Tech Broiler

Jason Perlow and Scott Raymond

Will Vizio escalate the Android Tablet price wars?

By | July 18, 2011, 12:09pm PDT

Summary: At $349, Vizio’s 8″ Tablet with Wi-Fi could take Android Tablet prices to new, stomach-churning levels for the top tablet OEMs.

At $349, Vizio’s 8″ Tablet with Wi-Fi could take Android Tablet prices to new, stomach-churning levels for the top tablet OEMs.

If you’ve been paying attention to the Android Tablet space, you’ve probably noticed there’s been something of a price war going on lately.

Recently, two major tablet manufacturers, Acer and Motorola, have adjusted their tablet street pricing in response to pricing pressure from competing manufacturers which have introduced similar devices, such as Asus and Toshiba.

Acer’s Wi-Fi 16GB Iconia A500, which recently received an Android 3.1 update, is now streeting at $399 or less and in my opinion is still a very good tablet buy.

The Wi-Fi 32GB Motorola XOOM, the very first Android Honeycomb tablet out of the gate and which is still considered to be Google’s “reference” device, recently received an upgrade to Android 3.2 and has been reduced to $499, no doubt in response to the release of the thinner $499 16GB Samsung Galaxy Tab 10.1.

So will the price wars escalate further? I suspect they will, and even sooner than the OEMs think.

Vizio, which caused a great deal of disruption in the HDTV space a few years back by introducing value-priced but high-quality 1080p home entertainment displays appears to be doing the same thing with Android tablets.

We’ve now learned that their 4×3 aspect ratio, 8″ VTAB1008 (Formally known as the “Vizio 8-inch Tablet with Wi-Fi”) is going to hit the streets next month for $349.00.

Now, the Vizio 8″ Tablet’s general design and specifications have been known for quite a while, as it was shown at CES 2011 way back in January. But we’ve learned a few new things about it that other publications may not have yet revealed.

For starters, the screen resolution is 1024×768, which is identical to to the currently and previously shipping Apple iPad. It also has an aspect ratio identical to the iPad, even though the screen real estate is slightly smaller, at 8″ versus 9.7″.

So Vizio is of the same mind as HP (with its TouchPad) that consumers want something that looks a lot like an iPad.

Secondly, it has a lot less power-hungry hardware in it than most Android tablets, and more resembles the original iPad in terms of overall capability.

The Visio 8″ Tablet has a low-power 1Ghz processor (which after some investigation into this matter and receiving a log of the /proc/cpuinfo output from the device, we believe it to be a single-core Marvell Armada 600 series SoC) and 512MB of RAM, with a total onboard user storage capability of 2GB.

The device has 4GB total flash, with 2GB reserved for OS and system data.

It also sports a single front-facing VGA camera, similar to the iPad’s or the HP TouchPad’s.

This device is obviously a great deal less beefy than any of the other Android tablets out there. But it does have a few notable advantages.

Firstly, it runs a highly-modified version of Android 2.3 “Gingerbread”, the proven, stable OS with the highest amount of application compatibility and lowest resource requirements.

And if it does have the low-power single-core Marvell CPU as we suspect, it might even have decent battery life, which is currently advertised as “Up to 10 hours of normal use” on Vizio’s web site.

Secondly, we have it on very good authority that this will be one of the first Android tablets to ship with a Micro-HDMI port that supports HDCP.

[UPDATE: In the original copy of this article, we stated that the product will ship with the Netflix player out of the box. According to Vizio's official public relations firm, it will not. However, HDCP has been a pre-requisite for licensing Netflix's software on devices that have HDMI output, so it would not surprise us if the software became available shortly after the product's release.]

To make up for the anemic on-board flash storage, the device will have a MicroSD slot that will support up to 32GB SDXC cards for installing apps and user data.

It also has an IR blaster on it so it can act as a universal remote control for your TV set. Vizio’s PR representation has informed me that the universal remote software, which was developed internally at the company will be shipping with the device, and it can be used with 95 percent of all North American consumer electronic devices.

