Is Apple Really Dominating the Tablet Wars?

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Sept. 26 (Bloomberg) -- Horace Dediu, managing director/founder at Asymco and Carlos Gutierrez, former U.S. Secretary of Commerce, examine the competition in the tablet market. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

They can put a dent in the apple dominance?

They have bad visibility but when you look at the numbers, apple has not had the market share leadership for the last few quarters.

There has been a huge surge in android devices.

Android is fragmented.

Amazon runs on android.

What can blackberry do?

Don't they have to have a massive move with rebranding?

In the tablet space they tried and completely failed and exited that market and they wrote off a lot of inventory.

On the device side, that will happen again on the phone side but their service business.

I think that will be the emphasis for the new investors.

You are more qualified to talk about disruptive.

What is the disruption in the tablet business?

The category of tablets is disruptive to pc's. this will be the first year we will see tablets outselling pc;'s and they are being used increasingly for the same jobs.

Put your toy up to the camera.

This is a mini-ipad which is a year old.

When you put the new iphone5s in that toy, what happens to apple?

If this thing becomes more like a computer, you will see more productivity apps.

At the apple launch of the latest iphone, they announced the iworks suite which is comparable to microsoft office, that will be free on all new devices from apple.

That's an amazing story for people who want simple word processing and spreadsheets and presentations.

It is mobility.

The idea sitting in one place with the computer is moving into the past.

Are the customers widely adopting tablets?

Absolutely, it started with ceos and high level executives at meetings to look at their notes but increasingly, the productivity side of these products is becoming evident.

That's when microsoft that -- that's why microsoft is keen on this project -- product.

They decide to become a maker of tablets themselves.

They bought nokia to help them in that class.

Microsoft is nowhere near one of the big players.

If you look at it chart of the top five tablet makers, it's not in that category.

Apple still leads the way but the apple market share has declined to 32% this year from 64% last year.

Does samsung lead in terms of innovation?

The problem with android tablets is it is not as consolidated around samsung as in the phones so we have a lot of no name brands flooding asian markets.

We see those tablets used as browsing devices.

They are not used as app platforms.

The big companies are trying to be platform players.

We talked about the hardware side but the real question is ecosystems.

It's why microsoft buying -- got into buying nokia.

Perhaps amazon is not trying to take market share from apple and ipad but get able to buy books and video.

The purpose of the tablet for amazon is to drive foot traffic.

Think of it as a retailer.

That's why they sell it close to cost.

Exactly, microsoft, apple, and amazon have different business models.

Microsoft wants to sell its core software franchises through new hardware and amazon has a service business.

The apps are unique to the company?

Amazon is using android but they are adapting the platform a little bit so not all apps that run on samsung can run on amazon.

They need to make a few tweaks.

Planned obsolescence is part of the apple strategy.

If people use tablets mainly to browse and the hardware is less important, what is the outlook for people having to replace their ipad?

The android tablets are much more likely to be used for rousing and not apps.

Apple is encouraging people to use apps and that's why they add more horsepower to the developers so it entices developers to make more powerful apps and there is innovation there.

The apple strategy is different.

Think of the console business.

It lasts for seven years and that would be amazon's preferred strategy.

They would love to have the device sold a low margin in the hands of the consumers as long as possible because that is better for them in terms of getting the lowest cost traffic.

It comes down to the apple profit margin.

Great conversation on the new tablet.

We will see if anyone buys the new microsoft and amazon tablets.

Coming up, how angela merkel's election may change the course of the european economy.

We will talk about germany's vision for europe.

?

This text has been automatically generated. It may not be 100% accurate.

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