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Tablet Manufacturers Reevaluating Pricing Options in Light of iPad Announcement?

DigiTimes reports that several Asian notebook manufacturers were taken by surprise by the unexpectedly low entry-level $499 price point for Apple's iPad, forcing them to reconsider how they will price upcoming tablet models.

The vendors originally planned to offer prices pegged at 20-30% lower than the Apple iPad, while they generally expected the device to cost as much as US$1,000. The US$499 entry-level price has caught vendors by surprise and means they will now need to adjust their price scales even lower to attract consumers, the sources pointed out.

The report notes that manufacturers are reluctant to undercut the iPad price and start a pricing war for fear of eliminating profit margins even before the industry can really take hold. The fears seem justified in light of plunging netbook prices, which have reduced profits in that segment to razor-thin margins even as unit sales have exploded.

Reports as long ago as last August claimed that tablet manufacturers were holding off on new designs for their products until they could see what Apple's contribution to the market would be.

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27 months ago
Sounds like tablet manufacturers need to read more forums. No one with common sense thought it would cost $1000
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27 months ago

The vendors originally planned to offer prices pegged at 20-30% lower than the Apple iPad, while they generally expected the device to cost as much as US$1,000. The US$499 entry-level price has caught vendors by surprise and means they will now need to adjust their price scales even lower to attract consumers, the sources pointed out.

Must be pretty surprising, especially when $499 was hardly ever rumored.
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27 months ago
^^ You know, that is odd... I'm assuming Apple will be doing their usual, and they're getting some 100% profit margins or better across the line. So that intro iPad is costing Apple around $250, I would imagine. That sounds like a major miscalculation for these smaller Taiwanese companies that never had the 100% margins to begin with.

I'd like them to bring it... if they've got something credible as an alternative, I'd like to know what it is, even if it's only competitive with the high end of the Apple price list. The iPad goes up to $830, right? Now we can talk about an $800 tablet from Taiwan, but not if it has a plastic capactive screen and 8GB of SSD space.... If they can put 128GB, a glass multi-touch screen, and a comparable battery in a tablet weighing less than 2 lbs, and they market that in the $650-850 range, I think I would be willing to give them a listen.
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27 months ago
Well... Gotta hand it to Apple to grab the market. I bought :p the $1K price point story, too.

On the other hand, it'll be interesting to see what the competition offers. Maybe grab a good deal on something that can multitask. And who else will be offering 3G access (or more) for $30-$40.
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27 months ago
If they can make and sell a Netbook with a physical keyboard for $250 then they can make a net book with no keyboard for even less.

All they have to do is remove the keys and place the LCD where the keys were and save the cost of not only the keys but the hinged cover too.
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27 months ago
I have a laptop. Why do I want anything else?
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27 months ago
The irony is that the iPad will probably be made in some Asian sweatshop factory alongside other laptop manufacturers where the workers get a dollar a day and sacked for taking more than a single toilet break !!
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27 months ago

If they can make and sell a Netbook with a physical keyboard for $250 then they can make a net book with no keyboard for even less.

All they have to do is remove the keys and place the LCD where the keys were and save the cost of not only the keys but the hinged cover too.


The real question here is will Microsoft deliver on a good touch interface.

And puhleezz. Don't link me to the vaporware courier or HP's smart-touch because the iPad interface knocks that to death.
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27 months ago
I can't wait. Looks like my MBP is staying on my desk, while my iPad is used all over the house. No 3G iPad for me since I have an iPhone....
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27 months ago


I'd like them to bring it... if they've got something credible as an alternative, I'd like to know what it is, even if it's only competitive with the high end of the Apple price list. The iPad goes up to $830, right? Now we can talk about an $800 tablet from Taiwan, but not if it has a plastic capactive screen and 8GB of SSD space.... If they can put 128GB, a glass multi-touch screen, and a comparable battery in a tablet weighing less than 2 lbs, and they market that in the $650-850 range, I think I would be willing to give them a listen.


If anyone has the pixel Qi screen, which can make text more readable and give you great battery life, it should be a serious competitor.
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