[UPDATE: In the original copy of this article, I had stated that the tablet will ship with a media streaming service, MOG, as well as Barnes & Noble's NOOK, Hulu and the ooVoo Voice and Video chat/conferencing service. Vizio's PR representation has informed me that it will not.]

The device will ship with three onboard speakers, so that no matter how you orient the device, it will have stereo sound.

Additionally, the hardware button limitations of Gingerbread have been overcome with illuminated “smart buttons” along the screen bezel area which are used as UI elements when the device is rotated.

A special “Skin” for Gingerbread has also been designed to optimize the device for tablet use, so that it doesn’t suffer from the original problems of the first 7″ Samsung Galaxy Tab, which was based on Android Froyo 2.2.

If there was any doubt about it, this is targeted as a low-cost home entertainment and media consumption device for the masses.

The Vizio 8″ Tablet isn’t likely to attract anyone seriously looking at an iPad 2 or even a Samsung Galaxy Tab 10.1. But for the millions of people that don’t have a tablet and need something “Good Enough” this may fit the bill.

Just as plenty of people didn’t want to pay premium prices for the SONY Bravias, Sharp AQUOS and Samsung HDTVs and opted for the cheaper Vizio sets, I expect that there will be a market for lower-end Android tablets for people who don’t want XOOMs, Galaxy Tabs or even iPad 2s.

Vizio is about to put that theory to the test.

Vizio will not be the only company to come out with these “Good Enough” sub-$350 devices. If Vizio can do this, then I suspect so can Amazon, which actually can monetize something like this with “Special Offers” and their own cloud services such as Amazon Appstore, Amazon MP3, Amazon Video and Kindle.

Also Read:

I wouldn’t be surprised if Amazon’s tablet had near-identical specifications to this thing, or maybe even less, and ship for under $300. Maybe even considerably under $300. Which brings us a lot closer to the price points of things like netbooks and even lower than things like Chromebooks, which probably puts both of those device categories in serious jeopardy.

And that may force even the premium Honeycomb device players to start thinking creatively.

Are you planning to purchase one of these inexpensive Android Tablets when they come to market? Talk Back and Let Me Know.

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Topics

Jason Perlow, Sr. Technology Editor at ZDNet, is a technologist with over two decades of experience integrating large heterogeneous multi-vendor computing environments in Fortune 500 companies.

Disclosure

Jason Perlow

My Full-Time Employer is IBM. I write as a freelancer for ZDNet.

Disclaimer: The postings and opinions on this blog are my own and don't necessarily represent IBM's positions, strategies or opinions.

I own no investments or direct financial instruments in the companies I write about.

Biography

Jason Perlow

Jason Perlow, Sr. Technology Editor at ZDNet is a technologist with over two decades of experience with integrating large heterogeneous multi-vendor computing environments in Fortune 500 companies. A long-time computer enthusiast starting the age of 13 with his first Apple ][ personal computer, he began his freelance writing career starting at ZD Sm@rt Reseller in 1996 and has since authored numerous guest columns for ZDNet Enterprise and Ziff-Davis Internet. Jason was previously Senior Technology Editor for Linux Magazine, where he wrote about Open Source issues from 1999 to 2008.

In his spare time, Jason is an avid amateur chef and food writer, where his work reviewing New Jersey restaurants has appeared in The New York Times. He is also the founder of the popular food web site eGullet and blogs about restaurants and cooking at OffTheBroiler.com.

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donaldsjones 9th May
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If not for homebutton "V", one could easily think it as iPad. If one thinks GalaxyTab 10.1 as the copy cat of iPad, then this overtakes that position. happy
0 Votes
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@Rama.NET
Is this worth waking up for?
We'll see!
@kd5auq
Zzzzzz........
wink
Android 2.3??? For that price, I think it's too high. Perlow gives the ridiculous explanation that not getting a better tablet like the Transformer for $50 more is worth "because of Netflix" (and similar). Sheesh
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Meh
brant@... 20th Jul
@kd5auq
I am with you on this one. This isn't breaking news even if it has a catchy headline. There have been good 1GHz processor tablets out there at sub $350 for a while now. This is not a market changer. In fact it probably wont even sell that good. It is not the best bang for your buck at all. You can get most of these specs from the Archos - 101 Internet Tablet and such for more like $200.
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Not worth waking for...
i8thecat3 21st Jul
@kd5auq

