Reports are surfacing that the demand for tablet platforms such as the Apple Ipad and Motorola Xoom has stagnated. The reports published by the FT reported that shares in Arm Holdings (the maker of tablet components) had dipped due to the drop in demand. The cause of this dip is quite ironic as analysis shows that the dip in demand is potentially being caused by lack of competition in the market place.
Expectations in the market place were very high after the launch of the Apple Ipad with predictions stating that many other manufacturers would follow suit and launch their own tablet. However this has not been the case and therefore the demand for components has not materialised. This drop in expected demand has forced the dip in Arm Holdings shares by 9%.
The market share held by the tablet form is still extremely small however as there was a lot of market buzz around the format share prices and forecasts seem to have been handsomely over estimated. The launch of the Apple Ipad hailed a new age in portable computing and media however the price tag has put off the product to the mass market.
However sales are strong and a few other manufacturers have tested the market. The market is bracing itself to hear the final results of demand and orders placed for components as there is real hope for this emerging niche. The Apple Ipad is now available in many forms such as differing memory size and with of without 3G.
The Ipad is still seen as a luxury and many people are purchasing the much cheaper Amazon Kindle which is available at around 110-150. Whilst the kindle is no match for the Apple Ipad in its design or features it is a very practical solution for many people, and the price tag is very powerful and is attractive to a much wider market.
We will keep a close on the market to see if any further news is released. We hope the tablet market increases its strength in 2011 as we are sure the technology can move forward and amaze us even further than it does now.