“How is it that Apple is able to beat every single tablet vendor on price?” Jason Perlow asks for ZDNet. “Their secret sauce: The supply chain.”
“We really don’t know what is going to be in the next iPad, although we can make some educated guesses. However, I think we can be fairly certain that it will be announced soon, and that it will have a feature set that will allow it to be competitive with any Android 3 tablet due for near-term release, but most importantly, the base model will not exceed $500.00 in price,” Perlow asks. “This is something that no matter how hard they try, none of the other Tier 1 consumer electronics manufacturers are able to do. It’s probably flat-out impossible.”
Perlow reports, “Apple has set the bar at $500.00 for an entry-level 10″ Wi-Fi tablet device. So far, there are no products scheduled for release by a Tier 1 manufacturer that even come close to this price point. How is Apple able to do this where nobody else can? It has to do with buying up the entire supply chain and being able to leverage quantity 10 Million+ manufacturing orders in advance with its partners in China like FoxConn and with semiconductor component suppliers such as LG, Samsung and Philips.”
Full article here.
[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]