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Monday, 22 August 2011 - Analysis: With HP tablet dead, who can challenge Apple? |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Analysis: HP - Dial "M" for mayhem Free games boost gaming industry revenue Apple working with suppliers on new iPad: report Missouri teachers sue to block social media law Video: Texting as a competitive sport More technology news Follow Reuters Facebook Twitter RSS YouTube Read Puerto Rico braces for Tropical Storm Irene 21 Aug 2011 Gaddafi a fugitive as rebels take Tripoli | 11:56am EDT UPDATE 4-ENI leads Libya oil race; Russia, China may lose out 11:22am EDT Pope tells 1.5 million youngsters to spread gospel | 21 Aug 2011 Five headless bodies found in Acapulco 20 Aug 2011 Discussed 254 GM says bankruptcy excuses it from Impala repairs 244 UPDATE 3-White House denounces Perry as Republicans target Fed 151 Obama accuses Congress of holding back U.S. recovery Watched Una Healy got naked on holiday Sat, Aug 20 2011 Lockheed Martin presents airship of the future Thu, Aug 18 2011 Libyans celebrate rebels in Tripoli Sun, Aug 21 2011 Analysis: With HP tablet dead, who can challenge Apple? Tweet Share this Email Print Related News DealTalk: Sizing up who might buy Motorola's phone business Fri, Aug 19 2011 UPDATE 2-RIM near BlackBerry music service launch - sources Thu, Aug 18 2011 Google makes bold bid for Motorola Mobility Tue, Aug 16 2011 Google's Motorola bet to reshape Asian phone makers Tue, Aug 16 2011 Google to buy Motorola Mobility in biggest deal ever Mon, Aug 15 2011 Analysis & Opinion Nortel IP sale will help Google win OK for Motorola bid Tech wrap: Companies contiue patent buys Related Topics Technology » Media » iPad » Steve Jobs » HP's TouchPad tablet is shown on a screen during a media presentation at the Herbst Pavilion at the Fort Mason Center in San Francisco February 9, 2011. Credit: Reuters/Beck Deifenbach By Liana B. Baker NEW YORK | Mon Aug 22, 2011 10:21am EDT NEW YORK (Reuters)- The sudden demise of Hewlett-Packard Co's WebOS TouchPad after just seven weeks on shelves was a reminder of how tech giants have failed so far to take a bite out of Apple Inc's iPad. The TouchPad joins Dell Streak 5 in the tablet graveyard and weak sales for many offerings suggest others are bound to follow. "The non-iPad tablets just won't sell at retail. That's the clear message from events over the past few days," said Mark Gerber, an analyst at Boston research and investment firm Detwiler Fenton. Other tablets that have failed to click with consumers include Asustek Computer Eee Pad Transformer and the Xoom from Motorola Mobility, which Google Inc plans to buy. Research in Motion's PlayBook received scathing reviews and sales have been slack, but it will probably survive since it is key to RIM's strategy. "I do not expect RIM to be shutting down PlayBook sales any time soon or abandoning that platform, because RIM views it as its future," said Colin Gillis, an analyst at BGC Financial in New York. Apple's rivals have not fared any better in designing software for tablets. Apple's iOS tablet software accounted for 61.3 percent of the tablet market in the second quarter, more than double the 30.1 percent share held by Google's Android, its nearest competitor. Microsoft held a paltry 4.6 percent share and RIM 3.3 percent, according to Strategy Analytics. COMPETITION COMING But the landscape could soon change. Google's move this week to buy Motorola Mobility, a hardware manufacturer, has also potentially raised the stakes against Apple as it will give the Internet leader devices to showcase its software -- just as Apple does. All eyes are now on Google's "Ice Cream Sandwich" system, which will unite the Android software used in tablets and smartphones. That is expected to encourage developers to flock to the platform and create better apps. Microsoft could also pose a threat when it releases its tablet software, code-named Windows 8, but this probably won't be until the fall of 2012. "The ecosystem built around Microsoft is the largest computing ecosystem out there, so this makes it the company most likely to get significant traction in the tablet marketplace," said BGC's Gillis. Microsoft has said the software will run on a range of devices from traditional PCs to laptops and tablets, and incorporate mouse and keyboard commands. Amazon.com, the maker of the popular Kindle e-reader, is also expected to announce plans to release a tablet this fall, providing a challenge to Apple. The Amazon offering could be a "game-changer," Colin Sebastian, an analyst at Robert Baird & Co, said in a recent note. The tablet will likely feature Android's Honeycomb OS system, a 7-inch screen and be priced under $300, he said. Sebastian forecast sales of up to 3 million units in the first year and said they would eventually outsell other Android-enabled tablets from Motorola and Acer, and could potentially surpass Samsung's Galaxy Tab. Amazon's as-yet unnamed tablet poses a significant threat to Apple because of the Kindle's popularity and the movie and music services the company sells. Analysts also expect Amazon to subsidize the tablet's price, which could also boost sales. "Amazon is widely viewed as a wild card. It has the potential to be disruptive," said NPD analyst Ross Rubin. The crowded market has not discouraged Sony Corp either. The consumer electronics giant is going full steam ahead with plans to release its first two tablets in the fall. "We're going to see many competitors come and go," a Sony spokeswoman said. "We're going to bring the best of all of the assets at our disposal to bear: hardware, content and network services." (Additional reporting by Alistair Barr in San Francisco, Bill Rigby in Seattle and Poornima Gupta in San Francisco; editing by Peter Lauria, Ted Kerr and Andre Grenon) Technology Media iPad Steve Jobs Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Mobile Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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