Android Tablets Still Losing Ground in the Market
Despite the success and popularity of android phones, the tablets are on the opposite side of the market. Reports, data, and analysis from 2011 and 2012 have shown that the market for android tablets is fast dwindling while those of other platforms like the Apple’s IPad and the Amazon’s Kindle Fire are rising fast.
What could be responsible for this? You may want to ask. Well, the answer to that question may well be provided in the paragraphs below.
Here, an analyst takes us through the performance of android tablets in comparison with other tablets like the iPad and the Kindle Fire from Amazon:
First quarter numbers from IDC showed that Android tablet shipments declined in Q1-12 from Q4-11, while Apple cruised ahead, reasserting dominance of the tablet market. Looking a bit deeper, we see that Amazon’s Kindle Fire tablet, a deviation from Google Android, is becoming dominant, and all the tablets from Samsung, Moto/Google, and other mainstream CE and PC manufacturers are losing share. This looks like a disaster for Android.
It is a disaster for Google’s Android tablet strategy, which seems to boil down to producing a better product with much the same value proposition as Apple’s iPad. The high-end Android tablets that are positioned right against the iPad (Moto Xoom, Samsung GalaxyTablet) are losing ground. Asus, Acer, and Toshiba, which have more of a value strategy, are hanging on. The others have failed to make a mark.
However, Amazon has created a whole new market with the Kindle: defined by simpler hardware and software, $200 price point, and linkage to the Amazon content platform and brand.
There’s more to this market than the Comscore numbers show, because Comscore does not consider Barnes & Noble’s Nook to be a tablet, although it’s functionality is similar to the Kindle. Other sources indicate that Nook sales are a large fraction of Kindle sales.
And, the lower-priced market is seasonal (more of a gift market) than the iPad. Analysts expected a Q1 dip in sales; it does not indicate that the category is going away.
Most important, there is a wave of competing tablets coming at the sub-$200 price point. Amazon has shown that there is demand for this class of product. The open source code for Android 4.x (Ice Cream Sandwich) was released in late 2011. OEMs are working hard to launch new sub-$200 products based on the new OS.
This produced a pause in Q1 and Q2 but will bring forth a surge of new offerings in the summer. A new wave of Chinese ODMs and CPU chip companies are entering the market with cost structures that are lower than the Taiwanese and Korean OEMs and ODMs who produce the bulk of products in the market today. They will offer products that retailers can sell well below $200 with a normal margin. Click here for the full analysis.
So, you have graphically seen how android tablets are fairing in the market. The truth is that, there general performances are still well behind those of iPad and Kindle Fire. As observed by the analyst, effective enterprise solution and management should be applied to change the marketing strategy for these tablets. When this is done, it is expected that there would be revival in the sales for android tablets.
Finally, as many OEMs for android go to the drawing board in the next few months, we are expecting cheaper performing tablets built with better enterprise applications.
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May 19, 2012 
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