Apple unveils its new iPad but will it be enough to take back the lead in the tablet market? And what about the stock?
Three companies are unveiling tablet computers today – Microsoft, Nokia, and, of course, Apple. These releases come just in time for the holidays. But, is it just in time for Apple to regain dominance in the tablet market?
Only three and a half years ago, Apple unleashed its first iPad to the world. While the company didn't invent tablet computers, it revolutionized the segment. Before the iPad, tablets were generally run using the Windows operating system and were a negligible part of the marketplace. This year, over 184 million tablets are expected to be shipped compared to 303 million PCs.
But while Apple may have just about created the market for tablets, it has since lost its dominance. In 2012, Apple had 60.3% of the market share. Just one year later, Apple remains the single biggest manufacturer of tablets but their share has dropped to 32.4%.
Eating into Apple's share are Android-based tablets made by the likes of Samsung, which now has 18% of the tablet market. While iPads account for 84% of Web traffic from tablets in the North America, Apple is having a tougher time worldwide. In India, for example, Samsung sells 15.7% of all tablets while Apple is just almost 10%. Overall, tablets based on Google's free Android now dominate the market. (For who want to keep track, Windows-based tablets are less than 10% of the tablets sold.)
Meanwhile, another deep-pocketed competitor is making a bigger push. Amazon's newly launched Android-based Kindle Fire HDX line takes direct aim at the iPad in terms of price and display quality. The Kindle was the major player in the mini tablet market until Apple jumped into it with the iPad mini one year ago.
But what effect does market share loss have on shares of the company?
After spending much of the year in negative territory, Apple's stock is almost flat for the year. So, as Apple now releases the new iPad Air to the world, is it too little, too late for the company to regain control of the market? And, what does that mean for the stock?
On the fundamentals is John Stephenson, portfolio manager at First Asset Investment Management. Looking at the charts is Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson.
As the new iPad comes out, is it time to consider buying shares of Apple? Watch the video above to see what the fundamentals and technicals have to say about the company.
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