Consumer big winner in tablet price war

Google Nexus 7Budget tablet, those tablets priced below $250, have always means cheap, underpowered, no features tablet. You get what you pay for. However, with the introduction of Google Nexus 7 and iPad Mini, budget tablet are becoming more powerful and packed with features. Android based tablet are becoming more and more common.

With that said, it is easy to imagine how cheaper 7-inch tablets could dominate the market by the end of this year. In fact, I predict that they will represent 65 percent of all tablets sold in the United States by the end of 2013. While I see Apple’s iPad mini as a major player in this smaller tablet arena, Android is the OS of choice in the low-end of the tablet space.

Source: PC Magazine

The margins for companies that makes tablets are razor thin. With the diverse range and lots of new companies joining in the tablet market, makes it a crowded market. They are not the big winner in the price war, the consumer are.

Since Google introduction of the Nexus 7 and Nexus 10, we are seeing steep decline in price for all tablets. Especially in the non-branded tablets. For the first time, we are seeing 10-inch tablet in the $250 range.

But, with the decline in price, also comes an increase in quality and power of the tablet. Big brands are now moving into the budget tablet market with excellent offering. The budget tablet market is no longer owned by non-branded, chinese build tablets, well known for their lack of quality.

Although this race to the bottom in low-cost tablets will not deliver any major profits for those making these cheap tablets, this is really good news for consumers. It also suggests that we are about to launch the “tablet-in-every-room” phase of the tablet market — one that could have the profound effect of speeding up the integration of all things digital into our lifestyles.

Source: Techland

In the end, the winner is the consumer, the end user. The consumer get good quality tablets at an afforable price.