As companies continue to remix their tablet offerings, providing a plethora of sizes and features that suit the market's appetite for these mobile devices, there is now a concerted effort to do battle over price.
Not only will the price equation further exacerbate uncertainty about which company will win the tablet wars, but price competition reveals what many electronics manufactures have already figured out: If they can't compete in the first tier of the tablet market, there is room to grab market share in the second or third tier.
Ever since Hewlett-Packard Co. (NYSE: HPQ) decided to drop the price of its TouchPad tablets and sell the product for $99, which sparked a fire sale one weekend during the summer of 2011, companies have been eying the possibility of offering a tablet with a $99 price tag.
A little over a year ago Lenovo introduced the Lenovo IdeaPad A1 7 inch for $199. We've also had products with fewer features that satisfy the lower end of the market such as the Amazon Kindle Fire, the Google Nexus 7, and the Samsung - Galaxy Tab 2 Tablet. These are products with fewer features such as screen resolution or storage space, but can still satisfy consumers who are looking for a tablet that sells for less than $200.
Now, Asus has introduced its 7-inch tablet, the Memo Pad ME172V, which will ship for $149. Acer has launched the 7-inch Iconia BI tablet in India and reports are that the company plans to introduce this tablet in the US with a $99 price tag. There are also rumors that Google is planning to unveil a $99 Nexus tablet sometime this year.
Let's face it; there is a market for lower-priced tablets. That said, companies like Apple Inc. (Nasdaq: AAPL) and Samsung Electronics Co. Ltd. (Korea: SEC) that have cornered the high-end market want as much market share as they can grab, and will be hard pressed to surrender market share to other competitors. The ripple effects of a change in market demand come with other unwanted consequences such as a possible rise in inventory levels as demand slows. Years of planning can be dashed when forecasts don't match the realities of retail sales. Already, Apple is trying to inoculate itself from such disruptions.
The introduction of the iPad Mini, for example, gives Apple the chance to break through the $499 price point of the larger iPad, giving consumers a 7.9-inch tablet at a lower price. However, the 16GB iPad Mini sells for $329, the 32GB model has a price tag of $429, and the 64GB sells for $529. It will be interesting to see if Apple decides to offer tablets below the $200 mark, but for now the company has decided to leave that battle to others in the market.
In the meantime, the slow sales of Microsoft's Surface RT tablet during the Christmas season indicates that the tablet market may not be as strong as many thought. Consumers may have settled on Apple or Samsung for their high-end products, and may not want to entertain another alternative that sells for around the same price and does much the same thing as other competing product. The Surface RT sells for $499 for the 32GB tablet, $599 for the 32GB tablet with a touch cover, and $699 for the 64GB version with touch cover.
As it begins to compete in the tablet market, one wonders if Microsoft might not have fared better if it had introduced a tablet at a lower price. It's always good to remember the lessons of the HP TouchPad when it sold for $99, and the enthusiastic sales that followed.
Price does matter. The question is how low will companies go to offer a price tag that grabs consumers, yet still covers supply chain costs while making a profit? I'm willing to bet we will see much cheaper tablets this year. How companies serving the high-end of the tablet market will react to this new reality is anyone's guess.
You have a point of paper and pens disappearing in the future. I notice many kids nowadays are playing with games on tablets. They do colouring of objects on tablets instead of on real paper. And by the time they are in primary school, they are already competent in using smart devices and computers.
Nicole, you are right, most of the companies are offering low cost tablets starting from $99. If companies are slashing the tablets prices like this at one point of time there may be chances that tablets are cheaper than smartphones.
@t.alex: according to other posts, I am with you; maybe tablet is good for professionals which are impacted by mobilities needs and so on; students usually uses CPUs at home, schools, biblio and mobilities needs are quite limited. We could compare them to nomadic users, instead of mobile users.
So, in short, there will not be paper, pens, pencils, but only digital paper and digital pens. This is not science fiction, it's already happening in some parts of the world.
@Susan, yes the trend has already started. I dont deny it. I am just worried if its good for the kids to totally depend on technology.
With a laptop, they can do whatever a tablet can do and more than that - their assignments as well. With a tablet, the functionality is limited somehow.
@t.alex, you are right. Laptop is more useful to the students compared to tablet. Computational power of laptop is far more compared to tablet. Morover the size the of laptop has reduced drastically and is very easy to carry just like a tablet.
For students, would it be better if the government subsidize laptops instead of tablets?
With a laptop, they can do whatever a tablet can do and more than that - their assignments as well. With a tablet, the functionality is limited somehow.
"I hope students will not discard using paper/pen just because they have accessibility to latest technology."
I am sorry I will disappoint you on your hope of future generations learning/having the same writing skills you learned, and using paper and pen. They simply won't.
The fact is that we are already on the path toward a paperless world. If there will be no paper, there will be no pens. Therefore, it will not be a matter of choice, but rather a matter of using/adapting to the new ways of expression and communication. The future generations will not write on paper, as there will not be any paper on where to write.
So, in short, there will not be paper, pens, pencils, but only digital paper and digital pens. This is not science fiction, it's already happening in some parts of the world.
As for forgetting writing skills, there will be a point in the future that writing skills as we know them won't be needed anymore.
@Susan, may be you are right writing will become obselete someday and that is what my concern is. Althought I am avid computer user I still prefer solving, analysing things using paper and pen because it provides me more flexibility. I hope students will not discard using paper/pen just because they have accessibility to latest technology.
Yes, the digital pens you can use today have no point of comparison with the older ones. Technology has improved also in the digital pen world. :) Just go to an electronics shop, and try one. You will notice the difference.
Have you tried them to see how you feel using them?
@Susan, yes I have used digital pens long back but I didn't feel comfortable using them hence I stopped using them. May be I guess latest digital pens offer more resolution and clarity compared to earlier digital pens.
While some parts of the high-tech supply chain network can be improved by implementing policies and procedures, other parts of the network are beyond the control of even the most skilled supply chain executive.
As Intel improves its chip technology and deals with a declining PC market, the company is still making a concerted effort to improve its supply chain.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
To save this item to your list of favorite EBN content so you can find it later in your Profile page, click the "Save It" button next to the item.
If you found this interesting or useful, please use the links to the services below to share it with other readers. You will need a free account with each service to share an item via that service.
Tweet This