Android Tablets: bizarre

[jocampo]

Is Tim Cook afraid of Android? You judge: http://www.androidcentral.com/androi...pples-tim-cook

[RockdaMan]

Without reading the link, I think that his words will be taken out of context.

Edit. Yup, I was right. And there is no fear expressed in his statements. I'd note too that Apple plays the press as well as any politician. His 'bizarre' statement is playing in the tech press like the 'blood label' label played in the mainstream press last week.

Here is a more forthright take on his words:

On today’s Apple earnings call, Cook characterized the competition as falling into two buckets: Windows-based tablets, which are “big, heavy and expensive” and suffer from “weak battery life,” and current Android tablets, which are “scaled-up” smart phones.

Here is his response to the question, based on MG’s notes:

Q: What about iPad competitors?

TC: There’s not much out there as you know. There are two kinds of groups today (in the market) — the ones using a Windows-based operating system. They’re big, heavy and expensive. Weak battery life. Need keyboard or stylus. From our point of view, customers aren’t interested in that.

Then you have the Android tablets. The variety shipping today, the OS wasn’t designed for a tablet — but Google said this. So you wind up having the size of a tablet that’s less than reasonable. Or one that’s not even a real tablet experience. It’s a “scaled-up smartphone” – that’s a bizarre product in our view. Those are what is shipping today. If you do a side-by-side with an iPad, some enormous percentage are going to pick the iPad. We have no concern there.

In terms of next generation. There’s nothing shipping yet. So I don’t know. “Today they’re vapor.” However, we’re not sitting still. We have a huge first-mover advantage. And a huge user advantage from iTunes to the App Store. Huge number of apps and an ecosystem. We’re very confident entering into a fight with anyone.

[boswd]

hmmm usually when people make snarky remarks, it normallly coming as a defense mechanism.

I can't believe I'm saying this but I agree with Joe here

[SCION]

Originally Posted by boswd

hmmm usually when people make snarky remarks, it normallly coming as a defense mechanism.

I can't believe I'm saying this but I agree with Joe here

[HansTWN]

Funny he should mention "scaled-up smartphone" when Apple invented the concept with their iPad. The iPad was the first tablet that wasn't a computer, but was and still is running an OS designed for phones, that even needs a computer to set it up and sync with.

I guess Apple is really getting scared. And the latest rumors say that the iPad 2 is not even getting a retina screen upgrade -- in that case they will get swamped by the competition even much earlier than I anticipated. My original guess was that within 2 years the Ipad will only have 20% of the tablet market. With a retina screen at least they would have some real world advantage to compensate for the Apple lock down, hardware deficiencies, and inflated prices to get them through 2011 on top.

[RockdaMan]

Originally Posted by HansTWN

I guess Apple is really getting scared.

I'd like a serious explanation of what Apple has to be scared of. Android may indeed eventually sell more tablets, but they will never rip away the part of the market that Apple currently has. Android phones have sold like gangbusters, but Android phones have not yet caused any erosion in the core market that Apple is selling iPhones to. Apple iPhone sales increased in the last quarter. Until Google causes some erosion, I don't think Apple will worry.

So, once again, I just don't understand what Apple has to be scared of. Someone, please, explain it to me.

[boswd]

Originally Posted by RockdaMan

I'd like a serious explanation of what Apple has to be scared of. Android may indeed eventually sell more tablets, but they will never rip away the part of the market that Apple currently has. Android phones have sold like gangbusters, but Android phones have not yet caused any erosion in the core market that Apple is selling iPhones to. Apple iPhone sales increased in the last quarter. Until Google causes some erosion, I don't think Apple will worry.

So, once again, I just don't understand what Apple has to be scared of. Someone, please, explain it to me.

Though scared or worried may be a bit of a premature overstatement, but are they concerned and watchfull? You bet.

Just as I don't think Amazon is worried that Barnes and Noble and the nook are going to overtake their market share anytime soon, you can bet the farm they have them under a huge microscope watching every move. You don't think it's coincidence that within hours of the nook's price being lowered to $199 and the introduction of a wi fi only at $149 was followed up by Amazon only hours later announcing their price drop to $189 and then release their own wi fi only later on, do you? Heck no, I'm sure they are closely watching the sales of the nook color and see how where that trend leads to. Don't be shocked if there isn't a touchscreen kindle sooner rather then later.

