Did HP Ruin Tablet Pricing?

[VydorScope]

Originally Posted by Ankh

Like you, I am not convinced that these buyers are -- by and large -- "removed" from the market. But I am pretty certain that the message sent to the tablet manufacturers was clear, the market is there, but not at the price of full blown laptop. The price tag that is same, or cheaper, than the (entry level?) netbook is more like it. I would be surprised if there is any room to push prices up.

Dont think so, I think Xoom set the upper end.. and Asus set the more practical level, just saying a removal of an competitor creates upward pressure in the market. I think there is enough pre-existing downward pressure to counter it though. Time will tell.

[Hellmark]

The Eeepad starts at $350. For many people, that is still too high. If they shaved $100 off that, sales would see a large uptick. Why would I want a tablet for $350, when I can get a laptop, that can do more for the same. That is about how much I spent for my tabletpc.

[ilovejedd]

Originally Posted by Hellmark

The Eeepad starts at $350. For many people, that is still too high. If they shaved $100 off that, sales would see a large uptick.

+1. At $100, the TouchPad is a cheap enough tablet that most people wouldn't care if there's no continued support for the platform. However, I'd reckon $250 for a decent Android tablet is the sweet spot for a lot of folks. Heck, isn't that why the Nook Color has been pretty popular?

While I do have a Nook Color, iPad and recently bought a TouchPad, I'm still waiting for an $800 max, lightweight Windows 7/8 Slate with at least Core 2 Duo E6600-level performance and 8 hours or more battery life. Hopefully, that might actually be achievable with 22nm Ivy Bridge. Right now, the 35W TDP Pentium G620T is already on par with the E6600. I have an 8.9" Fujitsu tablet (convertible) running Windows Vista Business which, if not for the weight or battery life, would be my favorite among the ones I own. Handwriting recognition is decent enough that I very rarely had to make use of the physical keyboard. However, battery life is just too short and the device is just too heavy to use comfortably for long periods of time.

[jersysman]

I think that tablet makers, in general, would heed what has happened. The utility of the product that they provide is not worth the price that they are now charging. A lot of consumers like what a tablet has to offer, but are being very selective with their funds when it comes to making the final sale. Lots of reasons for this e.g., the economy, would rather get a full-blown laptop for that price, size (some prefer 7" instead of the 10" that manufacturers are pushing). The early adopters have purchased their tablets and will continue to do so. If the manufacturers have any hope of pushing these tablets into the mainstream, the price point, in my opinion, will need to fall into the $300 - $399 range.

[RockdaMan]

Originally Posted by tubemonkey

Amazon would sell cheap to get buyers into their ecosystem.

http://www.mobileread.com/forums/sho...d.php?t=147188

[Penforhire]

HP was insane, coming to market with a comparable price to the iPad to begin with. You can't attack the market leader without offering an edge. Why do companies not realize that Apple offers more than rabid fans? There is an ecosystem, with applications and accessories, in addition to hardware that works reasonably well. You could have better hardware but it still wouldn't justify a higher price. Technology for its own sake only sells to geeks (like us). The general public is buying for other reasons.

Are tablets overpriced? Apples sure does sell as many iPads as they can pump out. So the answer is probably no, they're not priced too high. Some others (Motorola Zoom, I'm looking at you)? Oh yes.

[RockdaMan]

Originally Posted by Penforhire

Why do companies not realize that Apple offers more than rabid fans?

Technology for its own sake only sells to geeks (like us).

Well done.

[OtterBooks]

"The rub: No tablet maker can make money at HP’s fire sale prices."

Of course they can't. Can they even make money at $250? I'm not talking about granny cookbook readers like the Nook Color, but tablets with modern hardware and performance. And that's assuming people ever start wanting to buy them.

[RockdaMan]

Originally Posted by OtterBooks

granny cookbook readers like the Nook Color

[David Marseilles]

Originally Posted by OtterBooks

Of course they can't. Can they even make money at $250? I'm not talking about granny cookbook readers like the Nook Color, but tablets with modern hardware and performance. And that's assuming people ever start wanting to buy them.

I've seen this type of sentiment a few times recently. You realize the nook color is just a hair's breadth from the Galaxy Tab in terms of specs, right? It is becoming dated as the cutting edge bar inevitably inches higher, but it still isn't a granny cookbook reader and it had modern hardware and performance at launch.

Even at that, pricing in the $250 range surely requires subsidy. B&N tried to lock things down to their eco-system while Amazon's offerings are compelling enough that they probably won't have to use a lock to make a profit off books, music and videos purchased by their tablet buyers.

[RockdaMan]

Originally Posted by David Marseilles

IYou realize the nook color is just a hair's breadth from the Galaxy Tab in terms of specs, right? It

Specs don't tell the whole story -- the whole world knows that. If it did, Apple would have died 1000 deaths by now.

[Barty]

Originally Posted by Penforhire

Are tablets overpriced? Apples sure does sell as many iPads as they can pump out. So the answer is probably no, they're not priced too high. Some others (Motorola Zoom, I'm looking at you)? Oh yes.

The xoom pricing was nuts. They didn't even have a wifi only model at launch, so the cheapest xoom was like $700 iirc. Then the iPad 2 came out soon after and was thinner and lighter. D'oh. People talk about the apple premium, but how about the anti-Apple premium? Paying more so you can buy anyone but apple.

I like what Samsung did. They went back and reworked their tablet . The Tab 10.1 looks good. I don't like 16:9 ratio though. It's only good for watching TV. I think apple got that one right.

The best hope for a cheap good tablet is Amazon. They're the only one with the cash and business model that allow them to sell one at or below cost.

Or we can hope Samsung decides to quit the tablet market to concentrate on TVs.

[Bilbo1967]

Originally Posted by Penforhire

Are tablets overpriced? Apples sure does sell as many iPads as they can pump out. So the answer is probably no, they're not priced too high. Some others (Motorola Zoom, I'm looking at you)? Oh yes.

Given that the equivalent XOOM and Ipad are identical prices, I just don't understand that.

[joenunya]

for a basic consumption ONLY device, no way I spend over $200 for a something with a 10.1" or larger display. 9.7" is flat too small for many of the reading needs I have, even in a 4:3 screen ratio. a 16:10 10.1" device is not as useful as the same display in a 4:3 format but it's better than 16:9 for what I would consume.

If makers want to charge laptop prices they need to deliver a content creator device with a full color gamut display system not the crippled color gamuts they all currently deliver. An active digitizer is a given for my purposes as well. This device I would consider buying at about $300-$350 max with front end hardware no real significant corner cutting.

[GlennD]

Originally Posted by Bilbo1967

Given that the equivalent XOOM and Ipad are identical prices, I just don't understand that.

The equivalent models are the same price, but as Barty mentioned they came into the market with only the 3G models. I think a lot of people look at the ipad and figure 'around $500', then when they actually go to buy one they get sold on extra storage or 3G. Xoom didn't give that option originally - minimum price was $700. Given that one of their main competitive points with the ipad (the SD slot) wasn't even functional (and still isn't on US models, from what I understand?), it was too high an entry point to compete.

At the same price, you have to show consumers what your model has that the incumbent market leader (the iPad) doesn't. Go below the ipad pricing, people will start to shrug off minor differences and look at your product.