The iPad’s price poses some problems for Tablet PC manufacturers
January 31st, 2010 - 01:29 pm ET by C. D.
Some tablet manufacturers thought that they would be able to easily position their products at 20% below Apple’s iPad when analysts were pricing it at about 1000 dollars. With a starting price for the iPad at 500 dollars, the playing field has changed.
While the arrival of a tactile tablet had been anticipated for months, very few details about the devices characteristics were confirmed before its official release, leading to a lot of speculation and innuendo, especially surrounding its price.
Little by little, analysts started to come to the similar view that the devices possible price may be around 1000 dollars, taking into account the technologies provided and Apple’s normal commercial strategy. A number of computer manufactures started looking at launching products in this same line thinking that they would be able to undercut Apple’s price, proposing their tablets at lower prices.
At 499 dollars, things aren’t the same The site Digitimes reports that numerous Taiwanese computer manufacturers who wanted to invest in the tablet PC market, like Austek and MSI, have now been discouraged by the price of the entry level iPad: 499 dollars.
By basing their estimations on a 1000 dollar product, these makers were hoping to position their releases at between 20 and 30% below Apple’s product. The 500 dollar version is the entry level release that makes up Apple’s aggressive strategy to attract users. This release will be used to try and attract consumers, with the aim then being to seduce them into taking one of the higher range models.
But trying to wage war under 500 dollars may pose some profitability problems since the tactile tablet market is just developing. Manufacturers may therefore look for alternative solutions to avoid getting into a bloody pricing war.