Apple's IPad Continues to Dominate Tablet Market but Competitors Spy Opportunities

When it comes to buying a tablet computer, consumers are interested in two things: price and content. However, despite that, the vast majority of those interested in a tablet only want one -- the Apple iPad -- according to a new study by market research consultancy iGR.

In 2011, Apple sold about 19.63 million iPads in the U.S. The total market in 2011 was just over 28.1 million units. Android-based tablet sales in 2011 totaled approximately 7.7 million -- a substantial number, certainly -- but 47 percent of those sales happened in the fourth quarter and 61 percent of those 4Q sales were generated by Amazon. Put another way, Amazon sold more Android-based tablets in the last two months of the year than any otherAndroid tablet OEM did in all of 2011.

"Clearly, this study shows that the Apple iPad continues to dominate the U.S. tablet market, even after the launch of the Amazon Kindle Fire," said Iain Gillott, president and founder of iGR, a market research consultancy focused on the wireless and mobile industry. "While Amazon has made some inroads into the market, the other OEMs have had little impact to date. That said, there are signs in the consumer base of potential acceptance of alternative platforms. For Apple's competitors, now is the time to rethink the tablet market and attack the opportunity again."

Throughout the forecast period, we expect Apple to continue dominating tablet sales. But we do expect that competing platforms -- Android and Windows -- will sell in significant volumes through 2016. In 2016, for example, iGR forecasts tablet sales in the U.S. to reach approximately 45.3 million. On an OS basis, we are forecasting that Apple will sell approximately 27.3 million tablets in 2016; Android-based tablet sales will reach about 13.9 million.

As compared to the market for smartphones, the current monthly sales of tablets are relatively modest. Our research suggests that tablets are, at present, primarily purchased as an additional computing device, not necessarily a true replacement device. Over the forecast period, this is anticipated to change, creating more market opportunity for tablet OEMs.