As we have continuously predicted, the tablet market is basically going to be a race to the bottom. It’s only a matter of time until Apple’s hold of the tablet market will finally disappear. You have to face it ? if you are using an iPad to access the Internet to play around with all sorts of apps, you’re basically paying a premium of 200 dollars just to have that cool Apple logo at the back of your machine. Sure, it may make a lot of people with fairly low self-esteem give you the respect that you crave but at the back of your mind you know that this isn’t gonna last. And you are absolutely correct.
The tablet market is going to shape up just like the smartphone and the desktop markets. Remember what happened to Apple in the desktop space? Here’s a hint, it wasn’t pretty. Sure, the Apple Mac revolutionized the world of computing with the first mouse and awesome graphical user interface. But guess what? Now you can buy a desktop at 300 bucks a pop and get all that and more. Why pay an extra few hundred dollars just to get that Apple logo?
This is precisely what is going to happen with the tablet and there’s really nothing Apple can do about it. Why? The Android operating system is free. Of course, a lot of its critics would say that it isn’t really free because the end user ends up paying and somebody has to pay down the line.
Regardless, from a purely practical perspective, by reducing the costs of hardware manufacturers in installing a very powerful mobile operating system, Goggle’s is effectively stealing Apple’s lunch and there’s nothing Apple could do about it except cry. Need an example? Just take a look at the Samsung’s Galaxy Tab 3 Lite. This is shaping up to be Samsung’s first entry in the sub-100 dollar market. If Samsung does price this device at under 100 dollars or just above 100 dollars, we’re looking at a massive sea of change in the tablet market. Just like with any other new device category, manufacturers would tend to release product at fairly high prices but, eventually, the competition gets to them and they start slashing.
If this unit sells well enough, it might just be the hint Samsung needs to start dominating the sub-100 dollar market. If it decides to do that, it runs the risk, of course, of shaving profit margins down to dangerous levels. Moreover, it will be playing in the territory of cheaper Chinese manufacturers. Whatever happens though, there is one winner in all of this: Y-O-U.