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Adrian Kingsley-Hughes

Are Android tablets that cost more than $199 doomed?

By | January 7, 2012, 2:23am PST

Summary: No … but …

Apple set the stage for the tablet revolution with the iPad, but it was Amazon with the Kindle Fire that made the biggest hit in terms of price - by setting the price bar at $199. With CES just around the corner we’re likely to see a whole raft of tablets released. But how will they be priced?

CES 2012: See CNET’s news and product coverage

Price was the main reason that Android tablets have, so far, been a failure. While there are undoubtedly other issues (Jason Hiner over on TechRepublic covers the major ones in his postmortem on why Android tablets failed) there’s little doubt in my mind that the primary cause of death was price. After all, who was going to put down $500+ or even $800+ for an Android tablet if they could get an iPad for $499? People see the price way before they notice that a 16×9 aspect ratio isn’t ideal, or that there are a lack of tablet apps.

Price stands out above all.

So what effect with the Kindle Fire with it’s $199 price tag have on Android tablets that we’re going to see unveiled at CES?

Here are some of my predictions:

  • Ultrabooks is where it’s going to be at in 2012.
  • Tablets are a gamble for any maker because they’re choosing to go head-to-head with Apple. My guess is that makers are going to play it conservatively in 2012 (there’s a lot of money to be lost in tablets, as companies like RIM have discovered).
  • $199 is without a doubt the price point for 7-inch consumer tablets. 9/9.7-inch tablets have more wriggle room, maybe up to the price of the iPad (but they must have some tangible unique selling point to differentiate them from the iPad).
  • Enterprise tablets have even more wriggle room in terms of price. Not a lot (again, RIM’s PlayBook is a cautionary tale).
  • There’s no room for a $600+ tablet. If you see this as the entry level price, it’s doomed.
  • Don’t get too excited about stuff announced at CES … things announced are subject to change and there’s many a slip ‘twixt the cup and the lip possible.

So, are tablets that cost more than $199 doomed? No. It has to be remembered that the Kindle Fire is a 7-inch tablet, and as such a different animal to the 9/10-inch tablets. The ceiling here is the price set by the iPad - $499. However, a tablet going up against the iPad at $499 better have some special sauce if it wants to have a chance of surviving.

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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RE: Are Android tablets that cost more than $199 doomed?
bhartman36 12th Jan
@radleym@...

If you're saying an iPad isn't a tablet, then by your definition, tablets don't exist yet. And you seem to be changing your definition of a tablet from a device that has a GPS, expandable storage, or voice input to a general purpose device that has an "open system" (whatever you define that to be).

I get that you don't like the Kindle Fire, but you can't just make up definitions of "tablet" on the fly to try to prove that a Kindle Fire isn't one.
You are trying to spread **** about Android still growing as it creaks

Wp7 is doomed
@Sultansulan I believe Adrian is right on. Mywife and own both a 7" Fire ($199) and 8" Vizio VTAB100b ($190). Both do exactly what we purchased them for which is downloading and reading library books. They also are useful for game playing and a few other apps. THEY DO NOT REPLACE MY DESKTOP OR LAPTOP. That is nonsense to even think that. $200 was my pain threshold and Vizio/Costco hit a grandslam with their product. Vizio has just announced a 10" who, if they can keep below $250 will own the tablet market, including the fruit section.
@marvin@... Do they have GPS? Voice input? Full access to Google market? Expandable storage? Access to USB peripherals?

