After culminating summits of glory with avant garde range of products like iPod, iPhone and iPad, Apple is under fire for its latest salvo-iPad Mini. Touted to be a competitive product before the launch iPad Mini failed to sustain the magic in the press that we saw during iPhone 5 launch. Neither did it impress the investors nor peers who had thought it to be a potential tool to fight against Samsung and Google devices which have eaten into tablet share. Many believe Apple has set its foot into wrong waters by launching iPad Mini.
Priced much high at $329 onwards, the 7.9 inch tablet, research firm IHS tore down the new tablet showing the combined cost of all components used in the new tablet came to $188. Even WSJ in a blog has questioned that “Apple could end up targeting a narrower segment of the fast-growing tablet market.” The journal has further raised question if Apple’s dominance in tablets is nearing an end.
The company’s future seems largely threatened by an onslaught of cost-efficient, powerful, sleeker devices from Samsung, Amazon, HTC and others in local markets of different geographies. What is a cause of the concern for investors is the declining marketshare in September quarter. As per IDC, Apple’s share of the tablet market dropped sharply to 50.4% from 65.4% in the previous quarter. In this quarter, all other vendors of tablets including Samsung gained marketshare. Samsung’s share jumped to 18.4% from 9.4%. Even Amazon, that sells Kindle Fire tablets, stood at #3 with 9% share. The IDC data is an obvious indication of an era, ruled by Apple, coming to an end.
Undoubtedly iPad Mini was the hope to stand against the burgeoning brigade of tablets from competitors. But the price it was launched at diminished all hopes. Therefore, the next step for Apple should be to ponder on its strategy and come out with products that unleash havoc on the competition.