How low in prices do iPad competitors have to go to compete?

Discussion in 'iPad' started by aneftp, Aug 5, 2011.

  1. aneftp macrumors 601

    Jul 28, 2007
    Apparently the new HP/Palm TouchPad is already being marked down by over $100 less than weeks after it's launch. Now it's less than $400.

    Add the anemic sales of the vast majority of tablets.

    At what price point will consumers start buying other tablets strictly on value?

    Right now, it's estimated that the tablet manufacturing costs range from $300-350 per device (screen, memory, etc).

    So $400 has got to be a razor thin margin for HP to be selling their tablet when you factor in labor plus advertising costs.

    I know technology prices always go down in prices and maybe next year it may cost cost less than $250 to make a device. But apparently there are very few buyers out there for these discounted iPad competitors.
  2. spiderman0616 macrumors 68040


    Aug 1, 2010
    The longer it takes for Android tablets to become streamlined, user friendly, and well supported by developers, the more irrelevant this will be. Look at iPods vs. all other MP3 players as an example.

    At this point, I don't think anyone but a techie or a complete sucker who listened to a techie's advice would buy anything but an iPad or maybe a Galaxy Tab since Samsung actually bothers advertising their stuff.

    But in the end, the iPad is just becoming more and more synonymous with "tablet".
  3. dulaney22 macrumors regular

    Sep 9, 2008
    They are going to compete. Price really doesn't matter, it's just a time thing. Android is distancing itself from the iOS every day. Prognosticators said that wouldn't happen, but look now. Same thing will happen with tablets. I owned an iPad . . . it's boring. Most folks with them like the product, but think it's boring. As new features and upgrades come out . . . coupled with Apple sitting around twiddling its thumbs . . . more and more folks will pick the latest and greatest, especially at a cheaper price.
  4. poloponies Suspended

    May 3, 2010
    I don't know about there being "very few" buyers, just not the volume of sales necessary to make these products a viable category for most manufacturers. The iPad convinced people that a tablet fills a need (or want) and now everyone else is coming in to try to convince people that this previously-unrealized need (or want) can be better addressed by more computer-like features. I don't know if that's necessarily the right market to grow your business on. Sure there are millions of gadget-crazed feature-attracted buyers, but the much bigger market is the "I just want it to do stuff simply."

    If the latter group can be convinced that the competitor's offerings are just as user friendly then they'll buy. I just don't believe they're there yet.
  5. vrDrew macrumors 65816

    Jan 31, 2010
    Midlife, Midwest
    This is more of an "off the cuff" number than anything else, but I'd say you would have to have a device comparable to the Galxy 10.1 Tab selling for about $300 before Apple saw serious, widespread adoption by consumers of the competing device. And I'd hazard a guess at saying it would be impossible to retail any comparable tablet for that sort of price without losing money.

    An iPad "competitor" that sold at a $50 or $100 discount simply wouldn't entice that many consumers. People who buy tablets are smart enough to know that Apple App store is incredible - and that Androids Tablet marketplace is a wasteland. They also know that the iPad is going to work with their iTunes libraries, their iPhones, their Apple TVs, etc. They also place quite a lot of value on the Apple retail experience and the Genius Bar, etc.
  6. poloponies Suspended

    May 3, 2010
    Thanks for summarizing the user experience of 30 million iPad buyers. One man's "boring" is another's "just fine."
  7. aneftp thread starter macrumors 601

    Jul 28, 2007
    The reason I asked this question is I believe the iPad will enjoy a similar advantage like the iPod (although I don't think the iPad will maintain 70% plus market share like the iPod). But I believe competitors can only price their tablets up to a certain price point or risk selling at a lost. And in today's economy no one can afford to lose money for a very long time.
  8. dulaney22 macrumors regular

    Sep 9, 2008
    If a supersized iPod touch is what you like, good for you. I know many, many people who use both because they're foolproof.
  9. jaseone macrumors 65816


    Nov 7, 2004
    Houston, USA
    What exactly did you find boring about the iPad?

    The only thing I really find boring is the home screen but I actually like how Apple is keeping it boring as it is there to only serve the purpose of launching apps and I really don't want that cluttered with battery draining widgets, if I want that sort of experience I will just fire up one of the night stand type apps that does the whole clock, weather, Facebook, twitter & rss feed thing.

    The other thing that could be improved upon is the app switching, something like WebOS's cards or even simple three finger swipe left and right as I spend the majority of my time in a handful of apps.

    The apps on the iPad let me do just about any computing task I need to, a small sample:

    Citrix Receiver - Allows me to remotely support clients even those with SecurID tokens
    Koder - Allows me to make changes to my freelance clients' websites within a tabbed editor with syntax highlighting
    Kayak - Allows me to search for and then book flights for business or leisure purposes
    Tapatalk - Allows me to post this post
    LogMeIn Ignition - Allows me to log in to my home computer if I need to do something remotely
    Plex - Allows me to stream my movies/tv shows that weren't bought in iTunes to wherever I am

    I could go on and on... Just about the only thing the iPad can't do that I'd like, which is no fault of Apple's is to connect to my work's proprietary VPN to allow me to work on internal projects and do things like time sheets but the VPN is really strict with requiring Windows and having a virus scanner & firewall etc installed.