But back to Apple

you have to remember the tablet market is virtually untouched. While the iPad may have over 80% of the market right now. What % is that of the total population? Very small.

you start to see solid performing high end and mid to low end tablets that are aggressivly priced, that will take away from potential future sales and a growing market share.

You are right in case of Apple people, they will buy an apple product no matter what. But not everyone is an Apple fanboy. Many of the people who own an iPad now own them because they are the only true high end perfoming tablet on the market right now, no offense to the Samsung Tab, which is a high end performer but it isn't the best of what Android can offer. We'll see that in near future. so these people are potential ship jumpers if they want to upgrade

If they really weren't concerned with what Android was coming out with , the comment would not have been filled with snarky remarks. They're snarky for a reason. They hope people will take those comments as Gospel and run with them creating a negative perception of Android Tablets and hopefully have that engrained in a consumers head when thinking of which table to buy.

If not worried there would be no comment .

[RockdaMan]

Originally Posted by boswd

in case of Apple people, they will buy an apple product no matter what.

Not with the iPhone. The size of the user-base is so large that common people have to like the phone to have upgraded through several generations as they have done.

[boswd]

Originally Posted by RockdaMan

Not with the iPhone. The size of the user-base is so large that common people have to like the phone to have upgraded through several generations as they have done.

you also have to remember you are under contract with your carrier so changing is bit of a hassle and outside of the iPhone At&t's offering of high end smartphones was paltry at best. Up until the Samsung Galaxy Phone's they had no high end Android phones.

I owned the frist iPhone and only upgraded to the iPhone 3GS, back in the day the only other smartphone was the blackberry (original smart phone)
Once I started to see the Androids getting better and even surpassing the iPhone in total features, I just bidded my time and when my contract was up I jump on the Droid X and could not be happier. (At&t service was actually very solid in my area, comparable to Verizon but I really liked the Droids better) and IMHO it's by far and away a better phone. but that is me.

Don't get me wrong, I don't discount the following apple has built up and it's perception around it's products and where it falls on the average consumer. But Android has caught up and the tablet is still uncharted territories in the grand scheme of things in terms of total consumers owning a tablet.

[HansTWN]

Originally Posted by RockdaMan

I'd like a serious explanation of what Apple has to be scared of. Android may indeed eventually sell more tablets, but they will never rip away the part of the market that Apple currently has. Android phones have sold like gangbusters, but Android phones have not yet caused any erosion in the core market that Apple is selling iPhones to. Apple iPhone sales increased in the last quarter. Until Google causes some erosion, I don't think Apple will worry.

So, once again, I just don't understand what Apple has to be scared of. Someone, please, explain it to me.

Apple will soon be reduced from being a market leader in tablets to about the market share they have in PCs. Their sales growth will be severely stunted once the serious competition comes out in full force. And thus they will make a lot less money and they will fall behind the curve on function and features, just as they have on phones. Instead of being the only game in town, the Ipad will once again only be for their fanbase, technophobes, and fashionistas.

Simply put, Apple will make a lot less money -- and it will be a lot more difficult for them. One big problem is that Apple offers no choices -- it is also their big strength but it limits their wider appeal, one size just doesn't fit all. So I think Apple will quite soon reach the market share ceiling in their existing product lines. They have been riding a wave, but going forward times will get tough. Google is coming at them from all sides, GoogleTV, the Chrome laptops, and new functionalities that Apple just can't offer.

Sure, Google doesn't make any money on Android directly, but Apple will get swamped. And Apple has a lot more at stake here. Did Android cause any erosion in Iphone sales? Yes and no. Sure, sales are still going up, but where would the Iphone be today if not for Android? You can't seriously argue that Iphone sales wouldn't be much much higher without Android. Remember, even Blackberry unit sales are up -- but market share is sinking. And Android sales are increasing at a much faster rate than Iphone's.

