Android/Other tablets cutting their price because of the iPad? Not 100% sure...

Discussion in 'Off-Topic' started by DrHouse, Aug 16, 2011.

  1. DrHouse
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    DrHouse iPad Junkie

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    I don't know if you followed the news lately, but it has been reported that most Android/Other based tablet manufacturers are cutting their prices to help their sales. Almost every time, it would be the result of the iPad success or that they are not able to compete on the user experience level with iOS...

    I have doubts about that! For sure, the iPad has set the bar and is a fierce adversary, but let's consider that an Android user is face with more choices than an Apple user... The market share competition is not only with the iPad, but with other tablet manufacturers also...

    Think about it, a guy walks into a store and wants to buy a tablet. On one side, the iPad and on the other side, the other tablets (HP, Samsung, Acer, RIM...). That guy just don't want to go with Apple as he is a Windows user... So he is now faced with 5 or 6 products to choose from...

    - Price will be considered
    - Features and specs will be compared
    - Capacity, mobility and maybe obscure personal taste will be considered

    But overall, those other tablets are almost the same on the features/capacity level (maybe not the Playbook ;) ). Price will eventually be the main reason for his choice on a manufacturer. The lowest priced tablet will be picked up (for the same features/capacity).

    With that selection available, each manufacturer has to compete with the others, splitting the market share. Having to compete with a product that is essentially the same, they are left with their brand name and prices as their main arguments. This actually results in less sales for each of them, less profits, higher cost of production and less capacity to do reseach and development to put on the market a better, greater, slicker product to beat the infamous iPad...

    How ever good their product will be, they will first have to struggle with each other, then with Apple...

    VicoPad addict!
  2. Destroyer
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    Destroyer iPad Fan

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    most likely..at this point when you say TAB people asociate it with the ipad.

    Sent from my iPad using iPF
  3. sjleworthy
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    sjleworthy Super Moderator Staff Member

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    yes. a logical post. Apple have indeed dug themselves into an enviable position within the tablet market. (um, actually, what tablet market???)


    rubbish.

    i'm a dedicated Windows user of over 20 years (still use Windows on a day to day bases as i hate the mac os), but, i love the mobile Apple ios. it's a joy to behold.
    your logic that being a Windows user will automatically disregards Apple is stupid. thats a complete incorrect assumption. i certainly dont.
    i find peeps with this attitude most childish and immature. (not aimed at you personally mate, just the general apple v's the rest war people). Apple lovers and Apple haters equally p155 me off :) (infact, everyone p1s5es me off :p )

    My decision to purchase Apple devices over the (windows/android) based competition is because i purely love what apple gives me. i made a personal and educated choice. i didnt care about specs (Apple's specs are always good, and they dont even tout specs in their marketing). i care about looks, userbility and options of apps to download.

    the competition cant compete on the same planet as apple in any of these respects. and this is a proven fact.



    yeah. no matter what, i think most people are dictated to by their wallet. and again, Apple are here where they need to be. It's difficult to see where their competition will come, both commercially and technically, in the next few years (and beyond) at least.
    Last edited: Aug 16, 2011
  4. DrHouse
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    DrHouse iPad Junkie

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    What? It is just an example of a John Doe not wanting to go the Apple way... I could have said a Linux user, but they are harder to find ;).

    Anyway, the point is not about the user, but about market shares...

    VicoPad addict!
  5. sjleworthy
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    sjleworthy Super Moderator Staff Member

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    yeah. not having a personal dig i assure you :) i certainly get your point.
    Funny how it's a zillion times more common for a Windows user to become an Apple convert than the other way around. and yup, best not mention the 'L' crowd ;)

    who's John Doe?
  6. Rob.Skully
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    Rob.Skully iPF Novice

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    I agree with Sjleworthly !
    I too am a Windows user right from the beginning when Windows was 1st released.
    I was also looking at the other tablets & even a netbook or small laptop before
    Finally deciding on my I-Pad 2 and I am so addicted to it my Wife threatens
    to hide it when I am getting ready to go somewhere because I end up leaving late.
    Rob .....
  7. DrHouse
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    DrHouse iPad Junkie

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    John Doe is a no name, unkown identity... It actually does not matter...

    VicoPad addict!
  8. DrHouse
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    DrHouse iPad Junkie

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    And Monk wants everything to be even... It just does not matter... It's just a guy, so dedicated to Windows and Microsoft that he won't consider an Apple product because of that... A fanboy, a zealot if you prefer.

