It’s been just over a year since the first iPad tablet was launched. Now with the iPad 2 launch last month that saw even more hype and more demand than its predecessor, Apple’s tablet is a powerhouse to be reckoned with. Sales have gone through the roof and continue to climb as high demand is prevalent across the country. Analysts at Goldman Sachs are now saying what is becoming obvious, Apple and the iPad will dominate the tablet market for the next two years at least.
The Samsung Galaxy Tab and Motorola Xoom tablets are decent products, but have arrived too late to the game. They are worthy competitors, but to what degree? Goldman Sachs thinks they lack the luster overall to meet or exceed the iPad’s popularity in the coming years.
Researches at the firm expect Apple to claim at least 54 percent of the tablet market share in 2011 and 2012. If tablet competitors’ sales fall below their expectations, Apple may enjoy up to 74 percent of the tablet market share in 2011, and 71 percent in 2012. Goldman is leaning towards the latter figures with Apple holding onto more than 70 percent of the tablet market in the next two years.
“If we include tablets in our PC unit forecast, then our estimates suggest Apple’s combined iPad and Mac market share would reach 12 percent in 2011. This represents an incremental $8.7 billion in iPad gross profits for Apple, or more than the $6.0 billion in profits we expect the company to generate from the Mac business. Based on the current market share breakdown in the PC market, this could presumably make Apple one of the largest vendors in the combined PC and tablet market.”
Further insight into the future sees Apple’s stranglehold continuing if the iPad keeps on digging into traditional PC sales.
“There has been ample evidence that the iPad began to immediately cannibalize Wintel notebook and netbook units upon its launch. Indeed, PC unit growth has been sub-seasonal since the iPad’s debut and annual unit growth has deteriorated substantially. The most recent IDC data suggests that this continued into the first quarter of 2011, with PC units declining 3.2 percent year-over-year and 13 percent sequentially.”
Apple is set to report its 2nd quarter earnings for 2011 later today at the close of the stock market. They’re expected to report net income of $5.35 per share on $23.7 billion in sales. Last year, they saw a net income of $3.33 per share on $13.5 billion in sales. We’ll have a report on the earnings once they become available.
iPad News Via: allthingsd.com
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