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Tablet Wars: iPad Vs. the World
CNBC.com | March 19, 2011 | 11:41 AM EDT

There's no doubt that Apple's latest iteration of the iPad is a hit with consumers. Day one sales are estimated at 500,000 or above and people are still lining up outside their nearest Apple store to get their hands on one.

But the iPad 2is entering a much different world than its predecessor. And while Apple still holds a commanding market share position, it may be in for a much tougher fight this time around.

Competitors have had an opportunity to examine Apple's weaknesses with the original iPad—and the new features of the current model were hardly a surprise to anyone. Google, meanwhile, released Android 3.0 in February, the first of its mobile operating systems that was built specifically for tablet computers.

"We're really just seeing the cutting edge of the emergence of truly competitive products to the iPad," says Rhoda Alexander, an analyst with IHS iSuppli "And arguably, it's not a true head-to-head comparison at this point because of price.

The Motorola Xoom won widespread acclaim at this year's Consumer Electronics Show and was touted as a potentially formidable competitor to the iPad, but when the prices were announced, that buzz took a hit. $799 for an unsubsidized version (the truest comparison to an iPad's pricing) was dubbed prohibitively expensive – and consumers have so far basically ignored the device.

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