- 06-27-2012, 04:59 PM #1
As I stated here a few days ago, "I think the future success of Android tablets will be confined to budget types like Nooks, Kindles and Tabs in the sub $300 range. I think premium tablets like the Xoom and Sony S will be hit the hardest."
I think pricing the Nexus 7 at $199, with the hardware it has will force OEM's to price their tablets similarly. Probably, forcing them out of the "premium" tablet market. I'm still not certain how OEMs will pull it off since the Kindle Fire and Nexus 7 are more than likely taking a huge hit in profits at such a low price. This should leave the iPad and Surface to duke it out.
06-27-2012, 06:40 PM #2
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It's a 7" tablet with a phone OS, as-of-yet-undetermined build quality, no forward-facing camera, no serious productivity software like MS Office, etc.
I think Google just slayed the Kindle Fire. I don't think the Nexus 7 is a serious threat to the iPad and Surface and the like, just as the Kindle Fire wasn't. It's a very different market for people who use tablets in very different ways.
- 06-27-2012, 06:52 PM #3
I think you misunderstood what I was trying to convey. I never said the Nexus 7 was a threat to iPads and Surface. I think the Kindle and Nexus 7 represents the area in where Android can do well in the tablet space. Premium Android tablets like Xoom and Sony S are not doing very well, while the low budget Kindle has made a name for itself. I think OEMs will follow their lead and concentrate more at this price point and eventually leave the premium stuff to iPad and Surface.
- 06-27-2012, 07:14 PM #4
The iPad will remain resilient; but Microsoft should realize that it is treading on dangerous water and will need to price the Surface tablets accordingly. The Surface Pro could retain a premium pricing since it is running on Windows 8; but the ARM Surface will need to be priced fairly closely to the Nexus 7.
Microsoft should be able to accomplish this; considering the Surface will be on a Tegra chip as well; however, there's a chance that it might mess it up. Hopefully, the Surface is <$300 but I won't hold my breath.
OEMs like Samsung and Motorola have a chance of being squeezed out the tablet market entirely.
06-27-2012, 07:16 PM #5
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iPad gets the premium market and Nexus 7 gets the cheap market (along with those really bad ones you find on Amazon that are like $80).
Surface RT will fail because it is priced so close to the iPad (don't preach to me about it, the 'majority' will always go for the iPad).
Surface Pro will fail because its just too expensive when you could really just do without the touch and get a laptop for half the price.
- 06-27-2012, 07:24 PM #6
You can play WoW. You can use Microsoft Word. You can use Photoshop. Consumers will be willing to pay >$500 for a device that does this. Also, this time next year, practically all laptops on the market will be retrofitted with touchscreen to accommodate Windows 8 save for the lonely Mac.
I think the Surface Pro might still survive; but, the Surface RT will definitely fail unless the price is set extremely low.
- 06-27-2012, 07:32 PM #7
Last edited by ninjaap; 06-27-2012 at 09:52 PM.
- 06-27-2012, 09:07 PM #8
Nexus 7 is limited. Only 8GB to start with no expansion. In addition the Android Market aka Google Play doesn't allow Tablet exclusive apps. So you are getting mostly glorified phones apps (yes I run Android 4.0 on my HP Touchpad) with a small posibility of refined Tablet GUI. So no unique coding to take advantage of a tablet with more features in apps where it would make sense (like photoshop). In addition it restricts innovation where an app wouldn't sell for phones but would make sense for tablets. Microsoft and Apple are much smarter about this.
Similar selling strategy compared to Microsoft. Only currently thru them (they are looking at retail options but admit it will raise price). Microsoft has advantage of having actually brick and mortar stores and not just online prescense.
- 06-27-2012, 09:39 PM #9
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- 06-27-2012, 11:03 PM #10
- 06-27-2012, 11:37 PM #12
"I think Microsoft should try for structured price points: WP (~$200 on contract) ARM (~$300-$500) x86 (~$600 & up). It is what Apple is doing with it's products. They pretty much have every price point covered from iPod, iPhone, iPad to OSX. I think it's crucial to create some sort of order/standard (software & hardware), so you don't get people buying substandard, $300, x86 machines and have it run like crap, giving the user terrible experience."
If MS confines RT (ARM) to a cheaper price point than Pro (x86) then that will give an immediate impression, letting consumers know that the RT is the Windows Starter, of sorts, to the Pro. But if you allow OEMs to manufacture subpar x86 machines and price them similar or cheaper to ARM machines, then that devalues the Surface RT. Why would anyone buy a Surface RT when I can get an Surface Pro-like, x86 machine, made by HP, for the same price?
- 06-29-2012, 09:36 AM #13
06-29-2012, 12:11 PM #14
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The Nexus 7 is just Google's attempt to give the masses a taste of Android. It is most likely directed towards those that traditionally use Apple products to make them feel that life outside iOS isn't scary. I think the biggest dent it will cause is on the e-reader market because people will still want top of the line hardware, and bigger screen size at the end of the day.
Also, a lot of people are suggesting that Google is heavily subsidizing the Nexus 7 to allow for the low price so it remains to be seen how long they can sustain that.