Android-powered tablets are gaining traction according to Frank N. Magid Associates. In fact they are selling fast enough to decrease the iPad’s overall market share, despite recent record sales for the Apple tablet. In a survey, Frank N. Magid Associates found that the iPad share went down to 50% from a record high of 72% during the previous survey.

The study’s conclusion was that low-cost devices like the Kindle Fire ($199) have been particularly effective to expand Android’s reach and with the imminent arrival of the Microsoft Surface and the strong start of the Nexus 7, things could get even worse for Apple’s tablet share going forward. That said, Frank N. Magid Associates still expects the iPad to remain the leader in the tablet race, but with a much reduced lead.

That said, it is fair to take into consideration that the survey was only sampling 4734 smartphone owners. In a world where 1 Billion smartphones are sold every year, that’s very little, and we don’t know how “representative” the panel is, if at all. Yet, it is obvious that low-priced device will probably end up selling more units. Now, the question is whether Apple will address this by launching its rumored iPad mini (7″) at $299 at the risk of lowering its profit margins.

Market share figures are relevant to developers who are trying to address the largest market. Apps availability and quality have repercussions on the overall platform because end-users want to use the best apps. That is why the market-share game is closely tracked.

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