Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Report: Android steals 20% of tablet market share from iPad

By | August 12, 2011, 11:33am PDT

Summary: Although Apple is the undeniable leader in tablet production still, a new survey shows that Android has at least one fifth of the market now.

Another study pins Apple on top of the worldwide tablet market share leader board, but Google’s Android has gained considerable ground.

Technology market intelligence firm ABI Research reports that Android-based tablets have grown to nab 20 percent of the market away from the iPad in the last year.

ABI points out that not a “single vendor using Android (or any other OS) has been able to mount a significant challenge against” the iPad. This fits in accordingly with a study from iSuppli published last week, which argued that tablet manufacturers have not been able to compete with the iPad’s design.

But more so than the external design, ABI attributes the lack of competition up until now to “fragmentation within operating system software.”

ABI Research’s mobile devices group director Jeff Orr the potential of open software platform development in a statement:

De-featured, low-cost media tablets are being introduced by more than fifty vendors in 2011. This will certainly help bolster year-over-year growth for the category, but it also creates a negative perception in the minds of the mass consumer audience about the readiness of media tablets to be fully functional within the next several years. Good user experiences and product response are needed to propel this market beyond the ‘early adopter’ stage.

Earlier this week, DigiTimes reported that non-Apple tablet sales are expected to surge by 134 percent in 2012 thanks to new and advanced chips from a handful of ARM suppliers such as NVIDIA, Texas Instruments and Qualcomm. Android and Apple shipments are expected to level out more evenly as Android-based tablet PCs are expected to increase to 44-45 million units and iPad shipments are predicted to hover around 54-55 million units in 2012.

[via Boy Genius Report]

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Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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RE: Report: Android steals 20% of tablet market share from iPad
Mark Lechman 20th Sep
I've seen this same thing before happen in the 1980s. Here's the story: Apple releases an amazing new product to the public that is going to radically change the industry as we know it and make life easier for all of us. But wait, here come the cloners with their rushed and inferior copies, banking on the contemporary American ideal that cheaper is somehow better. So a few years go by while Apple users enjoy the future of technology and the rest of the world looks on in bitter disgust, eschewing their "sour grapes" for the world of MS-DOS. In response, the cloners toss out wave after wave of inferior products in the hopes that they grasp some sliver of marketshare, with the knowledge that consumers will deal with budget-crap until the cloners can technologically catch up to Apple. So while Apple users of the 1980s, for example, enjoyed computing with a mouse instead of command lines for many years, the consumer PC world didn't catch up in terms of its OS until 1991 with the release of Windows 3.1 (some would argue they didn't even catch up until Win 95). But during that time, the public perception of what a computer can and should be was led by the el-cheapo/el-crappo PC clone industry rather than an innovator like Apple. The result? Well here we are today in 2011 and people still think paying $50 a year for an anti-virus subscription and calling their hard disk "C:" makes perfect sense. Fast forward to present times and where are we now? Well, recently Apple invented the first useful and consumer-friendly tablet computer. It's been a huge hit for them so of course, with the smell of money wafting upon the wind, the cloners step in and start selling their Android tablets for as low as $99! Why pay $500 for an iPad when I can get a Sylvania for $99? It's the same thing, right? So in the end the populace, who cares less about user-experience than the desire to fulfill their need for "shiny new things," buys into it, justifying that the low-low price is worth the extra headaches and trouble and maybe someday, it'll get better. Once again, history begins to repeat itself, and once again, the consumers are fooled into believing that the cheapest and crappiest products are actually representative of the potential of a new platform and their expectations of that technology are lowered, thereby relieving the industry of any pressure to innovate. Hell, why create something new when fixing the existing problems will make consumers just as happy?
0 Votes
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That's right. Android 'steals'.
Dietrich T. Schmitz * Your Linux Advocate! 12th Aug
And Samsung 'stole' (Trade Dress) the rounded corners design on rectangular objects from Apple too.

Outrageous!
@Dietrich T. Schmitz * Your Linux Advocate!
Yeah you wish, funny that you would bash a linux tablet for something like Apple that uses a freakin kids drawing to block a product they know is threatening their dominance. Plain and simple they see the writing on the wall and real pathetic to use something like that to block a competitor.
0 Votes
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Why is it pathetic?
toddybottom 12th Aug
@OhTheHumanity
If you owned a company and you were worried that a competitor might prevent you from maximizing your profits, wouldn't you do whatever it took to stop that from happening?

