Smaller Tablets Are the Bigger Investment for 2013: Amazon.com, Inc. (AMZN), Google Inc (GOOG) and More

Source: DisplaySearch.

It’s a small world
If the shift to smaller tablets comes true — and it the current trends suggest that it will ­– then investors need to look at which companies are in the position to ride this small tablet wave all the way to the shore. In 2011, about 17 million small tablets were shipped, and that number spiked to 34 million in 2012. Apple was originally expected to sell 60 million iPads in 2013 and 40 million iPad Minis, but some have estimated the numbers to be more like 55 million Minis and 33 million iPads.

A report by Forrester Research, Inc. (NASDAQ:FORR) last year said that one-third of Americans will have a tablet by 2016. It now seems that many of those tablets are likely to be smaller ones.

With Apple well into the small tablet market now, its prospects for future market share look good. By 2016, IDC estimates that Apple will have 49.7% tablet market share, Android will take 39.7%, and Microsoft’s Windows OS will grab 10.3%.

Although Apple is always more concerned with profit margins than market share, investors need to keep an eye on Apple’s iPad Mini to see if the tablet can help the company reclaim some of its old tablet territory. With so many Android devices on the market, and at every price point, Apple can’t afford to be pushed around in the high-end small tablet space.

Though Apple has brought huge rewards for longtime investors, many are wondering whether Apple remains a buy. The Motley Fool’s senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple Inc. (NASDAQ:AAPL), simply click here now.

The article Smaller Tablets Are the Bigger Investment for 2013 originally appeared on Fool.com and is written by Chris Neiger.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, and Google. The Motley Fool owns shares of Amazon.com, Apple, Google, and Microsoft.

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