Apple Set to Dominate Tablet Market Through 2012

Even with a flood of rival products, Apple Inc.’s iPad is unlikely to face a viable competitor until 2011, allowing the company to maintain a dominant share in the tablet market at least through 2012, according to market research firm iSuppli Corp.

The iPad will account for an overwhelming 74.1 % of global tablet shipments in 2010, with the remaining 25.9 % consisting of a mix of older PC-type tablet products & competitive slates. Despite the arrival of the first real iPad competitors in 2011, Apple still will maintain a prevailing 70.4 % share of shipments, iPad research from iSuppli bears out. Even in 2012, the iPad will continue to control nearly two-thirds of shipments, at 61.7 %, as the competition strives to develop ecosystems of tablet apps and content that can match up with those of Apple.

“Although the iPad has been on the market for only a few months, powerful interests throughout the technology business are devoting enormous resources to challenge and topple Apple’s domination in this fast-growing marketplace,” commented Rhoda Alexander, Director, Monitor Research at iSuppli. “However, if recent history is any lesson, it will take some time for these companies to get their products to market, longer for them to offer necessary software support and infrastructure, and an even lengthier period to begin to rival the overall user experience Apple is able to deliver.”

The iPad is in a similar situation as the iPhone when it first arrived. Launched in June 2007, the iPhone teardown was followed by a range of competing products during the next five months to two years, such as the Samsung F700, the UTStarcom XV6800, the Google G1 and the Palm Pre. However, it took almost three years for the competition to offer phones that were not just in the ballpark of being comparable to the iPhone, but also were truly differentiated and superior in some respects, iSuppli’s mobile market research indicates.

There are presently numerous products identified by iSuppli as iPad competitors, such as Android- and Windows 7-based tablets from Hewlett-Packard Co., Dell Inc. and Lenovo. However, none of these is a serious competitor to the iPad from a solution perspective, iSuppli believes.

“Companies are quickly developing products that match or exceed some of the surface hardware specifications of the Apple iPad,” Alexander opined. “But it’s still unlikely that any of the competitors will be able to equal the overall performance experience of the iPad.

A number of new tablet devices are expected, in addition to the ones in the market today.

This is probably the best example to date of a competitor trying to link the smart phone/tablet experience similar to what Apple has done with its iPhone/iPad.

Rumors are also prevalent regarding Research in Motion Ltd. after its recent purchase of the BlackPad domain name. Alexander believes that the most interesting near-term iPad competition is likely to come from HP, which has the requisite experience in building PC-level devices, as well as access to a proprietary WebOS through the company’s Palm acquisition. Nonetheless, HP’s iPad challenger is unlikely to appear before 2011 and probably will include multiple products-including a tablet with significant creation capabilities targeted at the enterprise market, in addition to one or more consumption-style devices targeted at consumers.

Even with their hardware ducks in a row, the iPad competitors will encounter other problems in competing with Apple.