Besides, it is not just Android. For tablets there will be WebOS and Windows tablets will get their act together, too. For phones Microsoft is tough, too. They will make WM 7 work, no matter what it takes.

Apple is a well run company and as great as things seem at this very moment, you can see the dark clouds of extremely strong competitive threats ahead. Therefore they must be worried, a freight train is coming right at them.

[RockdaMan]

Originally Posted by HansTWN

Apple will soon be reduced from being a market leader in tablets to about the market share they have in PCs.

No disrespect, but

[=X=]

Originally Posted by RockdaMan

So, once again, I just don't understand what Apple has to be scared of. Someone, please, explain it to me.

Well lets see in less than a Year iPhone was 2nd only to RIMM and it was obvious they would soon overtake them. They where far ahead of any competitor and controlled the market. So ahead they imposed ridiculous constrains on users and developers.

Android has now surpassed them in a market that is growing. Apple in a response to that threat has seriously relaxed their grip and reverted a lot of their had line stands.

80%s of the iPhone sales where returning customers. That's a 20% good but on the Android the vast majority are new customers. Android is now activating 300,000 devices a day.

Last point the market is growing, so every device will grow RIMM, iPhone, and Android. But most iPhones sales are returning customers Android and as the market continues to expand Android continues to takeup more market shares while iPhone and RIMM decrease, even though they are selling more devices than they use to.

Yes they are scared it's foolish not to be.

=X=

[=X=]

Originally Posted by boswd

Just as I don't think Amazon is worried that Barnes and Noble and the nook are going to overtake their market share anytime soon, you can bet the farm they have them under a huge microscope watching every move. You don't think it's coincidence that within hours of the nook's price being lowered to $199 and the introduction of a wi fi only at $149 was followed up by Amazon only hours later announcing their price drop to $189 and then release their own wi fi only later on, do you? Heck no, I'm sure they are closely watching the sales of the nook color and see how where that trend leads to. Don't be shocked if there isn't a touchscreen kindle sooner rather then later.

B&N entering the market has been the best thing to happen for Kindle customers. They have forced Amazon to react to B&N who has put pressure on them since they entered.

It was B&N (Fictionwise really) who developed apps for devices. When B&N launched their eBook platform and released their Windows, Macs, Winmo, BB clients they had access to millions of customers. Amazon had to respond by opening their store to non eInk Kindles.

When B&N dropped their eInk prices Amazon also had to respond.

Now that B&N has released a color eReader, you will see Amazon will soon release their model.

[RockdaMan]

Originally Posted by =X=

on the Android the vast majority are new customers.

Can you back this up?

I'll remind you of the most recent Apple quarterly call:

Demand for the iPhone 4 is still outstripping supply. They can’t make them fast enough, and haven’t even launched on Verizon yet.

[RockdaMan]

Originally Posted by HansTWN

I think Apple will quite soon reach the market share ceiling in their existing product lines. They have been riding a wave, but going forward times will get tough. Google is coming at them from all sides, GoogleTV, the Chrome laptops, and new functionalities that Apple just can't offer.

First: What new functionalities would Apple not be able to offer?

That said, I'll make a quote of something I read earlier this month:

Apple is the leading PC maker in the world, by profit. And their market share has gone up for 19 consecutive quarters, and continues to outpace the industry as a whole. Apple’s “niche” in the PC market today is that for profitable computers.

The worst years for Apple’s PC business occurred when Apple was the least control-freakish: when they offered a plethora of hardware models (Performas, Centrises, Quadras) and even licensed their OS to clone makers.

Why did I quote this? To press the point that Apple is an elite business. It doesn't matter what the competition does, Apple always finds a way to excel. There is nothing new in the Google/Android HP/WebOS RIM/Playbook race that is so dfferent that we can can say Apple will might be in bankruptcy a decade from now The PC companies had the best shot at doing it, and Apple outperformed them. It's much more likely that they'll be in the same position they are in now: reaching markets first, getting an irreplaceable grip on the most valuable parts of those markets, and leading the rest of the companies in profit and mindshare.