Tablet Wars Heat Up as Apple Upgrades iPad Lineup

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Oct. 22 (Bloomberg) –- Investment Partners Asset Management Co-Principal Gregg Abella and Engadget Senior Associate Editor Michael Gorman discuss Apple’s iPad lineup. They speak with Erik Schatzker and Stephanie Ruhle on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Apple?

Is it making sure the ipad is the best they can possibly be, or are they generally -- genuinely worried about the competition?

They are worried about accommodation but with market share they should not spend too much time worried about that specific piece.

There was discussion about the 60% market share.

Now they're down to 32% market share, but they are still growing and at the high end of margins.

I would not follow samsung and other companies into the black hole of low margin cost products.

Can apple resisted the tug of lower prices and lower margins?

Amazon would seem determined to bring everybody down to where it is with the kindle fire.

Apple made the low-cost concession with the ipad mini.

It is not get you down to where you see the lowest android tablets and kindle fire being sold at.

But generally speaking they don't have to do that.

Amazon has already said they would sell their hardware basically at cost and they will make their money off of the software and services that they provide through the tablets.

The new ipad -- this is why i am on the show today -- hardware is a big deal for people when it comes to apple.

They don't really need to have the lower end tablets because what they have been putting out there has seen sufficient uptake since they first introduced it.

They don't need anything less expensive?

I don't think we are going to see anything less extensive today, i really don't. they have shown that they've gotten $400 of the ipad mini and have sold a lot of those things and people are still buying apps and that is the main thing that apple has.

You get the nice, beautiful hardware and you get access to their app store.

Where are we with the ipad relative to the iphone?

It seems we have reached -- i would not call it a saturation point, but a lot of people who are going to buy an iphone have one.

It is going to pivot on how productive you can be with an ipad because it is an interesting gadget and it is compelling but it is hard to do your work.

Ok, but that is no different from the iphone.

I talk about this constantly.

Yesterday i interviewed p. didd y, 2 devices.

Martha stewart, 2 devices.

People cannot do actual work on the iphone.

Why can't apple get their head around the fact that people cannot get their work done on the ipad or iphone?

The tablet market is still supposed to grow by leaps and bounds.

Talking about almost 300 million units by next year for tablets.

It is probably next year going to overtake easy -- overtake pc's, shrinking at 70% per year.

Whether it is functional or not, people decide this is a product that they want to have and it is growing while pc's are shrugging.

But we are facing slower ipad sales quarter by quarter.

You can see declining -- is it because there is too many competitors?

I think that has something to do with it.

A lot of people who bought ipads already have an abd upgrade cycles aren't as quick as they might be, say, with phones.

When you get your contract you kind of know you will be getting new phones.

With tablets, those are different.

Those are secondary devices do you still see people walking around with the original ipad.

That has quite a bit to do with it.

Let's talk about the tv.

First of all, we have to ask you, michael, whether based on what you know about the source of this information, this japanese research firm, it sounds like it is credible.

It very well maybe, but these kind of apple tv rumors have been going on for years.

It seems like almost before every new event we get some little bit of information that seems to indicate that apple wants to enter the big screen space that we have yet to see anything to kind of show that -- there has been no proof.

A lot of times -- before the ipad this year, we saw these things showing up that indicate that it is coming, that they are being made.

We have yet to see much of that, or any evidence that apple is going to enter the tv market.

It is a low-margin game.

Until they can bring something revolutionary to the platform, i don't think apple is going to enter it.

They already have apple tv, they are on other tv's. i can't see them jumping into the tv space.

Low-margin on one hand, so much hype on the other.

Do you care?

Do you want to see apple get into the tv market?

I would like to see them get into a host of different products.

Like what?

Entertainment systems, high- end tv's would make sense, whether it is this year or next year or the year after.

What they are trying to do is create and easy as them around the brand and create a brand based on the software that you high do about getting -- if it is a td, it is a high-margin tv, not a low-margin tv.

The same way that the laptops and the pc's -- they have high- end pc's, not low-end.

That is the mythology, to get people focused on paying up for a bigger product, -- that is the mentality, to get people focus on paying up for a bigger product, better product.

It seems to make sense.

Whether it is a tv now our down the road am in my opinion it is going to be part of an ecosystem.

If they get a keypad i will

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

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