    So I'm really curious about what people find boring about the iPad, personally I think if you get bored on an iPad then when you switch to Android (I had a Samsung Galaxy S phone for a while so I know what Android is like) you will initially be all excited about a tablet again as you get to tweak things to your heart's desire but when you finish tweaking and start to actually just use your tablet you will once again become bored with it.

    I just don't think a tablet is suitable for many people, especially if they don't embrace it. For example once I got my iPad I was determined to leave my MBP at home all the time unless I know I am going to specifically need it for something that I can't do on my iPad like do some internal company work when away from the office. I know if I carried both the MBP and the iPad then the iPad would just sit in my bag a lot of the time but now I use my iPad all the time, at work it sits on my desk in my Incase Origami keyboard case connected to work's guest wifi so I can use it for breaks without disrupting the workflow I have open on my dual monitors of my workstation and elsewhere I just pull the iPad out to do whatever task I have at hand.
  10. Carouser macrumors 65816

    Feb 1, 2010
    Ah, the old 'they will be competitive in the future, just you wait' gambit, which is pretty much a spin on 'nobody is competitive at all right now'.

    I say under $200 to be competitive. Those with $350 to spend, but who can't wait and save for an iPad, will just do without a tablet.
  11. tstarks33 macrumors regular

    Jan 28, 2008
    We will find out soon. The HP Touchpad can be had for $299 right now at Staples.
  12. silverblack macrumors 68030


    Nov 27, 2007
    Are you sure you didn't mean to put $399?
    ($499 original - $100 coupon)
  13. tstarks33 macrumors regular

    Jan 28, 2008
  14. Sodner macrumors 68020


    Jan 12, 2011
    Pittsburgh, PA
    A guy here at work, a Windows Support PC Tech just bough his wife the Xoom tablet for $499 a Target.

    Suggested the iPad, but his wife plays those flash farming games and he wanted one the would support that. Hardly gave the iPad a thought becuase of flash.

    Oh well. Can't say he's not correct on the flash thing, but in the end he will regret it. :p
  15. 4DThinker macrumors 68020

    Mar 15, 2008
    $399. Acer dropped its $449 iconia tab to $399 and has since sold more tablets at that price than for all the time it was at $449. Helped that most stores carrying them had no $499 iPads to sell.
  16. Piggie macrumors G3


    Feb 23, 2010
    I have to agree that really price is not the thing.

    If you really want an iPad you will buy an iPad, if you can afford it, or you may save for it.

    Other people won't want an iPad but may in time want an alternative tablet.

    Why do people buy $1500 PC's when they could buy a Mac for the same price or less? It's because they don't want a Mac.

    Not everyone wants the same thing irrespective of price.

    I'm also convinced that in time there will be a very large market for very low priced tablets, but we are quite a few years from that.
    The market needs to be fully mature and very saturated before this type of thing happens and we are a long long way from that yet.
  17. jaseone macrumors 65816


    Nov 7, 2004
    Houston, USA
    Do the majority of those flash based games even work on the Xoom? Aren't Zynga and the like also releasing iOS native versions of those now anyway?
  18. ABCDEFGHIJKLMAO macrumors member

    Aug 5, 2011
    New Jersey
    low low low

    Galaxy Tab 10.1 $400
    HP Touchpad $300
    Blackberry Playbook $300

    other tablets should be lower than $200 to compete with iPad :D
  19. chris2k5 macrumors 6502a

    Jun 30, 2010
    $299 at staples is crazy price. At that price it should sell like hot cakes
  20. Highcroft macrumors regular

    Sep 9, 2007
    For me, $300 and a $50 gift that I had lying round was enough for me to get a Touchpad.
  21. Consultant macrumors G5


    Jun 27, 2007
  22. chris2k5 macrumors 6502a

    Jun 30, 2010
    Wish staples would give me my rewards already so I can buy one. Good price and enticing.
  23. poloponies Suspended

    May 3, 2010
    Thanks for the nostalgia trip to January 2010.
  24. AppleTech22 macrumors 6502

    Jul 10, 2010
    Ya I think we have seen this before. These PC companies with no innovative talent make something that looks kinda like an iPad, enough to make the dumber public believe it is the same product. Then they realize that they priced it at the same point as the better iPad and mark it down hundred by hundred until they are the same as most mobile phones.

    I'm not even surprised if we started seeing some Hit under $200
  25. palpatine macrumors 68040

    May 3, 2011
    i don't think it is about the price. competitors are already putting out tablets that are similar, if not superior to apple's hardware in terms of specs. i think some of them are quite beautiful. at lower prices they would be great deals in terms of hardware. yet, i am not tempted at all.

    1. will they be updated with future versions of android?
    2. will the companies provide adequate after-sales support?
    3. are there any apps i can use on it for my work?
    4. how polished is the experience?
    5. what kind of accessories exist for it (no good without a case)

    none of the tablets have made any of this clear to me. i feel like buying an apple iPad is a no-brainer because it is sure to play friendly with my mac, i'll be getting ios updates, the apple stores are fabulous, i have some really incredible apps on it, the experience is usually quite smooth, and there are plenty of accessories for it.

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