With no new Nexus 10, iPad has few rivals in high-end tablets
The competition from the Android side appears content to cluster at the low end. So yes, there is a reason Apple can keep its tablet prices high.
Apple may be seeing an army of rivals jumping into the tablet business, but the iPad is still largely standing by itself when it comes to the category of large premium products.
Last week's debut of the
The Nexus 10 was supposed to take on the larger iPad with updated software, super-crisp display, and faster processor. CNET editor Eric Franklin called the Samsung-made device the best iPad alternative in the market, lauding its sharp screen and high-end specs. Despite the critical praise it received, the Nexus 10 didn't take off as quickly as its smaller brother, the Nexus 7 (which did get an update earlier this year).
"I think the lack of a Nexus 10 refresh (at least to date) reflects the fact that the market for a premium Android tablet is still pretty small," said Tom Mainelli, an analyst at IDC.
For Apple, the high-end tablet business is more critical than ever as the company faces an assault on a tablet market as a whole that it once dominated. In the third quarter, thefrom 40 percent a year ago, according to IDC.
The market share losses, however, have largely been from the lower end of the business, an area Apple hasn't been too keen on moving into. By preserving its premium brand and reputation, Apple is able to generate higher profits and revenue from its iPad line.
Just look at the pricing of the iPad line. The 10-inch
Those pricing levels suggest that Apple doesn't really care about consumers looking for a deal. Yes, there are some lower-priced options, but a year-old iPad Mini and a much older iPad 2 can't compare to today's current slate of affordable tablets.
Avi Greengart of Current Analysis, who covers consumer devices, said he was surprised that Google opted not to update its Nexus 10. As it stands, the current model will have a tough time competing against the iPad Air, he said, adding that it would need "to go on a diet" and get a speed boost to remain competitive.
While Apple may have made only minor specification improvements and trimmed down the body in the iPad Air, which went on sale Friday, the changes are enough to keep it on top of the tablet market and justify its premium reputation.
Google, meanwhile, sees its tablets as tools to get developers on board with Android tablet apps.
"As such, they really only needed one tablet and they've really focused on Nexus 7 as the solution for that category," said Jan Dawson, an analyst at Ovum.
Even other full-sized tablets, such as the larger
The biggest source of competition on the high end comes from Samsung, which continues to push a large number of tablets in different sizes and configurations. The company captured more than 20 percent of the tablet market in the third quarter, according to IDC.
But as much as Samsung has improved its own tablets, including the Galaxy Note and Tab lines, few of its products enjoy the buzz of Apple's iPad, or even Samsung's
The Nexus 10, with the backing of Google, could have been that marquee larger Android tablet.
But for now, it appears that Apple has a lock on that segment.