• Report: iPad More Important Than iPhone in Preserving iOS Market Share

    Bernstein Research’s Toni Sacconaghi reported Wednesday that Apple's iPad may prove more important than the iPhone to the lasting growth of the iOS ecosystem. Specifically, the analyst believes that the iPad's pricing and distribution are stronger than the iPhone's.

    Sacconaghi, who has an Outperform rating on Apple shares, and a $725 price target, writes that Android has gone from zero market share to “nearly 70%” of the smartphone world in five years, while Apple’s iOS operating system, has gone from 9% to 19% in the same time.
    "We see several differences between Apple’s approach to the smartphone and tablet markets," Sacconaghi revealed today, according to coverage from Barrons. "The iPhone left a price umbrella for other smartphone vendors to offer cheaper unsubsidized smartphones, even at the premium end."

    In the race for tablet supremacy, however, the iPad represented a different reality. "Apple did not leave a similar price umbrella under the iPad," Sacconaghi says. "In fact, the iPad was cheaper than tablets with inferior features when it was first released. Now there are competitive Android tablet offerings at lower price points, especially because competitors such as Amazon and Google are aggressively pricing hardware in as their businesses makes gross profit on content and search, respectively."

    "On balance, we believe that these factors suggest that Apple may be able to sustain higher unit share in the tablet market that in smartphones," the analyst concludes, "particularly given Apple’s apparent willingness to offer lower priced devices such as the Mini."

    To read more of Sacconaghi's report and corresponding projections, click here.

    Source: Barron's
    This article was originally published in forum thread: Report: iPad More Important Than iPhone in Preserving iOS Market Share started by Michael Essany View original post
    Comments 7 Comments
    1. jOnGarrett's Avatar
      jOnGarrett -
      we'll see how this all pans out with the upcoming Nexus "7" device and Amazon's next offering. I dont understand though why more people prefer smaller tablets than big ones. 7" tablets are more portable I suppose but 10.1 tablets are NOT big by any standard.
    1. King_O_Hill's Avatar
      King_O_Hill -
    1. 2k1's Avatar
      2k1 -
      So don't feed him then
    1. Rcworship's Avatar
      Rcworship -
      That's offensive to the Scandinavians!
    1. I_ssan's Avatar
      I_ssan -
      7" for portable, 10" as desktop replacement. That is my next buy
    1. kalpesh78's Avatar
      kalpesh78 -
      I need a 17 inch tablet apple. I need to show my portfolio and photographs to my clients. When you coming up with that?
    1. johnsmith01's Avatar
      johnsmith01 -
      Yes, ipad is very important device from iphone.Because too much applications are use in ipad rather then iphone.And its also usually use as a notebook for official working.
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