Besides.. Vizio TV's are horrible hunks of junk... One look at the cheep warped plastic bezel is all the confirmation anyone needs. I'm wondering if the wannabe tablet is just as cheep and junky.
Is it just me or does 350$ seem grossly over priced for such a under powered machine? $50 more you can get a ASUS Transformer that is way more powerful with more storage.
@Bates_ The Transformer will never run Netflix. Neither will anything that doesn't support HDCP.
@jperlow Still don't think that is going to MAKE this tablet.
@_bates this is not about making this one tablet. It's about pricing disruption of the entire Android space.
I think it will cause others to rethink their prices.

And the fight to the bottom, price wise, has always been something that is a positive and a negative.

It will get Android Tablets out there more, but at what cost?
@jperlow
First don't say never.....
Second, if it was running Honeycomb I would agree. It's not. Too easy to differentiate.

Those who are looking at a honeycomb tablet will get one. Those who are looking at really cheap might be swayed.

Let's see.... plain
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What cost?
Economister 19th Jul
@goff256

What was the "cost" of laptops going from $3000 to $500 over a decade or so?

Giving everybody and their dog the ability to buy a laptop is only good in my view. Same for tablets. Competition and manufacturing advances driving down prices are important underpinnings of our advanced, affluent societies.
I was thinking more along the lines of the 250$ netbook craze. They were made from cheap parts, put together poorly, and thrown out there.
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@Bates_ you all seem to be forgetting the viewsonic gtablet uses the same hardware as the xoom or Acer (arm A9 dual core 1ghz+ nvidia tegra 250 8 core GPU) when it came out it was $250 and last time I checked it was $269 sure it doesn't have 3.x but with custom roms, wich is one thing that has to be done to every OEM android device, the device will at least double in power and efficiency.(after a custom rom was installed on my HTC desire it scored higher than the xoom even though its a single core CPU+GPU and seven though I use it more now the battery lasts about 3 hours longer) and sure the gtab doesn't have 3.x yet but it wont take long for cyanogen or tnt to have 3.x


Posted with my HTC desire
@Feds Against Guns I didn't forget it at all. I am referring simply to a true Android tablet which in my eyes, is a tablet running Honeycomb. You make an excellent point though, but my Transformer already has a custom rom running 3.2 and is OCed to 1.5ghz and is running as smooth as can be.
If there was any doubt about it, this is targeted as a low-cost home entertainment and media consumption device for the masses.

For what it's lacking... I don't know if that price is low enough. At $300 - Definitely. At $350, we'll have to wait and see.
@Badgered I believe $350 is really just a starting point. I expect this thing to drop to under $300, especially if Amazon enters the space at that price.
@jperlow This sounds likely. At $350 there's just not enough value there. We're getting pretty spoiled out here.
So has anyone bothered to do a poll on consumers to find out why they are buying up iPads? And not the other competing tablets, many of which are already lower powered and cheaper?

Looks like Sanjay Jha at Motorola bet wrong with the Xoom's beefy hardware specs and steep premium pricing at launch. So now we are looking at other companies pushing $300 "good enough" tablets in the market, running older modified phone OS not originally built for tablets (Gingerbread). And running phone apps. UI will probably do the usual stutter dance when scrolling and the viewing angle will probably be bad. Are we sure this is what consumers are looking for in tablets?
@dave95 I want to reserve judgement on this until I actually see a device. The Marvell 618 is no slouch for a low power chip, and Vizio knows displays. We could be pleasantly surprised.
@jperlow

We shall see. But Vizio is the brand associated with cheap, so my expectations is not very high.
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@dave95.
Apple has the best ecosystem. If Apple were to put out a $300 iPad 'lite' with a slower processor and worse viewing angle, those would sell out too (not to suggest Apple would do that, it isn't in their nature).

Right now it looks like anyone that can afford the starting price of $500 is buying an iPad. But not everyone can afford $500 so I don't see anything wrong with companies trying to capture the "I still want a tablet but can't afford an Apple" consumer.

