The tablet market is “nowhere near maturing” and there's pent-up demand for new iPads, Cherukuri said. Even if Apple's market share declines, the company is the “clear winner” because it makes more profit on each device.
With more consumers buying tablets, PC shipments fell 8.6 percent in the third quarter to 80.3 million shipments, Gartner said Oct. 10. That's the lowest level for the period since 2008.
Apple's success in navigating the trend it triggered with the debut of the iPad will depend on whether it can fend off the growing number of tablets based on Google Inc.'s Android mobile operating system, similar to how Android smartphones chipped away at iPhone's lead, according to Neil Shah, research director at Counterpoint Research.
“Apple is getting into exactly the similar situation as with iPhone for its iPad,” Shah said. “It's Apple against thousands of Android vendors.”
Eoin Treacy's view A subscriber who attended the latest Contrary Opinion Forum in Vermont last month shared his view over breakfast that while Apple is most famous for its hardware, it is the company's software that helps to cement users. The iTunes ecosystem represents a considerable buttress in helping hold customers. However, since the majority of apps are now also available on Android, Apple has more competition in securing new customers.
Apple's share price bottomed in April near $400, consolidated mostly above $450 from September and hit a new recovery high today. A sustained move below the 200-day MA, currently near $475, would now be required to question medium-term potential for additional upside.