Apple's tablet rivals told to wise up on pricing

Strategy Analytics data reveals iPad held 67 per cent market share in Q3 as competitors continued to overprice their devices

Apple iPads accounted for two thirds of tablet shipments in the third quarter of 2011 as Android-based rivals struggled to perfect their pricing strategies.

According to research house Strategy Analytics, global tablet shipments surged by 280 per cent year on year to 16.7 million in the three months to 30 September.

Apple's market share fell from 95.5 per cent to 66.6 per cent on an annual comparison as iPad shipments rose from 4.2 million to 11.1 million.

Android-based devices, including those made by Samsung and Acer, now command 26.9 per cent of the market, up from 2.3 per cent a year earlier, as shipments rose from 0.1 million to 4.5 million.

Microsoft-based tablet shipments rose from nothing to 0.4 million units, equating to 2.4 per cent market share.

Peter King, director of tablet and touchscreen strategies at Strategy Analytics, said iPad shipments had slightly exceeded his firm's forecast for the quarter, despite Apple missing its fiscal Q4 numbers.

Most Android-based rivals have yet to perfect their pricing strategies, he added.

"We will see some movement on pricing going forward which will strengthen Android's cause," he told ChannelWeb.

"When Amazon Fire (pictured) was announced [at a price of $199], it certainly made the tablet world sit up and take note. Until now, most Android-based OEMs have come in and priced where they felt comfortable, at the same price as or just below the iPad. But the chasing pack has to get more realistic on pricing."

Microsoft will also take market share from Apple next year after it launches its Windows 8 platform, King added.

"But Apple will remain dominant for the next three or four years," said King.

Less than 10 per cent of tablet shipments are currently intended for business, he added.