You've bought an Amazon book reader/movie watcher.
That's not a tablet in my book.
@marvin@...
I agreed with you about the Vizio. First, what Adrian said abut the 16:9 ratio is right, it is not ideal, 4:3 is, like the Ipad and the 8" Vizio. All others Android tablets have opted for the 16:9 ratio even though they see Apple kicking their butts with the 4:3. 16:9 is very awkward in a tablet. I should know, I bought a Samsung Galaxy Tab 8.9", and even though I am liking it, I would have prefered a 4:3 format instead of the Samsung 16:9. To me the right size for a tablet is between 8 and 8.9 and with 4:3 format. Large enough to read full news articles, email, etc., and small enough to carry in my cargo pants.
Vizio have failed to advertized their tablet and that is why they haven't sold as many as they could have had. Besides on their website the price is around $350, but Walmart sells them for $199. Why do that if they really wanted to capture some good market share? Even Walmart was out of Vizios for the Holidays. Vizio did not plan for the tablet to be a success. Too bad, because it is a nice piece of hardware and software for the Walmart price of $199. Amazon on the other hand did heavy advertising for the Fire, with the help of the tech press. Amazing that they gave the Vizio worse reviews than the Fire, when the 8" Vizio is a true tablet, has access to the market and has a beautiful screen that the Fire cannot match. The complaints about the Vizio were so silly as to be laughable. Like the interface, doesn't everyone in the Android world put their own interface on everything, and the Vizio format is one of the more elegant I have seen. My son has thrown everything that he can get on his 8" Vizio that matches his mother iPad2, and everything runs fine on the little 8" tablet. Of course, even this late in the tablet game, there are some great apps that you cannot get for Android that are in the Apple app store. Take for example, and if you have not seen them, don't comment on this just being a fanboi, two magazine style news reader. Zite and AOL Editions. These apps are the cream of the crop for reading and keeping up with the world, but they do not come in Android flavor. I wish that will change soon, because I am loving the size (not perfect, 16:9 form factor), the amazing clarity, and resolution of my 8.9" Galaxy Tab. It has the same resolution as the GT 10.1 in the smaller 8.9 package so the screen is even brighter and I know it is just a piece of hardware, but really, it is plain gorgeous! I also like the wife's iPad2, but my GT is so much brighter and clearer that there is no comparison. And it is the thinner tablet out there, weighing at .9 pounds. It runs Honeycomb 3.1, and if you haven't run Honeycomb, you cannot appreciate the difference between the 2.xx and the 3.xx. And Samsung says that they will upgrade all of them, except the original 7" GT to 4.0.
I ended up with an original 7" Galaxy Tab. It has a great screen, it is not bad, but Samsung has orphaned this tablet and has never been upgraded from android 2.2. Also, the 7" form factor is just plain too small, easy to carry but you will find yourself wanting a little more screen space. Fine for reading books, but that is about it.

If Vizio would spend a little money advertising the 8" tablet and drop the price fo everyone to $200, they will have a winner.
For all the tablet manufacturers they better pray that Apple does not come out with a smaller iPad, say 8.5", because if they do, Apple will price it right and since nobody really is understanding the size factor, it is either 7" or 10.1, Apple will have both the large size and the small size market again for themselves and the androids will rush to put out products to match, but as everyone knows, you cannot beat Apple at their own game.

PS: For all, this is just my opinion and there is no need to shout or get angry abut somebody's opinion even if it disagrees with your own. So keep it civil!
@e_ecruz. The 4:3 form factor is dead. 16:9 is ubiquitous now in terms of monitors. The tablet is first and foremost a monitor. Based on your thinking, iMacs should be 4:3 too. That's ridiculous. The Touchpad failed so the 4:3 form factor is not why the iPad is popular.

The 4:3 form factor is much less convenient than 16:9 both in landscape and portrait. With 4:3 you can't thumb type in either orientation. With 16:9, thumb typing in portrait is almost perfect. Also, in portrait mode, it's perfect for web browsing because you can see more of the page. In landscape, it's perfect for videos and games. In 4:3 you have these huge black bands at the top and bottom when watching video so the overall size of the actual video is much smaller than on 16:9.
@marvin@... What you're describing is what I would call a dumb tablet. Kind of like the difference between a traditional dumb phone and a smart phone. Tablets will replace laptops. It's just a matter of time. I just got my Transformer Prime with keyboard dock and it's fantastic. It's worth the $650. Best tablet I've used to date and though it doesn't completely replace my laptop yet I can see how in the not to distant future, it will. The keyboard dock station that has extra ports and battery is a game changer. Other tablets will follow suit.
The Nook Simple Touch is now free with a subscription to the NYT

But you won't see anything at ZDNet about it until several days after, or ever. Perhaps 1 blog by Ricardo or Gloria.

If it were Amazon the one giving away the Kindle, automatically at least Perlow, Adrian, Dignan would be blogging about it. The first would tell us "I told you so", the second would tell us "it's doomed, buy a US$500+ iPad instead", and the third would be posting a financial chart of Amazon and making predictions.

