ANDROID TABLET MAKERS DISAPPOINTED WITH SALES, SHIFTING BACK TO CELL PHONES

Cell phone makers that have entered the emerging consumer tablet market over the past year are now backing off according to a report from DigiTimes on Friday. Thus far only Samsung has been able to make a real dent in Apple’s stronghold on this new market, capturing a 10% share with its Galaxy Tab Android-powered tablet.

Samsung’s triumph was due mainly to the Galaxy Tab’s widespread distribution, and other entrants into the market have not been able to capture the same success. While 250,000 XOOM tablets shipped in two months and 500,000 PlayBooks shipped last quarter are respectable figures, it’s hard to call those products a success when Apple has sold 25 million iPads in just 14 months. As a result, companies that planned to attack the tablet market aggressively may now be pulling back some of that investment to focus on another new market: supersized smartphones. Android phones with displays sized between four and five inches have become increasingly popular since the launch of Sprint’s HTC EVO 4G, and it looks like handset makers may be better served to focus on that space while the market figures out whether or not if even wants consumer tablets.