The Tablet Market May Already Be Saturated

The iPad 2 could make it hard for competitors to find a seat at the table.

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As you already know, the iPad 2 is hitting stores tomorrow. This is great news if you've been looking to become a tablet owner, but not so great news if you're looking to become a tablet maker. In fact, the general consensus says the slew of companies getting ready to release their own slabs of silicon are pretty much pissing themselves.

Following Samsung's humbled statements regarding the iPad 2's thinness and price, an analyst at JP Morgan argues that newcomers to the tablet race have even more to be worried about: The field has matured so quickly that  by the time many upcoming tablets get to market, people might not even want them any more.

There are only a handful of tablets available for purchase at the moment (Xoom, Galaxy Tab, iPad and some others), and of them, the iPad 2 stands out as the only second generation option: It's thinner, lighter and-- crucially-- more affordable than its competitors with a processor that's just as fast. Because the iPad 2 is so far ahead of the game, the companies working on competing tablets right now are under pressure to further enhance devices that have already been in production for several months to a year. And they have to do it while somehow cutting costs.

That takes time, and the longer it takes to deliver a strong competitor, the longer Apple has to put iPad 2s into the hands of a hungry public. By ship date, many people who want to buy tablets may have already been sold.

And then there are those Fall 2011 iPad 3 rumors.

It bears repeating: the iPad can't be stopped.

[CNET]

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