The Tablet Market Keeps Behaving The Way We Expect

Tablet ASPHere are our projections for tablet prices (Click to read report)

Photo: Business Insider Intelligence

There were no real surprises during Apple’s iPad announcement: it was a refresh, with a “retina” (i.e., very high resolution) display, 4G and slightly better stats overall, at the same price. The biggest announcement had nothing to do with the new iPad, but with the old one: the iPad 2 will now sell for $399.

This is a crushing blow to all tablet makers not called Amazon: they couldn’t make a tablet to rival the iPad 2 for $500, so $399 will be even harder. There is still a market (though smaller) for the $199 Kindle Fire, and potentially a $299 iPad-sized version of the Fire, which is rumoured to be in the works, but even Amazon should feel the heat.

And it confirms what we believe is the broad overall direction of the tablet market, which is lower prices and ubiquity. We forecast that the market will reach 500 million units by 2015, which is significantly more bullish than most other analysts we’ve seen. 

MORE:

  • Here is our note from yesterday on the market ahead of the Apple announcement →
  • Here is our tablet market forecast →
  • Why we’re bullish on the Kindle Fire →

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