September 19, 2011

Brian Caulfield: Tablet Price War Is Coming

Brian Caulfield: Tablet Price War is Coming.
BlackBerry can’t afford to exit the tablet business - as rival Hewlett-Packard did - because its QNX operating system running the PlayBook is the company’s future.
RIM is in a tough spot. 
Canadian cable company Rogers is selling the PlayBook, which normally starts at about $511, Canadian, to employees for $249 and up, according to Boy Genius Report. That hints price cuts for the rest of us are coming.
As HP’s $99 sale for TouchPad has proven, there is a market for a low-cost tablet that can access the Internet. 
So who can afford to make the least amount of money for the longest here? Maybe Amazon. Analysts are guessing its forthcoming tablet will cost $250, a price that probably can’t be matched without accepting single-digit margins.
Are Tablet price wars coming or is it just BlackBerry PlayBook and Amazon Tablet competing with themselves? Their low prices are unlikely to affect the iPad, which has managed to place itself in a completely different category.

Amazon has wisely avoided a head-on confrontation with iPad by positioning Amazon Tablet as a better Kindle.

Apple is not ceding any ground anywhere. They are even advertising (screenshot above) for the term – tablet price war is coming – on Google with a message: iPad is more than a Tablet. Apple is the only one who is advertising and even calling out e-readers such as Amazon Kindle (Tablet).