Analyst: iPad Will Face Greater Challenges For Market Share

An analyst has said that the iPad will face greater challenges for market share from both 7-inch tablets and new touch-screen ultrabooks.

After the launch of the iPad Mini in October, fourth-quarter sales of 10-inch iPad models decreased by 9 percent in the U.S. and by 26 percent in Japan year-over-year, Citi analyst Glen Yeung said.

Market share for 7-inch tablets increased to 41.2 percent in the fourth quarter from 12.6 percent in the second quarter of 2012. The same period saw the share for 10-inch tablets dropping to 40.6 percent from 67.3 percent.

"But beyond simply the overall share loss, the data reveals a particular slowdown in 10-inch iPad sales in mature markets and a clear downward trend in tablet ASPs (average selling prices)," Yeung said. "After analyzing the data, we have new concerns about the health of the 10-inch tablet market and, absent any material innovations (we do not count a Retina Mini or lighter/thinner iPad 5 among these), we remain concerned about Apple's ability to maintain market share."

Yeung believes increased innovation from tablets won't come to fruition this year, but he does see exactly that deriving from ultrabooks. Intel said that all ultrabooks based on their Haswell processor are required to have touch capabilities; such systems will cost as low as $599. Yeung said that these types of touch-based, ultra-thin notebooks with an adequate price tag could create competition for the iPad and other 10-inch tablets.

While Apple's iPad remained the market leader for tablet shipments in 2012's Q4, its share has been continuously decreasing due to the emergence of cheaper Android slates throughout 2012.

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  • Kami3k
    Honestly, how does one get a job as a analyst? They either state the obvious, or something completely against reality. It would be the easiest job in the world!
  • stickmansam
    ^ and if they get it wrong they are fine since its not their money and they will make something up to explain it away
  • thecolorblue
    i always chuckle at these "an analyst says..." articles.

    imho it it kinda embarrassing that toms keeps posting these, even if it is a slow news day/week
  • house70
    " we remain concerned about Apple's ability to maintain market share."

    Funny, I don't feel concerned about this a single bit. In fact, it doesn't concern me at all.
  • steve360
    "After going outside, looking up for a few minutes and consulting a color chart, I believe the sky is blue."

    See, I too can be an analyst.
  • Memnarchon
    When analysts talk about tech related topic, which they don't know a thing (well most of them), they always fail. Last analyst prediction in September about apple: apple will reach $1 trillion... and its on free fall from then....
  • InvalidError
    Availability of powerful 7" tablets hurts overpriced 10" iPad sales while cheaper Ultrabooks are expected to eat away from the other side of the price and size range?

    Congratulations Analysts for stating the painfully obvious.
  • freggo
    "An analyst has said that the iPad will face greater challenges for market share from"

    You know, pretty much 90+ percent of the THG readers would have given you the same analysis; and for a lot less money.
    Not long ago 'analysts' told us Apple will be the first to break the 1 Trillion barrier (got a good laugh out of that one); not they basically state the opposite. Good thing for Wall Street folk, they make money either way. Gotta love that job.
  • donovands
    Still waiting for someone to put out an ultrabook with a 650m that costs less than $1400.