Earlier this week, Acer Chairman JT Wang made the bold if foolish statement that the market share of the Apple Inc. (NASDAQ: AAPL) iPad would fall to 20 percent over the next few years. Tech research firm iSuppli says that is nonsense.
The tech researcher says that Apple will “maintain a dominant share in the tablet market at least through 2012.” While market share decline is inevitable, Apple’s share of shipments will slip only to 61.7 percent by 2012 from 70.4 percent in 2011. That’s hardly going to keep Steve Jobs up nights as Apple fans — myself included — are willing to pay premium prices for the company’s products.
“Although the iPad has been on the market for only a few months, powerful interests throughout the technology business are devoting enormous resources to challenge and topple Apple’s domination in this fast-growing marketplace,” said Rhoda Alexander, director of monitor research at iSuppli, in a press release. “However, if recent history is any lesson, it will take some time for these companies to get their products to market, longer for them to offer necessary software support and infrastructure, and an even lengthier period to begin to rival the overall user experience Apple is able to deliver.”
Indeed, many lower-priced rivals have plenty of problems of their own. Not only is Apple squeezing them on the high-end, but netbooks are hurting them on the low-end as are smartphones. Then there are the safety issues.
For instance, Acer recalled 22,000 Aspire notebook machines in January because a defective wire was causing them to catch fire. Sony Corp. (NYSE: SNE) issued a similar recall of 500,000 machines in June. Hewlett-Packard Co. (NASDAQ: HPQ) reported a similar problem last year.
Apple’s dominance in whatever market it chooses to enter is only going to be interrupted by the next product from — you guessed it — Apple.