Of course you would. And if you wouldn't, you would be out of business very quickly.
0 Votes
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I was being facetious. Dude wake up and smell the moca java
Dietrich T. Schmitz * Your Linux Advocate! 12th Aug
@OhTheHumanity

Read here about Trade Dress:
h-t-t-p-s://plus.google.com/101839830409692150605/posts/4UybGGpwWju

I am on your side.
@OhTheHumanity
If Axis of Evil don't succeed in the courtrooms they are going to start sending snipers around the country to shoot people who use Android devices ...
@OhTheHumanity
You two should get together for a date
@toddybottom Having been minority owner of a company for eight years, my answer, at least, is no, I wouldn't do WHATEVER it took. Some things are illegal, and others are unethical. Still more things grant short term gain at the expense of long-term pain. Others result in PR backlashes or disasters.
@OhTheHumanity - and iOS came from open source as well.

Pot, kettle...

And he has a point. "Steal" is a bit of a harsh word. You know, how dare competition steal Apple's profit since only Apple's executives deserve to make money (they even offshore jobs to a company where workers who make $2/hr are known for trying to kill themselves...)
@toddybottom - which is why working together for a common good (e.g. Candidate Obama) is far better than foisting so-called competition ("President" Obama).

Funny how things change, and did we get change... just not the type people were thinking of at the time...

http://www.youtube.com/watch?v=pBSaXeshBF4
http://www.msnbc.msn.com/id/3096434/vp/40575006#40575006
0 Votes
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Apple today = IBM 1982
kd5auq 12th Aug
Google/Samsung = Compaq/Gateway 1982
Consumers will win in the end with "reasonable" prices and all companies will end up with black eyes!
@Dietrich T. Schmitz * Your Linux Advocate! If it was just that I believe apple really wouldn't have had too much of a case. However if you look at the total body of what was done, it is pretty obvious they attempted to imitate as much as possible. It kind of reminds me of the movie coming to America. McDonalds vs McDowels

"Look... me and the McDonald's people got this little misunderstanding. See, they're McDonald's... I'm McDowell's. They got the Golden Arches, mine is the Golden Arcs. They got the Big Mac, I got the Big Mick. We both got two all-beef patties, special sauce, lettuce, cheese, pickles and onions, but their buns have sesame seeds. My buns have no seeds. "
@Johnpford Different OSes, processors, features, names... yep, they sought to imitate as much as possible. Why, it's almost impossible to tell a "Samsung Galaxy Pad" running Android from an "iPad" running iOS in the store! Sheesh.
@Johnpford

Coming to America! Do I win a new pony????

happy
0 Votes
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Yeah heard it all before....
James Quinn Updated - 12th Aug
@jgm@... .. Back when Apple introduced the Bondi Blue iMac it was a huge HIT everyone started adding color plastic to their devices like vacum cleaners and such. PC OEM's added colored plastic to their boxes but hey no one got sued. Then a Korean outfit made a duplicate visually of the iMac and slapped Windows on it. Apple sued and WON. Now the Korean outfit made the exact same arguments you and others have made. It's running Windows! It's logo is different from Apple's! Heck eve back then the processors were different. The thing about these cases is it does not have to be an exact copy to violate it just has to be way to close:)

Pagan jim
@Dietrich T. Schmitz * Your Linux Fanboy!
I find it funny that you are even commenting on this since just this morning I read a quote of your's from last year about how tablets would be nothing more than a small niche product happy
@Dietrich T. Schmitz * Your Linux Advocate!

You should check stuff you post, like "Designers use it for all manor of objects"

manor or manner??
0 Votes
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wonder how many dudpads sitting in the warehouses?
@systemx Tell that to Apple, they claim 3 to 5 weeks worth sitting in the warehouse and then admitted they sold 3.5 Million in 3 weeks so they could have 3.5 to 5 Million of those iPads sitting in the channels and claiming 9.25 Million sold (when really they mean shipped).
0 Votes
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@Peter Perry .. speculating? Just saying you don't actually know anything about this subject do you?

Pagan jim
Same way you're speculating, Pagan Jim.
@Peter Perry

That is what stuffing means. But then most Fandroids only have lies and deciept.
0 Votes
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@goff256 .. about someone else's speculation? For I would argue I am observing that someone else is speculating:)

Pagan jim
@systemx
And... what about the report that there is a segment of Android tablet buyers (of which I am one) who purchase a tablet only to find out it doesn't come close to an iPad... end-up selling it, and eventually buy an iPad.

