Application Of The Tablet Industry Essay

According to Motley Fool, Apple’s share of tablet market only has 20.3% in the third quarter of 2015. It has dropped substantially. It was nearly 90% in 2010.

A majority of the attractiveness stems from the abnormally low buyer and supplier power. However, this gain is offset by the current low barriers of entry and high competitive rivalry. In order to remain competitive, incumbents must (1) invest heavily in research and development, (2) secure technology via patents, (3) market heavily to monetize products, all of which will diminish bottom line results.

In 2010, in reaction to rumors of a 7-inch tablets being introduced into the market, Steve Jobs simply said, “7-inch tablets are tweeners: too big to compete with a Smartphone and too small to compete with the iPad” (Chen, 2010). While Apple has stayed true to this, many tablet manufacturers have introduced tablets smaller than the iPad, and they are having success. Samsung has introduced the Galaxy Tab, which is generally just 7 inches, although it also comes in a 10.1 inch version. flouting into a market with so many sellers is easy, but success is not guaranteed. One must look at the firm considered to offer the most competition,

Apple also has an advantage on their low production cost because of its economies of scale and these are the main reasons that contribute to Apple Company’ dominance in the market with respect to new market entrants.

For example, Microsoft invented tablet computers in the early 2000s, without assessing if the market was ready for them so the product was a mass failure. However, when Apple made a replica of the same product in 2010 when the world had become more digital, its version was a great success. Consequently, market analysis is the foundation of the success or feasibility of the Red Zuma Project.

This shows that a product development strategy for entry into a new market is successful; it may lead the company into introducing more innovative products into the same market or parallel markets, such as in the introduction of iPhone into the smart phone market, and most recently the iPad into the slate PC market.

Apple’s iPhone and iPad has gained a large share of the smart phone and computer tablet market.   Mitchell (2011) noted that competitors have released their own versions, and almost overnight, a new technological commodity has become a competing force in the business world. Apple has introduced many innovative features and has redefined the mobile-device and computer tablet landscape forcing the competition to evolve and play catch-up in many cases (DesRosiers, 2010).

Firstly, we should divide Apple Inc. into the Mac line and the iPhone/ iPad line. In the Mac line, the barrier to entry is very high, causing very few new firms to be able to enter. Developing a computer OS is a very difficult business, because software also need to be compatible with your system, which is very difficult because software companies may have to completely rewrite a program to suit your system. So the entry barrier is extremely high. On the other hand, the mobile device market may have lower entry barrier, as we can see firms like Samsung and Nokia also has their relevant share of the market, but exit

According to the article "iPad May Join Aspirin, Heroin, as Generic Name, Branding Experts Say" (2012), Apple products tablets may become a generic term for all tablets rather than referring only to the ones made by Apple. There are positives and negatives to this tendency. Whereas it ensures that as many people as possible understand and associate the product with the brand, it also opens up issues with branding which have to do with trademarks. It becomes easier to overcome the laws regarding copyright and trademark when the term no longer is applied to a specific company's product but rather to all examples of that product currently on the market.

The following year Jobs became Apple 's CEO, driving the company to its greatest successes, from the iPod to the iPhone and the iPad. Apple introduces the iPhone, the first phone with a touchscreen and no keyboard.  It revolutionized the cell phone industry--revolutionary because of its ease of use. When the iPad came out, Apple captured an 80%share of the tablet market. iPads they’re used at 92% of Fortune 500 companies.

The industry has enjoyed global market over the years, thereby providing adequate markets for the products. This owes to the age of globalization that has facilitated the spread of civilizations to different places throughout the world. Diverse nature of the industry provides more opportunities as companies can enlarge their cope to cover areas such as production of toys, books, movies etc. It therefore gives option for companies who can exploit this aspect by enlarging their scope. This enhances profitability of the industry. The technological era gives the industry an edge because firms can enhance their efficiency and effectiveness through the use technology in production and marketing of the products. The cost of production and advertisement is kept low and this makes the industry substantially prescribe low capital for new entrants (Kang, Heo, Choi & Lee, 2014).

The differentiation in invocation and quality products will also render new entrants difficult to enter the market. Although the access to distribution channel is low and the expected retaliation in terms of price wars will low due to the being established companies, the threat of new entrants is assess to be moderately.

DigiTimes (2010) demonstrates that the first generation of iPad price was $499, at that time some tablet PC manufacturers predicted iPad’s price is about $1000 and these tablet PC manufacturers originally planned their tablet prices 20%-30% lower than the iPad. The present the iPad price is only $499, which compels the tablet PC manufacturer to re-evaluate the price strategy. If tablet PC manufacturers want their product appealing to consumers, they could only adjust the price lower than the iPad. But the final result shows that it is failed, and now iPad is the fourth generation, but it still people’s first choice for PC tablets. If the iPhone and iPad’s price were more expensive, maybe they would not be so popular; I believe Apple Company is also aware of this

Apple’s introduction of the iPad in 2010 was met with excitement. Sales for iPad tablets rocketed to over 250 million units sold by 2015. Apple is known as an innovator of new ideas and products; from being the earliest producer of widely used personal computers, mp3 players, cell phones, and smartwatches. Apple, with the iPad, was the first company to successfully mass produce and sell consumer friendly tablets. Every generation of the Apple tablet has brought new technology and innovation. The original iPad when introduced could take photos, play movies and music and wirelessly connect to the internet. Using the high visibility of its brand name the company plans to sell its 9th generation tablet, Ipad Pro, next month to a hungry consumer audience.

The popularity of usage of tablets still increasing for instance Apple's popular iPad, gain the market reputation. The tablet computers are well made of portable with flexible screen size and smaller in size. Tablet computers are ideal