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Apple to Continue Mobile Market Domination into 2011: Report

Dec 2, 2010

Based on continued strong sell-through trends for Apple’s iPad and iPhone, Canaccord Genuity technology analyst Michael Walkley said he believed Apple will maintain both market and value share leadership in the fast-growing mobile device market. Walkley’s report maintained the firm’s “buy” rating for the company, and noted strong sell-through indication trends for iPads with growing distribution and improved supply. As a result, Walkley increased his iPad unit estimates from 5 million to 6.3 million for the fourth quarter of 2010.

The report concluded Apple has set the standard for the tablet market, and predicted its aggressive pricing would make it tough for competitors to compete longer-term. In fact, given Apple’s strong ecosystem of applications and leading tablet form factor, the report projected the competing tablet products would need to sell at a substantial discount of roughly $200 to effectively compete with Apple. Walkley noted at this level of discount, he believed competitors could struggle to reach sustainable profits, and predicted Apple would maintain dominant tablet market share.

“Our monthly channel checks indicated continued strong sales of the iPhone 4, as it remained by far the top-selling smartphone at AT&T despite the new Windows 7 smartphones and a reduction in BlackBerry Torch prices from $199 to $99,” his report noted. “We believe a CDMA iPhone will launch during Q1/C2011, with a likely launch during February, and we anticipate strong iPhone sales at Verizon during H1/C2011 could slow Android momentum.”


For more, read the eWeek article: Apple Mobile Market Domination Extending to 2011: Report.

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