Android Tablets to surpass iPad’s by end of 2013
According to IDC’s latest finding, “smaller, cheaper tablets” will push sales beyond initial estimates, and also result in Android devices surpassing iPad sales. The firm predicts 191 million tablets will be shipped to market this year, up from previous estimates of 172.4 million. What’s most interesting is IDC’s view of how Android devices will come out on top of Apple against the market leading iPad.
Research analyst Jitesh Ubrani went on to support their initial claims by saying,
“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.
“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.”
In the end, IDC projects that Android will reach 49% this year, while iOS falls from 51%, to 46%. For the rest of the market – Microsoft’s Windows 8 currently only accounts for 1% of all shipments, but is expected to rise to 7.4% by 2017.
Research director Tom Mainelli said,
“Microsoft’s decision to push two different tablet operating systems, Windows 8 and Windows RT, has yielded poor results in the market so far,”
“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.”
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.
Excellent points.