Since its release, the iPad has been the standard by which competing gadgets are measured. Of course, that was as much due to a lack of competition as it was because of fanatic early adopters. Apple Inc. (NASDAQ: AAPL) did, after all, single-handedly create the product category for tablet computers.
But now other manufacturers such as Samsung, Research in Motion (NASDAQ: RIMM), Motorola (NYSE: MMI) and even Dell (NASDAQ: DELL) are coming out with flashy tablets of their own, and Apple is hoping the release of its iPad 2 last week will maintain its current dominance in the category.
A new survey shows that it will, and remains a runaway favorite. But that’s not all that shocking — more importantly, the survey indicates Apple may strike a near-fatal blow to one of its top competitors – the
Amazon (NASDAQ: AMZN) Kindle.
Specifically, a recent survey from ChangeWave surveyed nearly 3,100 consumers and plotted strong tablet demand – with 27% of respondents planning to buy one of the gadgets soon. That’s 2 percentage points stronger than a similar survey in November, indicating a growing market. What’s more, ChangeWave showed that Apple and its iPad remains the runaway favorite – with more than 8 out of 10 tablet shoppers preparing to buy an iPad.
This is down slightly from 90% in a previous ChangeWave survey, but hardly a sign that Apple should panic. Considering the host of competitors jumping into the space, the fact that they all have collectively shaved a mere 5% off of future buying trends for the iPad is actually pretty impressive.
But perhaps the most interesting facet of the ChangeWave report is not the dominance of Apple – which is hardly news. The survey also asked future buyers if there were other devices they had planned on purchasing but are now forgoing thanks to their prospective iPads.
And 17% said they planned to buy Kindles from Amazon.com (NASDAQ: AMZN).
The fact that tablets are replacing the laptop and netbook is not exactly news. But Amazon appeared to be resilient in the face of the iPad’s dominance, with brisk Kindle sales in 2010 that were estimated at around 8 million. That’s nearly triple sales in 2009, a year before the iPad was even an e-reader option.
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But if the recent ChangeWave survey shows a disturbing cannibalization of Kindle shoppers – and a growing one. The number of respondents who said they were passing over a Kindle for an iPad in a similar survey last November totaled just 11%.
The bottom line of the new survey is not really a shock – that Apple is the dominant player in the tablet space, and that up-and-comers are barely a blip on the radar. However the details show that Apple is striking fear into the hearts of gadget makers beyond just the tablet arena.
Namely, Amazon and the kindle.
Jeff Reeves is editor of InvestorPlace.com. As of this writing, he did not own a position in any of the stocks named here. Follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook.
