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iPad rivals have greater chances of success in Europe than US, but price cuts needed says Forrester

Apple's smaller retail presence a disadvantage
iPad rivals have greater chances of success in Europe than US, but price cuts needed says Forrester
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Anyone who surveys reports on smartphone market on both sides of the Atlantic will know the inherent differences between consumer habits.

That's a fact Apple's rivals can use to their advantage as they look to take on iPad, reports IT research firm Forrester, but only if they cut their prices and improve their retail channels.

Changing the strategy

Forrester alleges Apple's smaller retail presence in Europe 52 stores compared to the 238 in the US means consumers are more likely to consider non-iPad purchase when looking to pick up a tablet.

However, to really make progress, prices will need to come down and OEMs will need to work on their positioning on the high street.

"There is this opportunity for iPad challengers, but the competition is very fragmented," said analyst and Forrester report author Sarah Rotman Epps.

"Competing with Apple will require a different approach from what we've seen so far. A competitor to Apple would have to put together the right content, the right price and the right channel strategy. There isn't anyone that has all three."

Hitting Apple where it hurts

Forrester's numbers suggest the European tablet market is actually relatively small, with only 2 to 7 percent of consumers currently owning a device.

However, the firm's report suggest non-iPad tablets will make up 30 percent of the market across the continent in 2011  10 percent higher than in the US.

The problem is, the report reads, retailers are already less inclined to back Apple's rivals.

"Manufacturers, retailers and operators we spoke with all commented on the failure of the first 7-inch tablets that attempted to compete with the iPad," the report concluded.

"The newer generation of iPad challengers, such as the 10-inch Samsung Galaxy Tab (pictured) and the Acer Iconia Tab, are getting better reception, but they're still at a disadvantage to Apple in terms of channel strategy."

Interestingly, the UK might hold the key for Apple's competitors. Despite playing host to well over half the company's European stores, iPad ownership is actually relatively low across the country, coming in at 3 percent.

[source: Reuters]