Apple Inc. (NASDAQ:AAPL) iPad is expected to witness increased demand during the holiday season with year on year stability, and will dominate the segment by a “wide margin,” according to a report from Baird Equity Research. Analysts William V. Power, Colin Sebastian, Rohit Kulkarni, Steven J. Beckert and Andrew T. Flis at Baird note that there is a strong demand for cellular enabled devices, which would work in favor of the wireless carriers.
Apple iPads dominate
Apple Inc. (NASDAQ:AAPL) has outpaced rivals in the tablet industry as 35% of customers who are planning to buy tablets next year will probably go for an iPad, which is almost flat with the previous year, and is positive for Apple amidst flooding competition, based on the tablet survey conducted by Baird.
Around 37% of customers have planned to purchase an iPad Air, 36% are planning for iPad 2 and 27% are planning to buy iPad minis.
Approximately 60% of iPhone users are planning to buy an iPad compared to only 16% of Android users. This can go negative for Apple as the customer base of Android is increasing all over the world.
More demand for cellular tablets
Analysts noted that around 66% of prospective tablet buyers are willing to buy cellular enabled tabs, which is an increase from 46% a year ago, and 36% as of 18 months ago.
Within the survey, analysts found that there was no upside in the respondents who wanted to buy tablets for work. Around 70% of the respondents surveyed said that they would purchase tablets for personal/recreational purposes.
OS and brand attracts buyers
The percentage of customers who wish to buy Samsung tablets has increased from 11% to 14% year on year. Demand for Microsoft Corporation (NASDAQ:MSFT)’s tablets rose from 9% to 11%, and Google saw a decline from 22% to 19%. Demand for Amazon tablets was flat at 16%.
The most sought after features in the Apple Inc. (NASDAQ:AAPL) iPad are the operating system and the brand. For the Amazon Kindle, price is a major factor for buying consideration. The Google Nexus is mostly in demand because of its price and operating system. Android and Nexus will escalate Android tablet demand and usage of key Google Apps
The survey from Baird included 1,100 respondents from all over the United States, and is normalized for gender and tablet ownership.