Since its introduction of the iPad nearly two and a half years ago, Apple has held onto the lion's share of the tablet market. In particularl, Apple has managed to hold off all competitors that dared to mimic the 9.7-inch or 10.1-inch platform made famous by the iPad. As of October 23, Apple claims to have sold over 100 million units from their iPad family, with more 62.5 percent of the total tablets shipped in 2012 (according to IDC).
However, the new threat to Apple's dominance in the tablet space may not come from 9.7-inch and higher models. Surprisingly, Apple faces its largest competition in the tablet space from a form factor that, previously, Apple had not offered–the 7-inch model.
Approximately one year ago, Amazon shook the tablet landscape by introducing the first sub-$200 tablet, the Amazon Kindle Fire. While many were skeptical of the online book vendor's foray into electronics, many others saw the move as a stroke of genius. By combining the vast library of online titles at its disposal, Amazon would be able to match the current industry leader, Apple, in the one area that Apple had a significant advantage over their other competitors—content.
With more that 6 million Kindle Fire units sold upon its release, another powerful player in Silicon Valley took notice. Despite being known as the search-engine leader, Google Inc. used its experience in previous electronics releases to introduce the Google Nexus 7, another sub-$200 tablet featuring impressive specifications such as a quad-core processor and a rich display that was unexpected for that price point.
The introduction of these two devices, and subsequent improvements like the Kindle Fire HD, caught the attention of consumers with both devices selling in high volumes similar to that of their Apple counterparts. The Google Nexus 7 is expected to sell over 8 million units before the end of 2012.
With the 7-inch market growing at an exponential rate, it was only a matter of time before Apple would address this product segment. Despite Steve Jobs' protestations that 7-inch tablets were "Too big to compete with a smartphone; too small to compete with an iPad," on Oct. 23, Apple CEO Tim Cook introduced Apple's latest device, the iPad Mini.
Featuring a 7.9-inch LCD display with 163 pixels-per-square-inch, the iPad Mini also boasts the use of the same A5 dual-core processor found within the iPad 2, WiFi-accessibility and the availability of an LTE-enabled model. The selection of a larger 7.9-inch screen was driven by Apple's designers, who felt that a 7.9-inch screen resulted in 25% increase in screen over their 7-inch counterparts, and would improve the user-experience of their iOS 6 operating system on the iPad Mini.
With sales of somewhere between 1 and 1.5 million units on opening weekend, it's not the smashing success of the iPad 3, but how many electronics products achieve these kinds of numbers in the first 48 hours after launch?
I was all charged up about the mini and was about to pull the trigger and order one up, but the price of the version I need (most expensive one, of course) kept my finger off the Buy button and turned my excitement into dismay.
Missing from the article is a BOM analysis (too early to tell, I know, especially with the Apple brand hiding the true identities of the winners). Would be interesting to see what kind of margin estimates there is on the mini. With all the competition in the 7 inch tablet arena, I doubt Apple can maintain margins of the larger versions. That's why it has not been a smashing success and probably will not ever be.
I am not so sure how well 7" tablet sell in the US market. It seems to me Americans are looking for laptop replacement that 10" tablet suits the demand. On the other hands, Asian markets are looking for portability and 1 for all device. 7" seems to be a better choice. I am very interested in learn your preference and the reason.
I'd be interested in seeing a usage study on tablets based on size (per @chanj's comments).
Right now I use a laptop (for industrial-strength work), an iPad for much but not all of that work PLUS as a reading platform and an iPhone for phone and information/gps functions.
Each has its strengths; each its drawbacks. I frankly don't want to lug around all three, but I know that some people do. On the other hand, it's hard for me to envision a single device that does everything I want/need.
I have the smallest Kindle which weighs 6 oz. I LOVE the size and portability - great for reading, but terrible at surfing. Thus I was waiting for the IPAD mini. But it's disappointing for 3 reasons, price, mediocre resolution, and its too heavy. Maybe in a couple of years someone will make I tablet for me - 7", 6 oz, HIRES, fair price.
I have a MacBook Air, iPad (3rd Generation), and now an iPad Mini. While their functions overlap, each has specific jobs to do for me. I'd like to get down to two devices for travel, but while I'm sorting this out, the three together weigh significantly less than the Dell notebook my company issues. As an extra bonus, each is a whole lot more pleasurable to use.....
iPad Mini looks like a beautiful product and just the right size - thank you for the analysis.
One item is missing, however. A phone modem (BB) is offered as an option. Who is the supplier for the phone BB and transceiver ICs? Is it Qualcomm - or somebody else - like Intel or ST-E?
Many thanks in advance
By combining the vast library of online titles at its disposal, Amazon would be able to match the current industry leader, Apple, in the one area that Apple had a significant advantage over their other competitors—content. http://www.augustaranch-azsearchforhomes.com/
It still baffles my mind that all tablet makers still limit cellular usage to data only. To me, it only makes sense that you could use a bluetooth headset for phone functions and have one truly useful device instead of lugging around multiple products.
Alas, businesses seemed to be more focused on maintaining a quarterly revenue stream than providing products that make sense.
I am not so sure how well 7" tablet sell in the US market. It seems to me Americans are looking for laptop replacement that 10" tablet suits the demand. I have a friend working at http://www.123move.org who has got a Samsung note 2.
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