    Anyway, that guy just went with the other manufaturers, end of story...

    VicoPad addict!
  9. jsh1120
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    jsh1120 iPad Addict

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    Here's another perspective. I have five computers in this household; three of my own, one for my wife, and another for my daughter. All Windows systems. In addition I have two Android smartphones for my wife and myself. Then there are the external drives, cloud based storage, printers, routers, etc.

    In short, my household more closely resembles a small business that grew like Topsy than a typical household. The network and system administration burdens are not insignificant. (And yes, I could replace everything in the household with Apple products or I could make a large down payment on a Porsche.)

    When the time came to purchase a tablet I could have opted for an Android product. Or I could have waited for a Windows tablet. Why didn't I?

    Simple. I already have to make sure that my various Windows systems are maintained in working order. Do I want to add still another Windows system to the five I already have to keep maintained? I value the "customizability" of the Android phones but I really have no interest in keeping still another Android device up to date and operating optimally. What I needed in a tablet was a system that required close to zero maintenance and administration.

    It was somewhat counter-intuitive to add still another OS to the mix. But in fact the iPad requires almost no attention other than to occasionally sync it with iTunes. There are major problems in sharing content between the iPad and the other systems but I don't really need to do that more than occasionally. And there are ways to do so when I really need that capability. In short, I've found that the addition of an iPad to the mix to be simple. Less of a burden, in fact, than adding another device to the Windows and Android systems I already maintain.

    Maintenance ease wasn't the only reason I chose an iPad. The mountain of apps available for kids (my daughter is seven) was a critical factor, as well. In fact, it was the deciding factor. But as I look back I realize that choosing an Android or Windows tablet would have increased the burden of system management more than the iPad has.
  10. DrHouse
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    DrHouse iPad Junkie

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    And you point is? The arguments are not about choosing and iPad over and Android device, but about the struggle of Android manufacturers between them to gain market shares... Please stay in the thread subject.

    VicoPad addict!
  11. Mountainbikermark
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    Mountainbikermark iPad Addict

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    I totally get your point. Its not about apples vs limes, it's about limes stores(manufacturer) vs limes stores(manufacturer) with apples stores(manufacturer) on the outside.
    With the struggling economy in the US and elsewhere looking like the struggle is getting harder while more of the strugglers are starting to buy fruit, the apple could eventually get dragged into the lime war, at least in the US if nowhere else, once the competition between limes gets to a certain price vs benefits level out of sheer economics due to trickle down technology causing prices to drop while profits remain the same . Here in the US if we have a choice between a free phone vs a paid phone while signing a contract for both is a requirement the chances of a free phone being the purchase, then griping for the entire contract time about it sucks are a large possibility. That day is soon in the American tablet world as well. We want our technology and we want it as cheap as possible. When you compare a $600 apple against a $600 lime the apple will win more times than not . When you compare a $600 apple against a $200 lime that will do the same basic things (surf the net, check email, play Angry Birds, etc) at about the same level is a different story. The purchaser of the $200 lime may complain forever that it sucks but will probably buy another $200 lime of a different brand from a different store to replace it.
    The average fruit consumer has no clue which fruit is better other than which looks shinier on the shelf or what their friends/coworkers tell them is shiniest. The average consumer will buy based on price and in order to sell more limes the lime sellers are cutting prices, not to cut sales of apples but to sell more limes in their store, which could have the trickle down effect of cutting some apple store sales .
    Which fruit is better is not the topic.

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    Last edited: Aug 16, 2011
  12. SweetPoison
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    SweetPoison iPad Legend

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    I agree. And let's all continue to have a respectful discussion.;)
  13. DrHouse
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    DrHouse iPad Junkie

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    Price will be a major factor in the future, but still manufacturers will struggle with each other for market shares. With the tablet market (iPad market?), the rules have changed. You cannot put your device in consumers hands relying on a contract, a service or any other form of indirect sales. So they have to rely on features and prices to get their quota...

    A stated in another post, in a 80% Android market share, leaving 20% to Apple, this would mean that Samsung, Acer, Asus and Motorola would have to split the 80% between them. And you have to consider the other manufactuers creating Android tablets... So basically, 80% / 5 = 16 % for the each major player and for all the others... Apple would still be first, or likely second in the maket share based on manufacturers...

