Apple bruised as shoppers choose cheaper tablets over iPad

LONDON — It may come to be remembered as the year that tablet computers became mainstream, but with a slew of cheaper tablets on the market — some on sale for as little as £30 (S$62) — 2013 may also be remembered as the first year that Apple’s iPad no longer dominated sales.

In the United Kingdom, the iPad captured 38 per cent of the market in the first three quarters of this year, compared to 56 per cent for tablets powered by Google’s Android software. Google’s £200 Nexus 7 kick-started the trend towards more affordable tablets.

UK supermarket chains Tesco and Argos this year introduced their own Android tablets for under £120. And last week, the Indian government launched the Datawind UbiSlate at only £30 in the UK as part of an educational initiative.

In comparison, Apple’s iPad Air costs £400 and the iPad Mini £320.

“The very-low-end tablet market saw very strong sales this year, which is something we’re expecting to continue into next year and beyond — especially for the Christmas period,” said Mr Francisco Jeronimo, Research Director at data analysts IDC.

“Tablets under £100 have excellent gifting potential this Christmas period,” he said. “Parents looking to give gifts to children and teenagers are unlikely to spend £400 to £500 on a tablet.”

Of course, the sales numbers do not tell the whole story. With around 2.9 million iPads shipped in the first three quarters of the year, Apple claimed the high-revenue, premium end of the market.

The software and media ecosystem on the iPad is arguably crucial to its bottom line, too. “Users who buy an iPad also spend much more money on apps and media within the Apple App Store and iTunes,” noted Mr Jeronimo.

Next Christmas, however, another wave of cheaper and even faster tablet computers is likely to be in the shops, he said. “In the short term, the downward trend on price will definitely continue and increasing tablet penetration will be fuelled by adoption in education and business, as well as by consumers.” THE GUARDIAN