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Why the iPad Is the Most Hated Gadget Ever

Posted on December 18th, 2011 at 11:46 by John Sinteur in category: Apple, Google -- Write a comment

[Quote]:

Here’s the under-appreciated reality of all this: HP, RIM and Amazon have all moved millions of touch tablets into the market at below cost. This has caused two problems for the market. First, it’s created a domino effect. HP’s fire sale on the TouchPad cut demand for the BlackBerry PlayBook, reducing unit sales. That contributed to RIM’s need for a fire sale of its own. (Plus, Amazon has probably long intended to sell below cost.)

All this crazy, unexpected discounting has both artificially taken market share away from the various Android tablets, and re-set consumer expectations about how much a touch tablet is supposed to cost.

Now, the only way to sell a non-iPad tablet in any significant quantity is to sell it below cost.

Android tablet makers are faced with the choice between making a little money on each tablet but selling few, or losing money on each tablet and selling many.

It’s a horrible state of affairs for the tablet industry, unless you’re Apple or Amazon. And it’s almost entirely the fault of the iPad.

The iPad’s reception convinced the industry that they could succeed, too. The success of the iPad made HP and RIM vastly over-estimate demand. And the success of the iPad made it impossible to compete against the iPad in the market, forcing companies to ultimately dump inventory at below cost and, in doing so, nearly destroy the Android tablet market.

That’s why the consumer tablet industry hates the iPad. But they’re not the only ones.

  1. So iSuppli estimated on release of the iPad1 that its COG was $260. Amazon comes out a year later (meaning parts should be getting cheaper) with a device that’s clearly cheaper to make (7″ vs 10″ display to begin with) and is said to be losing money on it at $199. ($185 parts, $201 incl manufacturing) I know that Apple gets discounts for economies of scale and is a tough negotiator, but Amazon is no slouch and wasn’t ordering small quantities.

    Samsung can make most of the parts in-house and thus should be able to produce comparable hardware at the same cost or less, and compete on price. But the Galaxy Tab 10 still sells for $460. I guess I find the $260 COG for the iPad hard to believe. Something here doesn’t add up anyway.

  2. Maybe they should quit making so many clones and concentrate on making one right. Oh yeah, that’s the iPad.

  3. I haven’t heard much about app development for Android tablets. What, if anything, is google doing to encourage it?

  4. Not that I am aware of. Amazon is pushing really hard to remove some features from apps I have so it will run on the Fire. Not bloody likely…

  5. As an owner of both android and apple devices, I think that who bothers about availability of apps under android has never ever seen android market. There are almost all the most known apps available under iOS, many more, they are usually cheaper and some big names (such as Autodesk) now publish their products on Android Market well before iPhone…

  6. Every report by developers I’ve seen indicates iOS sales way larger than Android sales, so apparently most people do not bother about availability of apps under android..

  7. I definitely bother about availability of apps.
    And when there are no good quality, easy to use and useful apps for free, then I even consider buying one – as I did with the London Tube and Bus Map for example.
    Unfortunately the Android market is full of good quality, easy to use and useful apps that are free.
    And £0.00 is cheaper than £2.49.

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