08-22-2011, 09:09 PM | #1 | |
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Did HP Ruin Tablet Pricing?
HP's TouchPad fire sale: The fallout
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08-22-2011, 09:22 PM | #2 |
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This will be a very good long term strategy. Tablet PC are future thats beyond any doubt and almost every mobile manufacturing company is coming in competition, that will ultimately drive a mad competition and ultimately end users will benefit from it
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08-22-2011, 09:28 PM | #3 | |
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No they are not. ----- is selling every ------ that it can manufactur at $---+. Customers want quality for their $. That they are finally buying at $400 off tells you what they really think of the non-iPad tablets. |
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08-22-2011, 09:32 PM | #4 |
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Quality tablet + low price = $250 Nook Color
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08-22-2011, 09:45 PM | #5 | |
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What this fire sale did is effectively remove tens (and maybe even hundreds) of thousands of consumers from the available tablet purchasing pool. That's gotta hurt all tablet makers. |
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08-22-2011, 10:16 PM | #6 |
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Rumor mill has consistently had Amazon aiming low, but more importantly they plan to offer more than competitors at that lower price, to a built-in audience that likes the company and its content offerings at just the moment (Ice Cream Sandwich) when Android for tablets reaches maturity (timing was how the then dying Motorola manged to compete with the 800lb gorilla HTC for a time).
Most android tablets to date have been generic. The transformer and thrive stand out a little, but they both could have done better. Notion Ink's Adam stands out more with a PQ option, but has a name no one can trust and the PQ tech apparently wasn't mature either. Some of tablet makers over-relied on carriers to make sales as if tablet sales channels would be the same as phone sales channels. Some used andriod 2.x and all the while, tablet support in the market was limited and confusing. All have charged too much, other than perhaps B&N. I'm not sure Amazon will succeed, but they certainly appear to be targeting a lot of converging sweet spots, and the HP fire sale demand almost confirms that if Amazon builds the right feature/price balance, the customers will come. |
08-23-2011, 06:26 AM | #7 |
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Here is the thing, from what iFixit can tell (think it was them) when they did the tear down, B&N is loosing money on everyone of them sold. B&N is counting on you buying books with it. Other company's will not sell at a loss like that, except Amazon might.
HP did not hurt tablet pricing... once they are gone, they are gone. 6 months from now the market will have moved on with no real impact. |
08-23-2011, 06:51 AM | #8 | |
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There will be an impact, because there'll be tens, if not hundreds, of thousands of consumers removed from the tablet buying pool. |
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08-23-2011, 06:56 AM | #9 |
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Disagree, I would bet most of them end up buying a second or third tablet. In fact the elimination of one OS from the market could push prices UP. But in the end my prediction is it has no impact, they were to small of a player, to small of a blip. In short, I predict the market will say "I dont care" in response to this incident.
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08-23-2011, 07:04 AM | #10 | |
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08-23-2011, 07:09 AM | #11 | |
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08-23-2011, 07:14 AM | #12 |
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I don't do "I told you so's".
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08-23-2011, 08:06 AM | #13 | |
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It might have been a different story if they'd been able to actually build them for less and but as is they're going to be making a huge loss on each sale, so it's not really a price that any other tablet maker would consider. Even Amazon who could possibly sell at a loss with a view to making money on the long tail of book sales would be a little nuts to consider it, since tablets are so multi purpose there'd be no guarantee people would buy books for it What it does show though, is what we've known all along, people cannot pass up a bargin, even if they might not really need it. If Amazon sells their tablet at £400 will it take off? Maybe. But if they then do a huge price discount as a limited sale I'd bet they'll sell the lot Just a matter of how far they could discount before they hit cost. * Figures are made up to illustrate the point** ** Point made up to illustrate the figures* Last edited by JoeD; 08-23-2011 at 08:08 AM. |
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08-23-2011, 08:46 AM | #14 | |
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I'd have bought one, even thought I don't really need another larger tablet (I want a new 7" one) (but they're not available where I live). But I agree, most people just want a tablet to sit on the couch to surf a bit. And they won't buy a second one if the first does exactly what they want. |
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08-23-2011, 08:47 AM | #15 |
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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.
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