DigiTimes is reporting on the findings of Market watchers, which claims that companies competing with Apple’s iPad face a “high risk” of holding excess tablet inventory in the latter half of 2011. This is due to an influx of fist, and second-tier smartphone/notebook vendors are entering the market, with potentially 10 different tablets on sale by year’s end. Couple this with a demand scale of only 20 million units, and someone is going to get stuck holding a bunch of unsold devices.
The report goes on to note that with Motorola and Samsung seeing lower-than-expected sales, newcomers such as Acer and Asustek could fall into the same hole.
In short, this report politely sums up the situation. That is, Apple is dominating, and others are struggling to sell. More and more companies are entering the market, and quickly outpacing demand. These companies will likely be eating into each other’s marketshare without severely damaging Apple’s.
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