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March 3, 2011

iPad will Grab 80% of Tablet Market : Forrester


Apple is set to solidify its market dominance in the tablet sector -- garnering 80 percent of U.S. market for 2011  on the heels of the iPad 2 launch, according to Forrester Research. "The competing products we’ve seen announced so far from Motorola, RIM, HP, and others, while impressive, have fatally flawed price and distribution strategies, which leads us to our call that of the 24.1 million tablets that will sell to U.S. consumers in 2011, at least 20 million will be iPads," writes Forrester analyst Sarah Rotman Epps, in a blog post on the iPad 2.

Despite the improved features, the real factors that will keep the iPad 2 ahead of competitors -- mobile app content and Apple's retail channel -- have more to do with Apple's strategy of cultivating an emotional connection with consumers beyond the device itself, says Rotman Epps..The Apple Store also comes into play in the equation. "Competing tablets will all rely on Best Buy, Wal-Mart, Target, and carriers to sell their devices among many other products. At the Apple Store, the iPad is featured front and center, and consumers can try it out and have knowledgeable sales staff teach them how to use it and discover new content," says Rotman Epps.

It's no surprise that Apple's 65,000 iPad apps give it a huge edge over the competition. Twenty-three percent of consumers considering buying a tablet rank "number of available apps" in their top-three important features, according to a Forrester survey conducted in January 2011.

 The updated model, which was presented by  Steve Jobs yesterday has  dual cameras, a faster dual-core processor and a sleeker design ,it was clear that the new tablet  provides just enough improvements to keep Apple in the lead in the hotly contested tablet wars.

Key upgrades in the iPad 2 include a dual core processor, two cameras for video conf
erencing and a lighter, thinner design  ( 33% thinner than iPad1) dual-core processors with twice the CPU speed and 9  times the graphics rendering speed. along with 10 hours of battery life,

Also vaunting Apple further ahead is the newly reduced price of the old 16GB Wi-Fi iPad by $100 to $399.The refresh of the iPad also comes with an HDMI video out accessory cable that delivers HDMI mirrored video output up to 1080p that works with all apps so anything you see on the iPad screen you see on TV.

 Apple is beating its rivals to retail by a long shot, as most of their devices are still not on sale yet, with the exception of the Motorola Xoom.Forrester's surveys show that consumers expect to pay only $257 for a tablet as of January 2011, down from $504 in June 2010. 

"Tablets are expensive to build, but consumers expect them to be cheap. And, our data shows that they don't want to be tied in to a fixed data contract, and they don't want to buy from a carrier--meaning that pricing strategies that work for mobile phones won't work for tablets," says Rotman Epps