when the company stops making them

Don’t confuse a few corporate miscues with companies turning the page on tablets.

Industry revenues for computer tablets are expected to surpass $37 billion this year, up from $31 billion in 2012, based on figures from the Consumer Electronics Association. Given that, shoppers can expect the devices to remain a staple at stores.

So, the question becomes which tablets will remain in display cases at a time when Hewlett-Packard Co., Barnes & Noble Inc., Microsoft Corp. and others have had to abandon or alter their tablet strategy.

HP’s TouchPad is probably the most notable misfire. When it debuted in February 2011 the company had high hopes, but they were dashed just six months later as poor consumer reception resulted in a fire sale.

The discontinued device’s starting price fell from $399 to $99.

Something similar is taking place at Barnes & Noble with its line of tablets. When the Nook arrived in 2009 it was a modest e-reader, but last September the company unveiled the Nook HD+, a 9-inch full-fledged tablet for $269.

After lackluster holiday sales, however, the gadget received a hefty price cut this summer and now costs $149. Barnes & Noble will continue to sell Nooks, but reportedly is seeking a partner to produce them.

Last summer,wholesale fashion shoes Microsoft attempted to make a splash with its Surface RT tablet, which starts at $499. In July, the company shaved $150 off the price in an attempt to compete with other tablets.

Ever since Apple Inc. began selling its iconic tablet three years ago, other companies have been playing follow the leader, said Purdue University business expert Logan Jordan.

“The Kindle Fire has the power of Amazon behind it and the Android devices have Google apps, but some of the other tablets out there are having a hard time keeping up,” said Jordan, associate dean at the Krannert Graduate School of Management at the college. “It depends on what type of ecosystem you have, and for Apple it already had its own app store in place.”

The International Data Corp. last week reported tablet shipments slipped about 10 percent to 45.1 million units in the April-June period, compared with the first three months of the year.

The IDC says once Apple launches an updated iPad it will provide a shot in the arm for the industry, which still had a nearly 60 percent increase in shipments in the second quarter, compared to a year ago during the same period.

“A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” Tom Mainelli, IDC research director, said in a statement. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter. However, by the fourth quarter we expect new products from Apple, Amazon, and others to drive impressive growth in the market.”

Huntington resident Tara Davis got a Samsung 7-inch tablet for a Christmas gift and though the 29-year-old loves the Android device, she makes no secret about what’s really on her wish list.

“I use it mostly for the Internet, playing games and reading articles,” she said. “I like it, but I want an iPad. I’m waiting for the next one to come out.”

Retail staffers aren’t surprised by iPad’s continued popularity. Michael Widenhofer is an electronics retail specialist at Target at Glenbrook Square. He said despite the Nook’s price cut, Apple’s iPad still outsells it by a 4-to-1 ratio at his store.

“Initially, it was a very large response for the Nook when the price dropped, but sales have tapered off,” Widenhofer said. “Some might say the iPad puts the Nook and Kindle both at a disadvantage because they came late to the game and are still trying to catch up.”

Barnes & Noble manager Brad Cook doesn’t agree. He said since the price cut – and the company’s partnership with Google – sales of the Nook have been strong.

In May, Barnes & Noble announced an agreement to bring Google’s more than 700,000 applications to the Nook, which previously only had 10,000 options available at the B&N app store. The Google pairing also allows Nook users to buy and download music.

“I’d say sales are up 35 percent to 40 percent since all this happened,” said Cook, who oversees the Glenbrook Square store.

“Even when the company stops making them, we will continue to sell them.”

Since Microsoft invested $300 million in the Nook last year, industry analysts have speculated that a deal could be in the works to acquire the tablet business.

“Whatever happens, we expect it to continue to sell well,” Cook said. “We should have enough stock through the Christmas season.”
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