UBS analysts have raised their 2011 forecast for tablet sales, now predicting sales of 37.9 million iPads and 22.2 million Android tablets, a total 60.1 million units. Android sales rose from 3% in 2010 to 37% in 2011. 2012 estimates are for worldwide sales of 90 million tablets.



Maynard Um of UBS issued a note to investors, noting that checks had indicated “soft sell-through for non-iPad tablets.” He sees growth in the tablet industry being driven primarily by Apple’s touchscreen tablet.



“The tablet market has seen a significant increase in shelf space and competition in the past quarter,” Um said, adding that there is “limited visible differentiation” between non-iPad devices. Based on anecdotal retail checks, Samsung and Asustek are stand-outs, while Research in Motion and Hewlett Packard “do not appear to be gaining any critical mass.”



According to his calculations, Samsung will sell 5 million tablets in 2011, while Asus is expected to sell 2.2 million. Meanwhile, RIM and HP are projected to sell 1.9 million and 0.8 million respectively.



UBS predicts a possibility for an “inventory correction” which would see the first top-line Android tablets discounted and create the first real differentiation in the market. Android will continue to increase market share, and iPads will continue to increase sales, albeit at a slower pace.