Android Tablets Gain Momentum in the Third Quarter, Expectations Remain High for the Holiday Quarter, According to IDC
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Chicago, IL; Houston, TX; Los Angeles-Long Beach, CA; New York, NY; Washington, DC (PRWEB) November 13, 2012
In a recent Profit Confidential article, contributor and financial expert Sasha Cekerevac reports that International Data Corporation (IDC) recently released a report stating that Apple’s market share in the technology sector was only 50.4%, versus just under 65.5% during the second quarter of 2012. (Source: “Android Tablets Gain Momentum in the Third Quarter, Expectations Remain High for the Holiday Quarter, According to IDC,” International Data Corporation, November 5, 2012.) According to Cekerevac, this drop in market share indicates that Apple is now playing catch-up with competing technology stocks.
“For a long time, Apple had a strong investment strategy built on the fact that it was introducing revolutionary products to the market,” notes Cekerevac. “Over the last year, its products have actually been playing catch-up with the products of other technology stocks that have introduced new leaps in innovation.”
In the article “Apple’s Shocking Drop in Market Share; What It Means for the Stock,” Cekerevac states that the high price for the “iPad mini,” Apple’s newest tablet, will open the door for other technology stocks to continue building on their market share gains.
“With the investment strategy of premium pricing to maintain high margins, Apple is making a risky bet that consumers are willing to be locked into its ecosystem and pay a premium to do so,” the Profit Confidential expert explains.
Cekerevac reasons that with other technology companies creating products that are comparable to Apple’s but with lower price points, this is becoming an increasingly risky bet for the technology giant.
With technology companies coming out with even better products over the next couple of years, Cekerevac sees the landscape becoming far more commoditized, with more choice for consumers and lower profit margins for all technology stocks in this sector.
“For Apple to maintain its share price, it [needs] to turn this negative trend around,” Cekerevac concludes.
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