In an earlier post I talked about the new tablets being created that run on the Android OS, and as of then prices had not been announced. Well the first tablet, the Verizon Xoom, has had its price announced as well as how you will be able to get your hands on it. The Xoom will use Verizon's 3G network, cost $600 with a contract, and will require a $20 data plan.
This device seems to be a good competitor for the iPad if, of course, you are planning on getting a tablet that uses 3G. The iPad that has access to 3G is $629 which is only a bit more than this tablet, but the iPad doesn't require a contract. If you want to get your hands on the Xoom without a contract it'll cost you an extra $200 bringing the price up to $800. Some would stop right there simply because of not wanting to get roped into a contract, but if you're going to use a 3G network anyway then the contract isn't much of a big deal. One thing that will make the tablet better than the iPad is the fact that it will be given access to Verizon's 4G network sometime later this year for free. I think that the price point of this product is good to compete with the iPad, but I also think the contract is going to scare people away and really limit the amount of units sold. Even though this tablet will more than likely not be more popular than the iPad, it does take some business away from Apple and makes it so Apple can't charge whatever they want for their product. Apple can't charge whatever they want for their product anymore because they have to make sure they can still beat out these new tablets for consumer attention. This means that Apple will have to keep its prices at or around the Xoom's which is good for us consumers because if anything all the prices will do are fall allowing people to spend less of their overall income. However, for Apple this means that they will most likely start making less money, maybe not much but the amount of money they lose will grow as more and more tablets are introduced into the market because there will be more competition. For a first attempt by Android this is a very strong entry, but if they can't break Apple's hold on the market then this product will fall by the wayside.
8 comments:
How could rising gas prices affect the market for this tablet?
This tablet will probably be appealing to existing Verizon customers, but not anyone else because of the contract issue. There will probably also be Verizon customers that want the iPad just to have the Apple product and not the "knock off." If you're going to shell out all that money for something like that, a lot of people might give the extra $30.00 for the status of having an iPad.
This product will not rival iPad in any way. Apple has a market hold like no other company on earth. I believe they captured the market with the introduction of the iPod. iPod's require that you use iTunes on your computer whether it is Mac or PC. If you owned a PC the first time you bought an iPod like me you were probably unaccustomed to the iTunes style. The application was much more 'fun' looking to the eye and it brought you what made you happy, music. Apple exposed millions of people to their style and functionality through the iPod propaganda. Since then Apple has exploded with the introduction of the iPhone and now the iPad people are using Apple products more than ever and it all started with a now obsolete iPod. So many people own or have owned Apple products that it significantly lowers the number of possible consumers of the Verzion Xoom. By the way what kind of name is Xoom? In a world that is all about you (I) "i" products rule.
Most companies in the phone and tablet markets do not raise the price of second generation products but they do not lower prices either. If this holds true, how could these new competitors affect the development of Apple products? Will this help or hurt consumers?
I think by raising the price their tablet for non-contract users, Verizon is seriously hurting their sales. Who wants to pay an extra $200 for a tablet with no network support? I think iPad will continue to dominate the tablet market for years to come.
To Easton: The actual Xoom 3G device costs less than the 3G iPad, when it is on a contract. I think the idea is that you are already going to spend more money on the iPad if you decide to get the 3G version so why not get the device that is soon going to be upgraded to 4G for free. With the 4G speeds the Xoom will actually be a better machine than the iPad, for on the go usage.
To Kern: My first guess as to what Apple will do to compete with this new tech is announce a 4G version of their iPad. An announcement like that could put the two devices on a level field, which would put the deciding vote on who wins in the consumers hands. This would help the consumers because each company would push to beat the other to the next best add on to their current version of their device.
Ethan you have a good point. 4G internet service is going to be very attractive when it comes out on the new Verizon LTE network. I bet Apple is kicking themselves for choosing AT&T now. I’m not sure they will be exactly equal if the iPad get 4G if the iPad II comes out with 4G it could be more advanced, and I’m betting it will. Consider all of the people who download a lot of Hulu or YouTube constantly and how fast the data will be used up. I have an unlimited plan for my iPhone with AT&T and believe me I get my money’s worth between me and my kids watching live TV and recordings through my DISH Network employee Sling adapter. I idea of a larger screen would be great, especially in the car for my kids, but the data plan would cost me as much as my mortgage. They need to come out with an unlimited plan (I would pay up to $100 to avoid overage) and combine it with phone use, then I would switch networks. More people will be using TV everywhere technology too especially now that the DISH 922 Sling loaded HD DVR is getting more well known.
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