Seems like we might be a segment who "steals" the 20% back to Apple.
0 Votes
+ -
And how much profit will they steal from Apple?
toddybottom Updated - 12th Aug
Profit is the only thing that counts and not one of those Android tablets will make a profit. They will either have to be priced at $500 and then they won't sell (because they don't have iTunes ecosystem) or the will be priced at $300 and lose money on each one sold.

So while stealing 20% marketshare sounds good in theory, the practice is that nothing is taking anything away from Apple. In fact, I bet you that 20% is in shipping marketshare, not units sold marketshare. Apple still has nearly 100% units sold marketshare and will for quite some time to come. The tablet market is a very sick market with no real competition in it. iTunes and lawsuits will ensure that there isn't any real competition in this market for years to come.
@toddybottom Remember Ma-Bell? Remember how Microsoft now can't put things like a browser or virus protection in their product because they "own" it? If the IPad gets too big, the gov't will simply say "Good for you, now get rid of ITunes because its too successful. You need competition." You can laugh and think it won't happen, but it defintely can. The only reason IPhones don't have this issue is because of the success of Android. Android won't ever have this issue because they are open.

BTW, recall that Apple would have gone under if it weren't for MS giving them a bunch of money. The reason they did this is because without Apple, MS would have no competition and therefore would have been subject to gov't regulation.

You don't want to be too successful.
@A Gray
Droid open?! what are you smoking. google = evil
@A Gray Partially true. MS gave money to apple as part of a larger settlement also. There was a long standing lawsuite between Apple and MS on two points. One was blatent reuse of code from Quicktime in their codecs(Line of line), the other was from over lapping windows patent that MS was never granted. If MS would have forced Apple out of business it would have looked really bad with the problems they already had AND these cases out there. The money was also part of a large pool of cross patent access as well. So it was hardly charity money, and rather smart on MS side to keep them alive.
Here's what happened. MS got caught stealing Apple technology. They settled by paying Apple a bunch of money.
@systemx actually Android is Open, you can get the source for most versions. I honestly believe that Google will release the 3.2 Source shortly as it has finally stabilized all their Apps.
@Johnpford Apple was bleeding money, call it what you want but if MS didn't need them they could have just as easily waited them out until they went bankrupt and then bought up what was left of them.
@A Gray
MS paid Apple $150 million as part of a legal settlement. At the time Apple had $4 billion in the bank. MS didn't save Apple.

-Mart
0 Votes
+ -
@A Gray

If Android is Open, where is Honeycomb? How can Google complain about MS looking at secrete Android OS code?
@toddybottom So why are iTunes-less Android phones surpassing iPhones? Could there be a flaw in your theory?
0 Votes
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They are NOT...
James Quinn 12th Aug
@anothercanuck Name one OEM selling Android phones that sells more phones than Apple? You can not. Name one who makes more money per sale than Apple? Name one who makes more revenue after the sale than Apple selling Apps, movies, music etc? Android is not a manufacturer or brand name it's an OS that is being put on phones from a host of OEM's so yes you'll see large sales numbers if you count "Android" en masse but does that actually mean anything to Apple? I think if I were to choose I'd much rather be in Apple's position than any one of those poor Android OEM's struggling against one another for scraps.

Pagan jim
@anothercanuck Wait'll Amazon releases their tablet with their music store, streaming movies, bookstore, etc. all bundled in. Toddy's head will explode. happy
@James Quinn Tell me how that worked out for them in the 80s?

Reality is, at some point it makes more sense to support just one platform and that platform is usually the one with the larger market base.

So, tell me which on has the larger market again among Smartphones?

According to this News the Tablet Market is next and likely will be 50% Android Worldwide within 16 Months.
0 Votes
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Worked out just fine.....
James Quinn 12th Aug
@Peter Perry .. Sure MS had all the OEM's selling MS OS and Apple was said to be dying each and everyday but Apple did not die and today is HUGE and profitable with like 70 to 80 Billion with a B in reserves. Now at the very same time during the famous PC price wars there were constant OEM's selling MS wares that did go under... I'd wager one can't even find a solid number on how many but it was HUGE! This is one of the reason's I don't count Google in the mix cause Google does not actually have a dog in the fight and will succeed where countless Android OEM's will come and go and come again and go. All the while Apple will be there still making good money and if trends continue selling more each and every quarter like more iPhones and iPads and yes even more Macintosh's which it is currently doing thank you.

