Archos sells more tablets than Asus and Acer, has Europe’s number one sub-400€ tablet market share

Archos worldwide revenues increased 106% in 2011 compared to 2010. For the tablet sales in Europe, Archos is the second biggest tablet maker tied to Samsung. For the sub-400€ tablet market in Europe, Archos is the number one. Archos yearly tablet sales in Asia has exploded 464% going from 4,4M€ to 24,9M€ in revenue.

Think about it for a second. Archos is a 250-employee company based in Paris, and they are the European leader for the sub-400€ tablet market, they are virtually tied with the Samsung tablet sales in Europe and they are far in front of giants like Asus, Acer, Motorola, Toshiba, LG, Huawei, ZTE, HTC tablet sales in Europe.

Archos revenue from US sales “only” increased 57% year/year from 18,2M to 28,6M, my theory is because Archos has to prioritize where to spend their cash for production and distribution. Just as the Samsung Galaxy S2, Galaxy Note were released in Europe and Asia before the USA, Archos also has to choose to prioritize shipments to the European and Asian market, some markets also where Archos may be able to extract larger margins and satisfy resellers more evenly (a US reseller constantly having to be out of stock gets angry..). Over the past 3-4 months, monitoring the forums at http://forum.archosfans.com one can see hundreds of messages of American consumers being somewhat dissapointed not being able to buy the latest Archos G9 series of tablets, and due to Texas Instruments OMAP4460 1.5Ghz Processor being delayed, Archos can only really start shipping that promised 1.5Ghz tablet speed since recently. Also to consider, Archos has yet to annonce a 3G/4G/LTE USB Stick carrier for the US market, as the US market isn’t compatible with the rest of the worlds open unlocked 3G/HSPA+ SIM card USB stick system (I do believe some carrier, at least an MVNO should soon be allowing Archos provide a USB stick compatible with their network).

Consider this, Archos is a 250-employee company, with currently their record yearly revenue at 171,4 Million Euros ($224.669 Million). Apple has 60400 employees and a 2011 revenue of $108.249 billion. That means Archos makes 481 times less revenue than Apple. Yet, Archos manages to be second largest tablet seller in Europe behind Apple and tied with Samsung.

My theory is that if/when a company like Archos can get access to more cash, they can increase the mass production of their products and I think Archos has no problems selling out of all of their inventory, pretty much regardless of the worldwide region. The likely upcoming Socialist French President Francois Hollande (likely to be elected April 2012 instead of Nicolas Sarkozy) can make it a National priority to use State cash to invest in promising high-tech companies like Archos, France can heavily and rapidly invest in Archos to help Archos grab even more worldwide market share in a tablet market analysts predict to more than double again in 2012 compared to 2011. More investments can create a situation where Archos can expand R&D and Marketing/Sales efforts in Paris, thus upgrading firmwares even faster, developing new hardware skews faster, optimizing manufacturing and BOM techniques faster, something Archos can use to increase the value for money even faster making it even easier to sell all stock regardless of volume produced. With significantly more cash for more production, faster R&D, I believe Archos can grow and be the French high-tech company to seriously compete with Apple worldwide.

The Android tablet market has exploded in 2011. I believe the daily Android tablets activations worldwide has now overtaken the iPad2. The regular stack of analysts will only demonstrate that when they estimate Q1 2012 tablet sales in early April. I base my estimation on the fact most major latest Android tablets were released not before December 2011 (Archos G9, Kindle Fire, Nook Tablet, Motorola XyBoard, Samsung Galaxy Tab 7.0, Samsung Galaxy Tab 7.7, etc), thus counting since December 2011 (and not October 2011 as the latest analysts have) positions Android tablets even more favorably against the iPad2. If you count the Samsung Galaxy Note as a tablet (which most analysts aren’t), it’s even more obvious that Android tablets daily activations have overtaken the iPad.

With excellent value for money in Archos ICS-capable tablets, such as the $279 Archos 101 G9 Turbo 1.5Ghz, the $229 Arnova 9 G2, the $199 Archos 70b Internet Tablet and the $149 Arnova 7b G2, all of them imminently fully running Ice Cream Sandwich, (all those are MSRP prices, street prices can be 20-30% lower than MSRP with volume) I believe Archos is well positioned to continue their growth in tablet market share. It’d be awesome to see Archos find the time to also provide an OMAP4460 1.5Ghz 7″ Kindle Fire killer (at around $249) and a 5″ Galaxy Note killer (at around $199) tablet with USB 3G/4G/LTE stick support as my favorite tablet sizes are 7″ jacket pocket sized and 5″ pants pocket sized.

Revenue for the fourth quarter 2011

In M€ non audited	Q4 2011	Q4 2010	Var (M€)	Var (%)
EUROPE	46,3	24,6	21,7	88%
ASIA	8,7	2,2	6,5	300%
USA	10,2	8,8	1,3	15%
TOTAL	65,2	35,6	29,6	83%

Total revenue for 2011

In M€ non audited	2011	2010	Var (M€)	Var (%)
EUROPE	117,9	60,7	57,2	94%
ASIA	24,9	4,4	20,5	464%
USA	28,6	18,2	10,4	57%
TOTAL	171,4	83,3	88,1	106%