Analyst Reveals Why Android Is Beating The IPhone, But Not The IPad

Toni Sacconaghi of Bernstein research has suggested two reasons why Android tablets are not beating the iPad, despite the fact that Android is dominant in the smartphone market.

The two reasons? Price and distribution.

Sacconaghi highlights the fact that the iPhone is distributed by just 240 carriers, significantly less than Samsung and Nokia, who enjoy global distribution. Even Blackberry is available on twice as many carriers.

This is one of the main reasons, Sacconaghi believes that the iPhone isn’t beating Android powered mobiles. Thanks to sheer will of numbers, Android’s massive distribution naturally encompasses more sales aswell.

In contrast, the iPad has much stronger global distribution compared to its Android competitors. Apple’s share of the smartphone market has risen from 9% to 19%, in the same time Android’s share has rocketed from 0 to 70%. Again in contrast Apple’s share of the tablet market stands at 57%, although Bernstein predicts that will drop to around 40% in 2013.

In regards to price, Apple’s decision to release the cheaper iPad mini is also a factor in Apple’s tablet dominance. It may also stand to reason that Apple’s decision not to release a cheaper iPhone, so far, is pushing customers with a smaller budget towards Android.

On balance, we believe that these factors suggest that Apple may be able to sustain higher unit share in the tablet market that in smartphones, particularly given Apple’s apparent willingness to offer lower priced devices such as the Mini.

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