    VicoPad addict!
  14. Mountainbikermark
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    Mountainbikermark iPad Addict

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    I agree totally.
    In 2004 the crank arms on my then new bike were new , cutting edge technology that cost about $400 to replace with the company making about $20 net profit. By 2007 when I replaced them those same crank arms cost about $80 with the company making about $25 net because the manufacture of the technology had become so much cheaper per unit made. Other manufacturers of crank arms didn't pursue market share so much as quality of product and name brand recognition, thus their prices remained higher and their profits remained about the same while the crank arms I bought were actually lighter, stiffer and stronger at a much lower price, so much so that they are actually lasting longer though I'm heavier and put more stress on them.
    I see the same thing in the tablet world

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  15. accessoriesguy
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    accessoriesguy iPF Novice

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    Even some non-apple fans have told me that no other tablet can compare in price. Since apple had long invested in flash memory, batteries, iOS and other technologies. To make things better for themselves they already released an iPad1, so the second one can use some of the parts, and also mass produced items, lowering costs further.

    It is impractical, no other device can match it price wise/(somewhat) feature wise.
  16. Seadog
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    Seadog Super Moderator Staff Member

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    The problem other manufacturers have is that they cannot compete. They are doing the best they can, but to start with, their operating systems are fractured. You have several versions of Android, WebOS, and more coming. Several manufacturers will be second guessing using Android for concerns about taking a back seat to Motorola. Then add the problem of trying to dent Apple's market share. Apple is associated with the tablet market and has the top reputation for style and performance. The average user wants exactly what Apple is producing.

    Even if the other manufacturers catch up, it will be hard for them to compete on price. With 80+% of market share, their patent portfolio, and their cash reserves, Apple has the bargaining power to get the top components at very low prices. Enough so, that they can make huge profits at prices where the compettion is losing money. Anyone that has worked on cars, knows that when you suffer an accident or breakdown, It does not take much for the sum of the repair parts to be more than the value of the vehicle. Every car shares as many parts as possible, not only among other vehicles by the same manufacturer, but among different manufacturers. That is because it can cost as much for 1000 units as 1,000,000 units. With any product you have three cost factors. Fixed costs which are there for any amount of product. You take the cost of your capital expenses and divide by number of units. The more units, the lower the price. Then you have material cost which will be the same for every unit. Then you have labor/equipment costs which are both types of expenses.

    An example of that is looking at a small plant system. You have a manager, secretary, and foreman. If one employee produces 250 units per month, and you have an order for 1000, you need 4 trained employees. With 5000 units ordered, you can managed with 20 employees. However, at some point you have to overstaff your employees to cover time off for vacations and sick leave. So for every 10 employees, you have to hire a spare. However, all these can be managed with one manager, secretary and foreman. After 22 employees, you may need to go to a second foreman. Eventually you may need to hire more secretaries, etc. So production efficiency will be a series of ups and downs according to demand. The equipment needed to produce the equipment will also be a variable. The more production, the more equipment to produce them. Eventually, a new factory may be needed, adding more capital expense. And it takes years to build a new factory, so what happens in the meantime? Will there be a market when the new factory is completed? The public wants now, not when available.
  17. Mountainbikermark
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    Mountainbikermark iPad Addict

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    The fracturing has been addressed and a firmware update that will be released approximately October if this year and will bring all things Android under 1 version of Android.

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  18. Seadog
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    Seadog Super Moderator Staff Member

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    Even so, the OS is going to take awhile to catch up to the level of iOS. And it is not just bringing Android under a single OS, but dealing with the multitude of competing OSs. The purchase of Motorola is going to have a big impact on how Google does business, whether they believe that or not. It will also greatly impact how they interact with the wireless carriers.
  19. DrHouse
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    DrHouse iPad Junkie

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    Even if Android was on par with IOS in terms of quality, the consumer has a multiple choices between several manufacturers. In my opinion, that's the biggest hurdle for Android based tablet manufacturers. When trying to decide between a Xoom, a Galaxy or an Iconia, the customer will try to compare features and prices. Since they have almost the same features, price will be a major factor in his decision...

    No Android tablet currently has a killing feature or a must have app... They are all the same, beside some hardware capacities... They are just like a PC, just with different looks...

    My bet bet for now would be the Galaxy Tab, but it's been a while since I lurked at what's available in a retail store.

    VicoPad addict!
  20. Mountainbikermark
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    Mountainbikermark iPad Addict

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    That is the best summation of the point of this thread so far and what is causing the price cutting .
    The next Android update will make that even more so.
    It has nothing to do with Android vs Apple like Dell vs Gateway has nothing to do with Mac.



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    Last edited: Aug 16, 2011

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