Look at it another way: of laptops that are over $1,000, I believe Apple has something like a 95% share. That doesn't mean that no one should offer laptops that are cheaper than $1,000, does it? I don't think so. So while Apple has a near 100% share of tablets that are over $500, this doesn't mean that no one should be making tablets that are less than $500. Or is my reasoning wrong?

I just worry about this patent war that could have any non Apple smartphone and tablet be deemed to be an illegal product. Hopefully Apple will decide to license their technology so that others can make $300 tablets but I don't personally believe that will happen. I think we are about to see the death of the non Apple smartphone and tablet.
@toddybottom The problem with this argument (and I think it has some merit) is that the people who don't want to fork out a mere extra 150 bucks are also the people who will not buy apps. Therefor the developers ain't gonna develop for a platform full of spendthrifts.
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@global.philosopher ... don't want to pay for apps. So you are correct, Android users are mostly people looking for the cheapest crap they can find, not necessarily investing on the technology.

That is why even though Android has more "smartphones" in the market, when it comes to making $$$ on apps, the iPhone is the king at making money for developers.
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No
MSFTWorshipper 18th Jul
@toddybottom It's also the quality of the screen, the A5 processor and the just the solid industrial design. The fact that you can watch 720p video without stutters. All these things matter as much as the ecosystem.
0 Votes
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How about the people who ...
Economister 19th Jul
@toddybottom

CAN afford an iPad, but for a variety of reasons choose to buy something else?

Elitist fan boy by any chance? There is another word for that: sucker.
@toddybottom

Nothing wrong with building a $300 cheap tablet. My concern is with companies releasing a new tablet every few months without fully grasping the market they're targeting. It just seem like one big public display of trial and error with every release going back to the beginning of 2010. First it was tablets like the Dell Streak and also the HP Slate running Windows with dedicated alt-delete button (lol). Then tablets tied to carrier contracts that didn't sell for obvious reasons to everyone but the OEMs and carriers. And Tablets like the original Tab with phone os that never sold much. Then OEMs became a little wiser and began shipping their wifi tablets first, making it priority (though anyone looking at the original iPad could have figured which one was the best seller, wifi!). Then came the beefy premium flagship Honeycomb tablets that never sold much either. Moto was certain that it was all about the beefy specs the masses wanted so they defended their $700 pricing (more expensive than the hot selling iPad, insane). Now it's lower powered Gingerbread tablets turn again to try and grab consumers and bloggers attention. "Will this be the one everyone's been waiting on?" The lowered expectation good enough cheapened experience stuttering UI tablet running phone apps?

I'll give Vizio some credit for trying something different from the others in unify the UI experience between their phones, tablets and TVs. But I'm not so sure this will sell all that well either. While it's nice they're unifying, it also place them in a niche space from the start targeting consumers with Vizio sets. And Apple already have this unifying/tying of devices space covered, and will become even better with iOS 5 and their cloud sync services.

One have to ask if there really is a tablet market aside from what Apple is doing with their iPads. We tend to hype the competitors offerings as being "the one" that's going to sell before release and have it just fail once released.
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@dave: you are probably right
toddybottom 19th Jul
"One have to ask if there really is a tablet market aside from what Apple is doing with their iPads."

Maybe iPad is the only tablet that will ever sell well. One wonders then why anyone else bothers.
@toddybottom

I would hope not, we need competition for Apple in this space to drive innovation forward and to bring down cost (component cost etc) which will benefit us all. I just wish they would wise-up, take polls, do focus groups if needed to understand what consumers really want before releasing yet another ho-hum tablet that will be ignored in the market. Not much to ask...
I'm not thinking about buying one of these inexpensive Android tablets because I already own one.
I do not wish to end up having a desktop a laptop a smartphone and a tablet (and they all serve the same purpose)... smart people should not fall for Apple progapaganda ...
@AdnanPirota

Take your desktop on a 10 hour flight and watch movies on it.

