apple cover its backlog and approach the typical four to six weeks of sales channel inventory while recording its second best ever quarter for total iPad shipments. ABI Research estimates that iPad mini represented 49% of units and 39% of total iPad revenues.

"Expect iPad minis to become the predominant iPad model after the June quarter," said Orr.