ZDNet has become too hostile or indifferent to anything except Apple and sometimes Amazon
@radleym@...

What makes you think that *only* those tings constitute "real" tablets? Why are accessories like GPS and expandable storage suddenly inherent to what a tablet is? Incidentally, is the iPad a tablet? Last I checked, it didn't have expandable storage or USB peripheral support.
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@bhartman36... Computers are general purpose computing devices. Kindle Fire (yes, and iPOD) are devices used to access closed consumer ecosystems.
(Response to below) OK, fair enuf - I am simply trying to distinguish netween devices designed to consume content from a single provider, and devices with which one may do as one pleases. The Fire is a pure Amazon consumption and shopping device at this point.
And I have been using linux and windows on tablet computers for at least 5 years. Are you saying ONLY Apple makes tablets?
@radleym@...

If you're saying an iPad isn't a tablet, then by your definition, tablets don't exist yet. And you seem to be changing your definition of a tablet from a device that has a GPS, expandable storage, or voice input to a general purpose device that has an "open system" (whatever you define that to be).

I get that you don't like the Kindle Fire, but you can't just make up definitions of "tablet" on the fly to try to prove that a Kindle Fire isn't one.
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@Sultansulan Is there a WP7 based tablet? If so who makes it, what are the specs, where can i get my grubby mitts on one? If not then why bring up WP7?
@Pete "athynz" Athens He brought it up because had nothing to add... yes if anyone has any news about a tablet with WP7 then let us know. The more player in the arena the better. I wish that hardware manufacturers would just make the darn hardware an let it run whatever OS software makers can come up with from low priced WP7 to any free linux-based distro flavors. Then perhaps the fruity branded product could see some competition as the free platforms catch on and the iWorld remains closed in its Orwellian ecosystem.
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Even at $199 if it's not a Fire, it won't sell, unless it is actually from Google. Even then they have to offer a compelling reason to buy it over the Fire.
@john@... See my post above.
ZDNET has to start making a distinction between glorified ebook readers and real tablet computers. Their contention that consumers are too stupid to tell the difference is nonsense - if it was true, nobody would have bought a notebook after netbooks came out.
They also have to stop pretending that the opinions of their editors constitute facts (remember how nobody would possibly want to buy a 7" - until the kindle fire. Also the red-herring re. aspect ratio - they are just making this stuff up).
I've tried very hard to rationalize these continual anti-android articles as fact-based, but it is clear that no android tablet will satisfy these guys unless it looks like and acts exactly like an iPOD. Reminds me of the anti-linux zealots who claim linux will never take off until it looks and acts exactly like windows.

Remember, these are opinion pieces, not reportage of fact.
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Why bother?
Robert Hahn 7th Jan
There will be plenty of mid-priced Android tablets from companies who think that selling 250,000 units/year is fun. But I doubt we'll see many more of those from The Big Guys, to whom 250,000 units is noise.
@Robert Hahn Cheap, crappy tablets have been available for a while, and they've all failed to sell. They'll continue to do so.
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I agree
toddybottom 7th Jan
@matthew_maurice
There is no competition to the iPad. It is a sick market. We all lose.
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Low volume != cheap crap
Robert Hahn 7th Jan
Do you have some evidence for the idea that small companies to whom $100 million in annual sales sounds like a big deal are capable of producing only cheap crap? I don't know why that would be true.
Because Apple is able to buy in such huge quantities, quantities no one else can or ever will be able to buy, they are able to get their parts for much less than anyone else can. If a small company tried to build a tablet approaching the quality of Apple, it would cost them $500 per unit. Or, as we've seen, they can put in resistive screens and cut other corners to produce the crappy tablets we've seen up until now.

matthew is absolutely right. No one can compete with Apple and never will be able to compete with Apple. Apple has a stranglehold on this market.

It is a sick market. We all lose.
@toddybottom

Are you really trying to claim that Apple can buy Samsung parts for less than samsung can produce them for itself.

