Report: Non-Apple Tablet Makers Faced With Excess Inventory

[accadacca]

One of my designers here at work tried to go buy an iPad today during lunch. He first went to Best Buy and they were sold out. So he called Target, Radio Shack and even the Apple Store. All were currently out of stock. He ended up coming back to work and ordering it on apple.com. He will get it in about 2 weeks. We were surprised that he couldn't find one when the iPad came out on March 11th! It has been nearly 2 months and the demand it still very strong!

If you want to buy a tablet this year you might wait until Q3 or Q4. There could be some serious sales going on around the holidays.

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By Leslie Horn



pcmag.com - This year has brought a number of tablets, with the launch of products like Motorola's Xoom, RIM's BlackBerry PlayBook, and of course, Apple's iPad 2. The iPad has clearly dominated the market, and by contrast, other tablet makers have experienced lackluster sales which could lead to another problem: excess inventory.

According to a DigiTimes report there is a "high risk" for non-Apple tablet makers because the amount of tablets available far exceeds the demand.

DigiTimes cites "market watchers" who say that in the second half of 2011, there will be more than 10 tablet makers in a market that has a demand for just 20 million units. To put it into perspective, Apple sold 4.69 million iPads in the first quarter of fiscal 2011, a decline from the 7.33 million iPads it sold in the previous quarter. Even so, Apple hasn't been able to keep up for the demand of the device, which is reportedly sold out in many locations around the world. Meanwhile, one analyst estimates that Motorola has sold just 120,000 Xooms at the very most.

After Apple divulged the decline in iPad sales last month, analysts adjusted their expectations for iPad sales. iSuppli slashed an earlier prediction of 43.7 million iPads to 39.7 million. Whether the decline in sales is due to part shortages caused by the Japan earthquake or overall decreased demand for tablets is unclear. But if it's a trend, it doesn't bode well for other tablet makers.

Apple's dominance with the iPad leaves a limited share of the space for other companies to squeeze in with their answers to the iPad. But because the space is limited, those companies are left with excess inventory, DigiTimes said.

In spite of a growing number of tablets hitting the market, DisplaySearch recently predicted that Apple will be the dominant tablet maker through 2012, at which point the competition will only begin to catch up. But it's likely some tablet makers will be weeded out of the race, considering DisplaySearch noted that 19 companies showed of tablets at the Consumer Electronics Show in January.

Source: http://www.pcmag.com/article2/0,2817,2384908,00.asp

[Iceaxe]

All were currently out of stock. He ended up coming back to work and ordering it on apple.com. He will get it in about 2 weeks. We were surprised that he couldn't find one when the iPad came out on March 11th! It has been nearly 2 months and the demand it still very strong!

The earthquake and tsunami have caused a shortage in a lot of japanese products.

[Felicia]

My coworker and I were looking at tablets today. She is not computer savvy. During downtime, she wants something to play card on or a fun app game or two. She does not want Internet service. iPod screen is too small.

Got any suggestions?

[BruteForce]

I prefer my Samsung Galaxy Tab. The only time my iPad2 sees the light of day is when I want to watch a movie on an airplane.

I REALLY, REALLY enjoy using my Galaxy Tab. Yes, I have a Droid Thunderbolt phone, so they mate very well. (had a VZW iphone4g (for about 2 weeks) ) before going back to the Droid platform.

[accadacca]

Got any suggestions?

iPad 2

[Felicia]

iPad 2

No - that's what I want! She has no need for this amount of technology.

Actually, I'm holding out for iPad3 or the first one that has a USB port. (I need a Daddy War-bucks!)

All she needs is a larger screen that plays cards and "cute" game apps.

[accadacca]

In that case a Kindle might be right up her alley. My Dad has one and plays all sorts of card games and stuff. He is always bragging about how much money he has won on Blackjack.

The WiFi Kindle is only $114 on Amazon (have her use this link ): http://www.amazon.com/gp/product/B00...SIN=B004HFS6Z0

[DiscGo]

ASUS EEE Pad Transformer is awesome but unfortunetly it is totally sold out as well (but it has a much smaller supply than iPad of course)

[Felicia]

In that case a Kindle might be right up her alley. My Dad has one and plays all sorts of card games and stuff. He is always bragging about how much money he has won on Blackjack.

The WiFi Kindle is only $114 on Amazon (have her use this link ): http://www.amazon.com/gp/product/B00...SIN=B004HFS6Z0

Thanks! Looks like a good option.

[Felicia]

Thanks! Looks like a good option.

Done - she is not patient, so she got it at Target. Thanks for the help!

I've decided that I want the upgraded Kindle - I guess it is about time I get an Amazon account. *lol*

[DiscGo]

In response to the actual article, it is at least not true of all Android Tablets:
http://www.zdnet.com/blog/btl/asus-f...h-demand/48407