This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Apple Really Built the iPad Mini

NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) has enjoyed dominance in the tablet market like very few companies have, thanks to the iPad. That dominance is waning however, as more Android tablets come on line.

New analysis from research firm IDC revealed that Apple's market share of tablets fell dramatically from the second quarter to the third quarter, as rival Samsung experienced strong growth, nipping at Apple's heels. Samsung saw 325% growth year over year, while Apple experienced 26.1% growth in the market.

Apple's trump card to regain market share is the 7.9-inch iPad Mini, which it announced at the beginning of October. Apple announced Monday it has already sold 3 million iPads since the iPad Mini and fourth-generation iPad were launched, so it appears the device is off to a strong start. This comes despite efforts competitors such as Amazon (AMZN - Get Report) and Microsoft (MSFT - Get Report) taking shots at the device.

Apple still owned 50.4% of the tablet market as of the end of the third quarter, though that's down from 59.7% in the year-earlier time frame, and 68% in the second quarter. Overall, the tablet makers shipped 27.8 million during the third quarter, including the 14.1 million Apple sold.

"After a very strong second quarter, Apple saw growth slow as both consumer and commercial (including education) shipments declined, and rumors of a forthcoming iPad Mini began to heat up," said Tom Mainelli, research director of tablets at IDC, in the press release. "We believe a sizeable percentage of consumers interested in buying an Apple tablet sat out the third quarter in anticipation of an announcement about the new iPad Mini. Now that the new Mini, and a fourth-generation full-sized iPad, are both shipping we expect Apple to have a very good quarter. However, we believe the Mini's relatively high $329 starting price leaves plenty of room for Android vendors to build upon the success they achieved in the third quarter."

As more consumers look for increased portability with their tablets, 7-inch models have demonstrated to be a strong segment, with Google's (GOOG - Get Report) Nexus 7 receiving positive reviews. Google recently announced the Nexus 10, as it tries to compete with the larger 9.7-inch iPad.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 -0.13%
AMZN $437.71 0.07%
GOOG $523.40 0.30%
MSFT $44.40 -0.10%
FB $87.28 0.43%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs