iPad 2 success will burst the bubble for competing tablet manufacturers
Analyst Mark Moskowitz of J.P. Morgan Research predicts the success of the iPad 2 will cause oversupply problems for competing tablet manufacturers. Moskowitz claims manufacturers looking to compete with the iPad 2 have extremely ambitious build plans that will hurt them in the long run.
According to his analysis, tablet makers could build up to 65.1 million tablets in 2011, a number which greatly exceeds his estimate of 47.9 million in unit sales. This enthusiasm to duplicate the iPad's success could lead to an oversupply in tablets and components used to build these tablets. In a worst case scenario, tablet makers may have an oversupply of 51%.
Moskowitz claims the iPad 2 will continue to lead the tablet market in 2011, a sentiment echoed in other reports. The J.P. Morgan analyst views the Motorola Xoom and the upcoming HP Touchpad as potential competitors to the iPad, but claims consumers may be "underwhelmed" by the remaining tablet products slated to hit the shelves in 2011.
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