Apple IPad Rivals Don’t Hold More Than 5% Share, Forrester Says

Apple Inc. (AAPL), set to release a new iPad tablet tomorrow, doesn’t have an Android-based competitor with more than 5 percent of the market, Forrester Research Inc. said in a report published today.

Apple, based in Cupertino, California, controls 73 percent of the market, while Samsung Electronics Co. (005930), Sony Corp. and Toshiba Corp. are among companies making incremental improvements to tablets without bringing services that cut into the market share, Sarah Rotman Epps, an analyst at Forrester, said in the report.

Android-based tablets have been priced in the same range as iPads with inconsistent branding, Epps also said. Amazon Inc.’s Kindle Fire and Barnes & Noble Inc.’s Nook tablets may vie for second place because they build features on top of Android without using the brand and sell for a lower price, she said.

“Tablets are about services,” Epps said in a telephone interview yesterday. “That is where Amazon has succeeded where others have failed.”

When Forrester (FORR) carried out its survey in September, Hewlett-Packard Co. was in second place to Apple with 6 percent of the tablet market, followed by Samsung Electronics Co., Motorola Mobility Holdings Inc. and Acer Inc., with 5 percent, 4 percent and 3 percent respectively. HP cut the price of its TouchPads to $99 before it stopped selling them.

Photographer: Justin Sullivan/Getty Images

An Android tablet is displayed during the 2011 Intel Developer Forum at Moscone Center in San Francisco, on Sept. 13, 2011. Close

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Photographer: Justin Sullivan/Getty Images

An Android tablet is displayed during the 2011 Intel Developer Forum at Moscone Center in San Francisco, on Sept. 13, 2011.

About one-third of the U.S. adult population will own a tablet by 2016, as more people bring them to their workplaces, according to Forrester. The majority of tablets used for work are paid for by the employee, the research company also said.

‘Growing Faster’

“This market is growing faster than we expected -- faster than anyone expected,” Epps said.

In September, before Amazon (AMZN)’s Kindle Fire was released, 24 percent of consumers surveyed said they would buy a tablet made by Amazon, compared with 61 percent who said they would buy an iPad and 21 percent who said they would buy a Samsung tablet, Forrester said.

Apple is expected to release an iPad with a high-definition screen, a faster processor and compatibility with next- generation wireless networks, people familiar with the product said in January.

To contact the reporters on this story: Sarah Frier in New York at sfrier1@bloomberg.net;

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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