iPad, to Lead Tablet Distribution of PCs in 2011

A prediction from analysts at Citigroup, FBR Capital Markets and Gartner reveals that next year’s sales of tablets will be led by Apple. Citigroup estimates that 35 million tablets will ship in 2011, with Apple’s iPad representing three-quarters of the total sale. Craig Berger of FBR Capital Markets pointed out that Apple will sell 40 million iPad next year, and that other manufacturers will manage to distribute 30 million units.

Apple’s sales of iPad is cutting into PC makers’ profit margins, including its own. Of course, the company enjoys the stoutest revenue line, but it warns the public about the more aggressive prices on upcoming products. By hoisting the economic scale in building millions of iPods and iPhones, Apple can sell its tablet for less. It can be very affordable — an amount that competitors can’t afford to sell their device.

Meanwhile, rival PC makers are left to utilize Microsft’s Windows 7, which is not fitting for a Tablet PC market before. Galaxy Tab is already offering Google’s Android OS, while RIM and HP have decided to build their own iOS competitors. But will these competitors ever weather the iPad storm brought by Apple?

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