Pagan jim
@toddybottom No claim in your first paragraph is supported by any subsequent facts or reasoning. The idea that losing 20% market share doesn't mean anything is similarly unsupported with the combination of being unintuitive.
@jgm@... Yet another half truth. If the projections are true they will lose 20% of the market but they won't lose the sales and it will be due to the market growing. Very different than the competitor taking 20% of your sales away. Of that 20% how many are bottom of the barrel cheap junk that won't be used beyond a few weeks. That isn't Apple or any of the big boy Android OEMs market so they don't care about them.
0 Votes
+ -
Infringing on other companies intellectual property and abusing its monopoly power in ads, Google is using its market dominance in one market to exploit another.
@facebook@...
I am using many Google services and never had to pay for any of them, while a friend of mine bought iPhone 4 and MacBook and afterwards was asking me to borrow him money to go to vacation ...
0 Votes
+ -
@AdnanPirota that you're friends iPhone which should have cost him what 199.00 and a Macbook which might have cost him what 1000.00 roughly was the cause of his lack of money? Sounds to me you're friend has a money management issue and not an Apple one:)

Pagan jim
@AdnanPirota Not that anybody believes what you posted but what are you using to utilize those Google services? Of course the services are free just as they are free to use with the mentioned iPhone 4 and MacBook but you have to buy the hardware to access those services.
@facebook@... Show us the Proof, I want to see the evidence of such claims or it is just out right lies!
@Peter Perry

Regardless of how successful Android continues to be, there will always be haters. Android will be around as long as Google chooses it to be, since they ultimately fund it.
@DonRupert Android in some form could be around even after Google wishes it to be, since it's mostly open source. happy
@Peter Perry Wait a minute, now you want proof? You never seem to worry about proof when making claims against Apple.
These reports are funny as usual. 20% market share for Android means they are sitting on Vendors store shelves. Just visit a Best Buy, Target, etc. See how many Samsung tablets are in stock, compared to iPads.
@johnsuarez10
a lot of people are not aware of the experience/price ratio, iPad simply came earlier to the market and same as with the smartphone market Android is going to kick iOS ass within 2-3 quarters ...
I've seen this same thing before happen in the 1980s. Here's the story: Apple releases an amazing new product to the public that is going to radically change the industry as we know it and make life easier for all of us. But wait, here come the cloners with their rushed and inferior copies, banking on the contemporary American ideal that cheaper is somehow better. So a few years go by while Apple users enjoy the future of technology and the rest of the world looks on in bitter disgust, eschewing their "sour grapes" for the world of MS-DOS. In response, the cloners toss out wave after wave of inferior products in the hopes that they grasp some sliver of marketshare, with the knowledge that consumers will deal with budget-crap until the cloners can technologically catch up to Apple. So while Apple users of the 1980s, for example, enjoyed computing with a mouse instead of command lines for many years, the consumer PC world didn't catch up in terms of its OS until 1991 with the release of Windows 3.1 (some would argue they didn't even catch up until Win 95). But during that time, the public perception of what a computer can and should be was led by the el-cheapo/el-crappo PC clone industry rather than an innovator like Apple. The result? Well here we are today in 2011 and people still think paying $50 a year for an anti-virus subscription and calling their hard disk "C:" makes perfect sense. Fast forward to present times and where are we now? Well, recently Apple invented the first useful and consumer-friendly tablet computer. It's been a huge hit for them so of course, with the smell of money wafting upon the wind, the cloners step in and start selling their Android tablets for as low as $99! Why pay $500 for an iPad when I can get a Sylvania for $99? It's the same thing, right? So in the end the populace, who cares less about user-experience than the desire to fulfill their need for "shiny new things," buys into it, justifying that the low-low price is worth the extra headaches and trouble and maybe someday, it'll get better. Once again, history begins to repeat itself, and once again, the consumers are fooled into believing that the cheapest and crappiest products are actually representative of the potential of a new platform and their expectations of that technology are lowered, thereby relieving the industry of any pressure to innovate. Hell, why create something new when fixing the existing problems will make consumers just as happy?

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