iPad wannabes’ big problem: They can’t beat or even match Apple iPad’s price

“The iPad 2, unveiled on Wednesday, offers several sleek improvements over its predecessor,” Jenna Wortham reports for The New York Times. “But its most attractive feature is perhaps the same one its predecessor had: the price tag.”

“And what makes that feature even more compelling is that so far, Apple’s competitors in tablets cannot beat or even match it,” Wortham reports. “The iPad 2, like the original, starts at $499.”

Wortham reports, “Dozens of hardware manufacturers are scrambling to bring their own variations to market this year: Hewlett-Packard with the TouchPad, HTC with the Flyer, LG with the G-Slate and BlackBerry with the PlayBook. But prices, or even release dates, have not been announced, and industry experts say it is not yet clear whether the devices can be competitive with Apple on price… ‘The iPad may continue to own the market if competitors don’t get more realistic on their pricing,’ said Rhoda Alexander, an analyst at IHS iSuppli, a research firm. ‘Right now, it’s too high relative to what the iPad has for the product.'”

Read more in the full article here.

[Thanks to MacDailyNews Readers “JES42” and “Whit D.” for the heads up.]

33 Comments

  1. Look it this way…
    Imagine that BMW decides to lower thier prices to the equivalent of a Kia or Saturn or Geo….
    How would it be for the rest of the car makers? they will only be able to seel cars to ignorant people that don’t know other choices.
    That’s what is happening with the iPad.

  2. Hilarious. For what seems like forever, the main argument Apple’s competitors had was “Well, sure Apple’s stuff is better, but it’s so expensive! Our product is almost as good, and a lot cheaper!”

    Well, now the competitors’ products are “almost as good”, but more expensive. Why do they even bother? Who’s going to buy these things? Android nerds with more money than sense is all I can think of.

    ——RM

  3. ‘The iPad may continue to own the market if competitors don’t get more realistic on their pricing,’

    Ha ha, the funny thing is their prices ARE realistic. They are prolly running a money losing margin as it is. My bet is that when the accounting is done, it’s be a redux of the netbook phenomena that got them where they are now!

    1. How come they can’t match the iPad pricing, while they seemed to be able to offer netbooks at sometimes much lower prices (<$400) ?

      Maybe the user experience didn't count then?
      Or they hadn't realized that tablet computers address a different kind of market with higher expectations

      1. The user experience counted, but, across the board, everyone was offering Windows, so you only had to work SO hard.

        In the “slate” market, if EVERYONE was running Android or Windows or something else, then, given the same software, they’d put in the bare minimum hardware to make it work. BUT, with iOS out there, they have to bump up the hardware because the Android OS really doesn’t shine.

  4. Easy to do when you own the flash and display supply and provide your own processor. This is a serious issue for the other hardware manufacturers. Nevermind the ecosystem/OS/etc. The competition cannot buy the hardware anywhere near the price Apple is getting based on volume. The bloodbath will continue.

  5. I just love this quote from Motorola:
    “The Xoom is priced exactly where it has to be,” he said.

    Mr. Mutricy said he did not think the company would do anything differently to trim costs.

    “It’s not that we are trying to lower the price and cannot,” he said. “We are pricing the Xoom based on what we are offering consumers.”

    What they are offering to consumers:
    No Flash
    No LTE
    No working Micro SD Slot
    Everything the EXhume was supposed to have that the iPad didn’t have.

    “Coming RSN”. 😉

  6. Why do those damn Android fanbois keep talking about these $300 10″ display high-quality Honeycomb Tegra2 tablets that are going to be available soon and will undercut Apple and put them out of business?

    How would smaller companies manage to compete against a cash-rich company like Apple when most of those small companies can’t even get a decent supply of components. It’s like Android fanbois don’t have any sense at all about manufacturing costs. The fanbois somehow think that tablets are as simple and as cheap to build as a netbook. I’m sure some companies can build junk tablets for cheap, but I doubt that the average consumer would want to be using them. I just get some darn sick of listening to those Android fanbois and their delusions of consumers buying up Android tablets by the millions.

  7. Apple could probably sell iPad priced between $699 and $999, and Apple would still sell them as fast as they care to make them, and make even more overall profit on iPad.

    Instead, Apple is using the ridiculously high profit per iPhone sale to compensate for lower profit on iPad, and selling iPad starting at $499. Still, it is remarkable that Apple can make any profit at that retail price; the profit margin is probably still at least 20%, considering the remaining first gen iPads are being sold for $399. If the competition tried to sell their tablet at $499, they would lose money on every unit sold.

    And THAT is Apple goal. To make iPad 2 unmatchable at $499, even with a far inferior competing product. If they try, they lose money on every unit sold. The only tech company capable of trying that strategy is Microsoft, but after the Zune experience, I don’t think even Microsoft has the stomach to try their own self-branded “Zune Tab.”

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