Seeing as they all serve the same purpose.
0 Votes
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Nothing to see here...
Mike Cox 18th Jul
Another article about under-powered tablets. We all know that Windows 8 is primed, locked and loaded to deliver the PC power in a tablet form factor. So why even bother releasing any other tablets. Android and iOS have failed at penetrating the corporate market. As an all-powerful and all-knowing CIO, I have made it a firing offense to be seen carrying any of these so-called devices. My rep has congratulated me on this line of attack and offered to sell me some of his Microsoft shares.
@Mike Cox Exactly. Windows 8 tablet will be the real iPad killer. A true Windows eXperience to be treasured! I will celebrate with my rep at Yarrows over scones.
0 Votes
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You guys should .....
Economister Updated - 19th Jul
@MSFTWorshipper

make it a foursome happy


Let us know how it went.
  • Flagged
@Mike Cox

Oh man, how many employees did you already fire for sneaking in iPhones Mr. Cox? Lol
@Mike Cox Thank You Thank You Thank You... I have missed you and your MS rep stories.
0 Votes
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8.5 / 10
Badgered 19th Jul
@Mike Cox

Much better this week.
@Mike Cox

Dang, I missed ya and yer reps A LOT ! ! !
Welcome back.
Considering there are already tablets like the Viewsonic GTAB that has close to Xoom specs for $300 and under, this is not anything to see.
@clintre@... Considering there are already tablets like the Viewsonic GTAB that has close to Xoom specs for $300 and under

Not all that close to Xoom specs. However, it is on par with this Vizio device, and sells for about $260 on Amazon. Vizio will have to be around the same price range... or it'll be an also ran.
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screen size varies by the square of the hypotenuse (with credit to Gilbert and Sullivan). Which means an 8 inch screen is nearly 25% smaller than a 9.1 screen. That is a lot more than just "slightly smaller." It is also 30 percent larger than a 7" screen, arguably the largest practical size for the Android phone OS.

That plus the use of low-powered memory constrained hardware on an OS known for its hungry memory and performance demands means it doesn't take a rocket scientist to figure out that this thing is going to be subpar in just about every matrix imaginable, and using it will be like suffering death from a thousand paper cuts.
@fr_gough
I agree with you - screen sizes make a difference. I have an iPad and reading magazines using Zinio, in my opinion, is only "just" possible on its screen. I do not believe that reading magazines on a smaller screen would be enjoyable. Note that I am specifically referring to magazines!
@ptorning Yup, you are right. I have Zinnio on my Galaxy Tab and it sucks. Otherwise, I love the 7" format. I take it everywhere and I wouldn't carry around an iPad.
0 Votes
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The IR blaster on this device alone will make it a winner. Look at the $500-$1000 price tag of other touch screen remotes out there . If the IR blaster is up to the task then this alone will sell the unit. As far as power goes, not so concerned with dual core in a tablet.. most apps are not written for multi-core use so it really is a non-issue. Besides, its a tablet not a PC. As for price I don't suspect there will be any notice from the major players. People who are brand loyal and those who determine quality by name will always be willing to pay more. I suspect that within 2-3 years Vizio will be the top seller of tablets (as they are with TV's). I would expect a merging of the tablets and TV's in the near future which should bring some other interesting features (like the IR) to the tablet.
It would seem to me that if they commit to coming out with 3.x at some point (maybe a few months down the road) , they will have those who want cheap now, but upgradable later. Question other vendors already have HDMI, can they just do a firmware/Software upgrade to add HDCP support, or do they need hardware changes to support (i.e. can they ADD HDCP as part of an upgrade). May help them close the gap with this feature on VTAB.
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I'll pass
rag@... 19th Jul
If it says Vizio on the front, my wallet stays in my pocket.
@rag@...

sad but true... there are a lot of people who feel like you do.. But that's why apple makes money..
When you break down this or any other tablet out there you get the same exact hardware components. Vizio components are no different and are not manufactured by them. they just slap them together in a case . unlike Laptops which are mostly differentiated by Graphics power. Tablets have a bit of a problem there since I can't see anyone making a tablet which requires a Ninja fan to keep it cool inside for gamers. So basically you will run apps ,Video and surf the web. So I see no difference between what brand of tablet is purchased. (except the 6 foot drop test)
0 Votes
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I merely would
donaldsjones 9th May
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