Steve Jobs had it wrong: people do want smaller tablets after all. CNET points us to a note written by Citi analyst Glen Yeung making the case that the market for larger tablets such as Apple’s 9.7-inch iPad has peaked and that more compact tablets such as the 7.9-inch iPad mini and the 7-inch Google Nexus 7 will be the dominant form factors going forward. Yeung thinks that while Apple will still be a major player in the market for smaller tablets, the company’s profits will still take a hit since the cheaper iPad mini generates smaller gross margins than the traditional iPad. “Beyond simply the overall share loss, the data reveals a particular slowdown in 10-inch iPad sales in mature markets and a clear downward trend in tablet ASPs (average selling prices),” Yeung writes. “After analyzing the data, we have new concerns about the health of the 10-inch tablet market and, absent any material innovations (we do not count a Retina Mini or lighter/thinner iPad 5 among these), we remain concerned about Apple’s ability to maintain market share.”
About Shelly Palmer
Named one of LinkedIn’s Top 10 Voices in Technology, Shelly Palmer is Managing Partner at Palmer Advanced Media, a technology-focused strategic advisory practice that helps Fortune 500 companies and growth-stage companies with digital strategy, data science, marketing, branding, and business development. He is Fox 5 New York's on-air tech and digital media expert and a regular commentator on CNBC and CNN. @shellypalmer or visit shellypalmer.com.
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"Are the Full-Sized iPad’s Best Days Behind It?" by @ShellyPalmer
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