Why Apple Is Ready to Dominate Tablets in 2013

At the beginning of 2012, researcher IDC estimated fewer than 200 million tablets would be sold by 2016. They recently ramped up the forecast to 282 million that year. That is, IDC became 40% more bullish on tablets in just a year.

It took 19 years from the sale of the first IBM PC to hit 100 million PCs sold. The Apple (NASDAQ: AAPL  ) iPad was launched in 2010, and tablets will hit 100 million in sales this year.

That's some fantastic growth. Senior technology analyst Eric Bleeker explains in the video below how unique tablet market dynamics have created a situation where Apple appears poised to keep its 50%-plus market share in 2013.

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  • Report this Comment On January 01, 2013, at 7:56 PM, SamanthaMeloni wrote:

    Yes, I believe Apple still dominates tablets in 2013, but now when Apple has iPad Mini, new buyers will likely choose the iPad Mini. Therefore, the profits of Apple will decrease. Apart from tablets, Apple will face competition in smartphones, if nothing really innovative and breakthrough come out of Apple in 2013.

    Let´s say, if Nokia can take even some market share in China with China Mobile deal, and Nokia will launch tablet, and Nokia´s loyal consumers around the world will buy some Nokia´s tablets, in this case Nokia stock is much more with bigger upside then Apple, because NOK share is now only $4 and Apple share is over $500. In other words, if Nokia only increases a little in profit the stock will climb, because Nokia shares have been over sold. And Apple share will go down significantly if Apple´s profit decreases only a little, because the stock has not been short sold yet. Conclusion, Apple has the pressure to outperform market expectations every quarter in order to make the stock gain, if not, just like last quarter Apple´s EPS only missed some cents, the stock came down from about $700 to about $500. The reason is understandable, because many shareholders of Apple have already gained over 1000% in the stock, so they want to take profit before the possible slump. I myself, I sold half of my Apple shares and put the money into Nokia, for some balance just in case.

  • Report this Comment On January 01, 2013, at 10:08 PM, Zankudo wrote:

    It is not hard to say Apple will keep a high market share of tablets in 2013. But that is old news. Windows 8 and WP8 and the tablet that come from one or both of them will eventually take sales from Apple. Apple's smartphone sales will eventually feel the pressure since it has one phone to sell unlike Nokia which sells very good phones at every price level. Neither should it be underestimate that Nokia has the inside track in China which has resisted Apple because it wants too much of the pie. And lastly you have a vested interest in touting Apple. You own it. You pump it. Thus, your objectivity is questionable.

  • Report this Comment On January 02, 2013, at 12:57 AM, onceuponatime123 wrote:

    So isn't this our chance to take the ride to 100 million Nokia W8 devices? Isn't that the better growth opportunity over the Apple play at this point?

  • Report this Comment On January 02, 2013, at 3:33 AM, JustinCrowe wrote:

    Love my job, since I've been bringing in $5600… I sit at home, music playing while I work in front of my new iMac that I got now that I'm making it online(Click on menu Home)

    Happy New Year!

  • Report this Comment On January 02, 2013, at 5:46 AM, BelgianWaffle wrote:

    What kind of analogy are you making...

    "It took 19 years from the sale of the first IBM PC to hit 100 million PCs sold. The Apple (NASDAQ: AAPL ) iPad was launched in 2010, and tablets will hit 100 million in sales this year."

    It also took Ford 20 years to sell 2 million cars. And know they are selling 2 million cars a year. Wow they must be really dominating the car market.

    You can't compare figures from the start of the technology revolution, with the present. That's a dumb analogy, that doesn't make any sense.

    I do believe Apple will still have the largest market share when it comes to tablets. But I also think they will lose market share instead of gaining.

  • Report this Comment On January 02, 2013, at 6:13 AM, Videnak wrote:

    I think, that Eric is smoking something really strong. Personally, I am almost convinced that PC is far from being "death". Tablet is a nice piece of HW but it is a toy with limited professional use. In some instances it has advantage but betting on tablets replacing PC/notebook is simply wrong assumption. Lot of people will figure out that having "dirty" screen is not "in".

    Apple may keep significant market share but the technology has significant "barrier" for newcomers - unlike Windows, it is very difficult to install anything. I would rather bet on duo MSFT/NOK to make substantial progress than trust Fools in their promotional videos.

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