Telecom Lead India: Global media tablet shipments are
expected to reach 124 million units in 2012, up 90 percent from 65 million in
2011.

IHS iSuppli predicts that the annual rate of growth will
slow in the coming years. Tablet shipments are projected to increase to 197
million in 2013, to 250 million in 2014, to 285 million in 2015 and to 311
million in 2016.

With its new model and lower pricing on the popular iPad
2 model, Apple is poised to regain some of the media tablet market share lost
to Android competitors in Q4 2011.

Apple’s share of media tablet shipments in 2012 is likely
to be 61 percent, up from 57 percent in Q4 2011.

While Apple’s 2012 market share is expected to decline
slightly from 62 percent in 2011, the company is set to maintain its majority
position in the media tablet market into 2014, when it still will hold a 52
percent share of global shipments.

With the arrival Windows 8 on ARM microprocessors
postponed to 2013, and most of the Android competitors now regrouping, IHS has
lowered the media tablet forecast for Apple competitors in 2012. This means
Apple will continue to capture the majority of the market well into 2014.

With the release of the third-generation iPad, Apple is
leapfrogging the competition, resetting the bar for media tablet performance,”
said Rhoda Alexander, senior manager, tablet and monitor research for IHS.

An IHS iSuppli press release said that the inclusion of
higher-resolution images in the iPad iBooks app provided evidence that a
higher-performance display was on the way. The higher-performance screen likely
will prompt developers to rush to update and optimize their content to take
advantage of the improvements.

One of the market opportunities for media tablets is in
education, both in institutional purchases and in direct sales to students.
Apple has been aggressively courting educators, hosting events at its
Cupertino, Calif., campus and expanding its offerings of digital textbooks and
educational applications.

Apple also is expanding into corporate and specialty
markets, such as medical and transportation. The capability to reach beyond the
consumer segment provides additional insulation for Apple from the price wars
currently besetting the Android marketplace.

The field of iPad competitors continues to shift, with
some of the early entrants fleeing the field even as new players join the
market.

The price slashing that accompanied the entry of the
Kindle Fire from Amazon in the fourth quarter of 2011 took a toll on many
players in the Android space. The shipment gains for Android tablets in the
second half of 2011 were secured at the cost of a 41 percent decline in the average
street price for Android tablets. Apple retained 74 percent of the revenue
share of the tablet market in the fourth quarter of 2011, even as its unit
share declined to 57 percent, down from 64 percent in the third quarter.

Though it will be careful to maintain its premium price
position, Apple may still have an additional product for cost-sensitive
consumers in late 2012. Reports from component suppliers point to a smaller
version of the iPad, which reportedly would utilize a 7.85-inch, XGA display.
Apple has yet to confirm that such a product will be part of its product
strategy, but suppliers anticipate its release in the fourth quarter.

	IHS iSuppli Figure: Global Media Tablet Unit Shipment Forecast (Thousands of Units)
		2010	2011	2012	2013	2014	2015	2016
	iPad	15,096	40,493	75,261	113,974	130,366	141,162	149,377
	Other Media Tablets	2,256	24,697	48,250	83,446	119,882	144,055	161,791
	Source: IHS iSuppli March 2012
	Source: IHS iSuppli March 2012

 

[email protected]