A Tale of Two Tablet Tiers

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Despite previous predictions of Apple gradually losing share in the tablet market, the iPad continues to dominate-- taking over 88% share of the Q4 2011 W. European tablet market according to CONTEXT.

ipad KindleIn comparison the iPad's Q3 2011 market share totals 76%.

As a result the analyst predicts such a trend is a "precursor to a two-tier industry" based on pricing-- with luxury brands (chiefly iPad) at one end and cheap-and-cheerful devices (such as the Amazon Kindle) on the other.

CONTEXT says customers want devices with "integrated and reliable" platforms-- something Windows 8 promises to deliver, resulting in some success for traditional PC vendors stepping into tablet territories. Vendors might also find success with hybrid tablet/laptop designs (like the Asus Eee Pad Transformer), particularly within the enterprise segment.

Go CONTEXT Sees Emergence of Two-Tier Tablet Market