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New Low-Priced Tablets Will Attack iPad’s Weak Point

September 3, 2011

Some points from an article on Sci-Tech-Today.com:

“When Hewlett-Packard dropped the price of its discontinued TouchPad tablets to $99, they sold out almost immediately. Now Amazon.com, Lenovo and others could change the price point for competitors to Apple’s iPad , and thus the dynamics in this category.”

HP dropped the price of a $500 tablet to $99. They did not make a $99 tablet. If they made a $99 tablet it would have been a big peice of junk. Just because it is cheap, does not mean people will buy it. 

Kmart was selling a $180 Android tablet last year and no one bought it because it was made cheap to be sold cheap. 

“Lenovo just announced its IdeaPad Tablet A1, an Android 2.3, Gingerbread, model with a seven-inch, 1024×600 display, 8GB of storage , and Wi-Fi  priced at $199”

Ok, this sounds good. A lower cost Android based tablet running the newest tablet-ready version….No, Wait…Android 2.3 is not Honeycomb. Android 3.x is the Honeycomb version for tablets that has a specific tablet UI that scales to the larger screens rather than using the Android phone version and stretching it out way beyond its means. 

According to Engadget, the Tablet A1 has a very low chance of being upgraded to Honeycomb.

“Many industry observers expect Amazon to release one or more low-cost tablets by the end of the year, possibly at a loss so it can make money on providing content”

This part makes sense. Amazon has speant some time building up a media library and download service including an Android App Store

The biggest reason that the iPad is so successful is because Apple has built a big ecosystem around the iPad to provide everything you need in an easy to use way. iTunes and the iPod was just the beginning but over time Apple added movies and games. After the iPhone was released in 2007, Apple released the App Store in 2008 and finally the iPad which was born into a privileged life where everything was ready and waiting for it. 

The balance these tablet makers have is to make a competitive tablet that performs well and looks decent but also hits the lower price points they think will help them sell. 

 

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