Good grief.
@Robert Hahn Cheap, crappy tablets have been available for a while, and they've all failed to sell. They'll continue to do so.
@matthew_maurice ... yep, even though some are useful - I've got a huawei s7 which acts as my 3g wifi hotspot and media player when away from the house. I'd pay $300 for a 7 - 8 inch 3g android tablet with a decent cpu and screen. I'm glad they won the legal battle but the prices Samsung are quoting are hilarious ... I'll stick with my netbook and wait for a good value ultrabook I think.
@Robert Hahn

Past "Kings of the Supply Chain"

Sony - TVs
Sony - Walkman(anyone remember those?)
Motorola(Mobility) - Cell phones
HP - PCs
Projected to be overtaken by Acer this year, and market cap is so low,
Google, @ 1/5 the revenue, could buy controlling stake from cash reserves.

Supply chain != win
Not at all, you will see more partnerships and copying of Amazon's successful strategy.

People want what prime offers... they want free book rentals, access to thousands of streaming videos and Tv shows for free and free cloud based storage that is unlimited for what the vendor sells to you.

A google tablet matching the fire's success would work because it is much more flexible than the Fire ever will be.
@Peter Perry Goggle can't do that. While Google has extensive sales experience, it's only ad sales that they're good at. All their attempts to sell anything else have failed miserably.
@matthew_maurice I hear they have a moderately popular phone OS that's making good money.
So far, Android is making a little bit of money and carries substantial liability.
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Google sells an OS? That's news to me.
matthew_maurice 8th Jan
@symbolset Last time I checked they give it away, and if I'm not mistaken the company that's doing the best with that OS on a tablet is using a deprecated version that's so highly modified it's barely even Android anymore.

My original point stands, Google isn't very good at selling anything except ads.
@symbolset - it's making good money on Ads and it's hooks into the OS via their delivered app set. They are not selling the OS and they are not selling tablets and phones with the OS that was Mattew's point. The carriers are brunting the cost of enhancements, and product delivery.
@matthew_maurice
Correct. Google won't even 'fess up to how much revenue they receive solely through Android. Google makes a couple billion though mobile ad sales but at least half of those revenues are non-Android mobile revenues through iOS and other OSes.

Google is very good at selling your eyeballs to advertisers.
@matthew_maurice

Except that Android dominates the smartphone market right now. It's the one other thing they've managed to sell, via partners. So, they need to figure out how to duplicate that success with tablets. Easier to take a well engineered product and figure out how to sell it than take a sales force and figure out how to engineer them a product to sell... except for finance, stupid CDOs. Who thought that was a good idea?
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It's free except for the $79
Robert Hahn 7th Jan
Of course people want everything for free. But Amazon Prime is not free. It costs $79/year. Netflix is only slightly more expensive, and has a lot more movies that people would actually want to watch.
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Amazon Prime is not free.
Bruizer 8th Jan
@Peter Perry

It is that simple.
@Peter Perry Where do I go to get all this "free" content?

@toddybottom - really, recycled posts that have appeared over and over and are patently false. Do you ever actually think about what you write?
Its not the market that's sick - its toddybum.
@Peter Perry

Amazon wins because they DON'T rely on Kindles. I have Prime and can rent from the same pool of books AND movies/TV shows on my Xoom. The $199 Kindle is entry level, $15k Civic. $500 for Kal-El is a $90k Tesla. The $650 iPad is a $125k SL550, beautiful, but a premium for less performance, efficiency, and oh yeah, it's larger.
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Not, entirely. Once Amazon introduces a 9/10-inch form factor tablet running Android, they will pretty much own the space between the Fire and the iPad too.

The Android enthusiasts and geeks aren't numerous enough to provide a market for the OHA tablet manufacturers. They will install after-market versions of Android such as CyanogenMod.

Google itself, assuming that the Motorola Mobility acquisition is consummated, might be able to compete directly with Amazon. However, Google will need content offerings to rival Amazon. One step in this direction would be for Google to acquire Barnes & Noble. This would give Google Books a huge shot-in-the-arm. The B & N Nook brand, both well-known and -regarded, could be rolled into Motorola Mobility. And Google gets B & N retail stores to provide sorely-needed face time with their customers.
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@Rabid Howler Monkey Content providers are very wary about working with Google (e.g. how many online media portals block GoogleTV?). They've seen the way Apple came in looking like a white knight to save them from online piracy (which they were), but then Apple took a stranglehold over the only viable online, and hence only viable retail, sales channel. So when it comes to Google they're not even going to play, and they shouldn't because regardless of the revenue split Google would always get the really valuable part, all the user data. It's been made totally clear, Google doesn't share "the algorithm" with anyone, and they shouldn't, that's the crown jewel of the company. Give that away and it's game over.
@matthew_maurice

