August 23, 2010
Is the iPad's market share going to drop to just 20-30%? This is the prediction recently made by Acer chairman JT Wang, speaking to the Chinese language paper the Economic Daily News. Right now, Apple's device pretty much controls 100 percent of the tablet market. However, as other companies start producing their own devices, Wang believes that Apple's piece of the pie will dive quickly. I'm not sure I believe these numbers, but it really doesn't matter. What sets Apple apart in the end is the uniqueness of each of its products. As such, consumers know that when they buy an iPhone, for example, they are getting something different than anything else on the market. Other companies, however, are forced to rely on operating systems that are available on multiple devices. Tablet producers are facing a similar situation. Since companies like Acer have to rely on using an OS used elsewhere, its products could be lost in the market. For example, when Acer's own tablet debuts later this year, it will include Windows 7, which will be available on other tablets. At that point, consumers will make purchasing decision based solely on price. Just like in the overall PC market. Nobody expects the iPad to control the infant tablet market forever. But I am sure that no one at Apple will be upset if its device levels out at 20-30% of that market in the long-run. Especially with the huge profit margins Apple is used to. Besides, while they'll be countless Windows 7 or Android tablets available, there will only be one iPad.