Looks like the iPad is facing stiff competition from the many other alternatives available in the tablet market. Apple finally conceded that iPad sales in the fourth quarter have slowed down, and the rising costs could also offset the profits from sales. Apple recently launched the iPad Mini and it’s too soon to tell if it can turn the situation around in the company’s favor. Even its competitor, Amazon, announced a loss of $28 million during the third quarter, possibly due to its low pricing of the Kindle Fire HD tablet.
In these troubled times for tablets, Microsoft finally made its Surface tablet available to consumers, and the battle among tablets just got heated up all over again. While analysts predict that its high price could be a deterrent, Microsoft is optimistic that the brand new interface could find many takers, and possibly pull customers off competing products like the iPad.
Fortunately for Apple, it did register a 24% increase in profits over the previous quarter, thanks to stronger iPhone sales. However, it didn’t sell as many iPads as it had expected. Amazon, on the other hand, incurred losses despite sales having registered a 27% rise. Amazon has admitted that it lost some revenue due to its investment in coupon site LivingSocial, in addition to the low cost of Kindle Fire HD tablets.