Tablet competitors on the starboard!
After the relative tranquility of seven months alone on the market, the iPad is finally getting some competition. Earlier this week, BlackBerry-maker Research In Motion
While Samsung's entry into the tablet field can be purchased for $400 from Sprint
That's a cagey move on Apple's part. The company has notoriously held firm on product simplicity -- such as releasing only one iPhone model -- but Apple released a Wi-Fi and 3G model of its iPad. Thanks to that move, consumers anchor to the entry-level price of the $500 Wi-Fi-only model of the iPad when in reality they tend to buy the more expensive models. Last quarter, the average iPad selling price was $645, above the price of the entry level 3G-model.
With Gartner projecting sales of tablets growing from 19.5 million this year to 208 million in 2014, Apple's decision to forgo profits now to establish a stronger leadership position should pay off. Apple's current 95% market share won't last long, but if it captures a comparable market share to what the iPhone currently sees in smartphones, that'd leave Apple positioned for 35 million iPads sold in 2014 if Gartner's tablet projections prove correct. At today's selling prices, the iPad would be contributing $22 billion a year in sales to Apple. That's more sales than Dell's
Then again, we're still early in the tablet-hype cycle, so don't take industry future sales guestimates as gospel yet.
Read all about fellow Fool Rick Munarriz's take on a recent iPad competitor's not-quite-true tales of success.
The biggest Apple news you'll ever see! Or not …
Apple titillated the masses this week with a teaser of huge iTunes news. In the end, the announcement was relatively mundane: Britain's Fab Four, The Beatles, would finally be coming to iTunes. This is pretty immaterial news for a company spinning out $20 billion in sales a quarter, but all the speculation over the announcement did highlight iTunes' deficiencies in several key areas.
The most glaring omission from iTunes is its lack of cloud-based streaming or music-storing options. Google
NVIDIA gets back in the high end
Although graphics cards are synonymous with video games, they're also essential for power users of photo and video editing and 3D modeling programs. NVIDIA has a strong advantage in that certain features of Adobe's industry-standard Premiere suite work only on NVIDIA processors. Meanwhile, even though NVIDIA lost out on its desktop presence on Apple machines, the company scored on Apple's new MacBook Air. The cheaper cards seen in laptops don't provide nearly the revenue (or margins) of higher-end desktop cards, but NVIDIA investors have to take some solace with that recent win. But graphics-card dominance shifts back and forth quickly in certain segments, so AMD's continuing desktop dominance is hardly assured.
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Eric Bleeker owns shares of NVIDIA. Google is a recommendation of Motley Fool Inside Value and Motley Fool Rule Breakers. Apple and NVIDIA are Motley Fool Stock Advisor picks. The Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.