That’s the way the free market works. A producer creates something revolutionary, so he starts out owning all of the market, but as competitors start to catch up, the start owning their share of the market.
Apple will not stay at 80 percent of the tablet market. They obviously won’t disappear, but they will probably eventually settle to whatever level their computers sell in the general computer market.
They are great toys, and decent imaging tools, but for data manipulation a touchscreen isn't that good (yet).
“A producer creates something revolutionary, so he starts out owning all of the market, but as competitors start to catch up, the start owning their share of the market.
Apple will not stay at 80 percent of the tablet market. They obviously wont disappear, but they will probably eventually settle to whatever level their computers sell in the general computer market.”
Apple has some advantages you’re not considering:
First is its overall software ecosystem, including developer tools. Apple’s software leads the industry and its competitors show no signs of catching up. Apple’s hardware R&D team is just about as good too.
Second is the halo effect, where people purchase other Apple products because they work so well with their existing Apple products (or because they want more Apple products due to their positive experience with their current Apple products).
Third is that having achieved the status of “largest company in history”, Apple now has amazing buying power, meaning that its products can sell at the same price point as competitors, while still enjoying larger margins. It will also continue to attract top talent as employees.
So, personally I’m not worried about Apple’s longer-term prospects. :-)