iPad Sales Have Reached a Plateau

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The gadget is a hit, but its share of the market for tablet computers fell sharply last quarter, as Android devices surged.

The numbers are deceptive.

Apple shipped 20 percent more iPads in the past three months, PC World reports. But a report Friday from Strategy Analytics showed Apple's market share for tablet computers fell from 96 percent to 67 percent. Android devices are closing in on one-third of the market, at 27 percent.

The upshot is likely a price-cut for iPads, to stay competitive with devices like Amazon's Kindle Fire, which will retail for $199.

So if Apple wants to compete in that mainstream market, Mainelli maintained, it's going to need to augment its media tablet lineup with lower-priced products. That doesn't necessarily mean introducing something like a seven-inch iPad, as has been suggested by some observers. Apple can simply adopt the strategy it has used for its iPhone lineup, Mainelli noted.


"Lower-priced iPads would increase Apple's total available market, and would give competitors already reeling from Amazon's $199 product announcement yet another reason to lose sleep at night," he added.

This article is from the archive of our partner The Wire.