No, Hollywood is going to die. They're killing themselves. Yes, they're strangling GoogleTV and going to great lengths to keep Hulu inaccessible to Android users. They keep engaging is scorched earth policies. They are spending money on projects that by definition exclude markets and CANNOT generate any revenue AT ALL. Hollywood's heavy-handed policies hurt everyone, including consumers, and Apple isn't getting anywhere with it. They've had Apple TV for 5 years today(Happy Birthday) and have gotten exactly as far as Google in 2.
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I don't think so...
rlorenz 7th Jan
I just got one, actually. I haven't had any trouble so far, and in reality I don't find myself yearning for apps that aren't there. Like what has been discussed many times before on this site, tablets are largely content consumption devices, which means most of it happens online--something the tablet does fine natively. I'm hopeful for some modest performance and battery life upgrades in ICS, but the few apps I do use seem to work just fine on the tablet (even if they aren't officially for the Honeycomb platform). The only thing I had trouble with was The Economist's app, which says it isn't compatible with Honeycomb at the moment. It took me about thirty seconds to pull it from my phone and install it on my tablet, and it works fine, and looks right to boot.

Comparing the 4:3 and 16:9 aspect ratios, I feel like my Android device feels futuristic, kind of like one column in a newspaper where I can read an entire article. I don't mind it... I considered both and ended up with the 16:9.

I think you're blowing it out of proportion, Adrian. Maybe to those in the tech world, where reporting on something leads to more reporting which leads to rereporting by the original source (especially articles titled "The death of ____") it may seem like Android tablets are dead. I'm not sold at the moment. Android tablets are new in their lifecycle, and without the "magic" of Apple, they are bound to face growing pains.
@rlorenz Exactly - zdnet bloggs feed off each other - and opinion in one blogg somehow gets stated as fact in others.
zdnet navel gazing only informs zdnet about navels, not tech.
"they must have some tangible unique selling point to differentiate them from the iPad" :: I dont want to become part of a locked APPLE ecosystem. No Apple products for me, period.
@Peg Ajoso You are missing out. But hey, knee-jerk justifications for not purchasing something is fine.

Here's the thing. With the iPad, everything I have put on it stays on it, and if I delete an App I can always re-download it, if needed. Got a Kindle Fire when they hit the stores and went through several (maybe seven) updates of OS software, that would happen at night, un-asked for, de-registering the device and deleting any side-loaded books. Sent it back, got the 79 Kindle which is an excellent device. But the Fire, even with the latest update, is just too unreliable a device for the money.
@john@... Everything I put on my Asus Transformer has stayed on it and there have been many updates to both software and firmware. Can't say what will happen if ICS becomes available for it though. Will see.
@john@... So you think that the hacked-up kindle OS is typical of android?
OK - you're missing out because of your knee-jerk reactions, but that's OK - you are the type that Apple loves, apparently unable to make your own shopping decisions.
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Garlic & Onions
Robert Hahn 7th Jan
@Peg Ajoso
If I pressed 2 for Spanish, I'd find out that you're a linux advocate. So why should we expect you to say anything else?
@Peg Ajoso Agree with you 100%, no apple crap for me.
@Peg Ajoso

For that matter, how is more cores, more RAM, better performance, and 50% higher resolution intangible? If you can't see the difference between an image on an iPad and the same one on a Xoom, go see your optometrist.
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if you're android you have top beat apple with something. apple own the segment. If you want to beat them, you have to do it with something other than the linux fanboys' perceived belief that android os is a drawing point. The general public does not know what android is. They DO know what apple is.
@sackbut Well, it's worked in the phone space, where I think customers DO know what Android is. Apple owned the smartphone segment at one time too.
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@jgm@... the real fact is that customers get what ever is the cheapest crap (or acceptably good at a very low price) and most don't really care about the OS. It is all about the cheap cost.

That fact is more than proven .... just look at all numbers Android has and how the platform is barely making any money for anyone (OEMs or developers).

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