Apple Inc. (NASDAQ:AAPL) has been the heartthrob of the mobile community since the release of the original iPhone in the summer of 2007. This amazing device launched Apple Inc. (NASDAQ:AAPL) to the forefront of the cell phone market, and cemented its role in history.

The next big deal for the Cupertino, California based tech giant was the release of its iPad tablet in 2010. This mobile computer had much more capability than the iPhone and its name quickly gained popularity among the mobile community.

iPad 2 Dominates Market

Apple Inc. (NASDAQ:AAPL) released its second generation iPad and this one seems to be its best model ever. The fifth generation will be released tomorrow, according to ValueWalk’s Paul Shea, but it will most likely be standing in the shadows of iPad 2 sales.

Since its release in 2011 the iPad 2 has been an Apple Inc. (NASDAQ:AAPL) money maker. Its sales amazed investors and analysts alike. The market was swamped with people begging for the iPad 2. Now, with its fifth generation about to be launched, Ipad 2 is still its biggest seller.

iPad 2 Will Dampen Sales

The newest iPad model, the iPad 5, will not sell as well as previous models because of the iPad 2. The popularity of the older model simply drowns out each subsequent iPad that has been released. This doesn’t really bode evil for Apple, as the profit margins on an iPad 2 are still fairly high. However, it does beg the question of why the tech giant would release more iPad models if the second generation continues to be so popular. Why not make more of the iPad 2?

Activity Report Shows The Truth About iPad

According to a Localytics report, of the iPads that are currently activated, 38% of them are second generation models. iPad 1 holds 8% of the market share, while the third generation model holds 19%. The iPad Mini also reports a market share in the high teens.

Apple Competing With Google For Mobile Market

It is no secret that Apple’s biggest competitor in the mobile market is Google Inc. (NASDAQ:GOOG). Under the leadership of Larry Page, the Internet giant has become dominant in the mobile market with its Android OS. Now, Apple is undoubtedly releasing newer models of the iPad simply to keep up with Google Inc. (NASDAQ:GOOG) and other competitors.

Tables Turned In Share Prices

Last year Apple Inc. (NASDAQ:AAPL) hit a high water mark of over $700 per share while Google Inc. (NASDAQ:GOOG) was steady in the $400 to $500 range. Now, the tables seem to have been turned with Google currently trading at more than $1,000 per share and Apple trading at just under $520.

Will the iPad 5 boost Apple back up? Only time will tell, but for now, Google remains the top dog in terms of cost.