A detailed analysis from J.P. Morgan Chase on the current and (possible) future outlook of the tablet market reveals some very bleak information for tablets that don’t have a fruit on the back. The new report which was published last Wednesday, is saying that iPad competitors “have slowed production by as much as 10 percent since this time last March.” Everything from the poorly launched XOOM to the Transformer, Galaxy Tab and the Playbook have failed to gain real traction and garner consumer interest. This is expected for those listed, but the Transformer sold well right? Well, it turns out many stores are now overstocked and a quick Amazon search shows plenty to choose from. What’s this mean for the future of the tablet market?
This was supposed to be an exciting time for the tablet industry. It still is in many ways, but we have seen plenty of curve balls throughout the process. Apple continues to have strong sales of it’s new iPad while the original sold over 20 million and is still potentially available in some parts. Heck, there are still many Apple stores that aren’t able to keep the iPad 2 in stock still! Oh, and the apps.
Having both the XOOM and the iPad 2 gives me pretty quick access to both app stores. There is no comparison between the two. Apple wins hands down, and they should as the Honeycomb tablets have only been available for a couple of months. But this brings out the chicken and the egg theory…..do developers bring consumer demand up due to the amount of available apps, or do consumers bring developers into the action once the platform starts selling?
Of course there are scenarios to fit each one, but the developer interest seems to be pretty lopsided for the iPad at the moment.Interesting to see the same interest from consumers as well. This is a problem for Android and it’s future.
The J.P Morgan Chase analyst, Mark Moskowitz, feels that we will see a huge tablet bubble (non iPad) this year that should burst this Fall. He suggests “that a slew of iPad competitors could flood the market and sit there, not tempting customers and leaving a huge oversupply of products.” Perhaps this down shifting of production will “slightly temper our prior concerns.”
This is one analysts opinion of course and nothing is guaranteed. I for one agree with his outlook though, and have no real reason to think things will change. Honeycomb is still a mess (at least on my XOOM) in most parts and the RIM Playbook pretty much fills a niche market at this point. Perhaps when the 10″ version is available and they drop the Blackberry Bridge idea for email and calendar access. Even if Honeycomb improves to Apple levels though, and there’s a 10 Playbook, it’ll be pretty tough to compete with the iPad at that point. The way I see things, only the Android faithful want a Honeycomb tablet and same with RIM. Meanwhile, only the Apple haters don’t want the iPad.
source: NY Times