Ahead of its rumored release date next month, more iPad 3 rivals are set to join the tablet market. Can the “premium strategy” survive the growing market?
Barnes and Noble’s Nook Tablet with 8GB storage is reportedly joining the tablet market this month, and it looks like the device is set to steal the “cheapest” title from Amazon’s Kindle Fire.
According to the rumors, the Nook Tablet 8GB will introduce a new price tag, presumably cheaper than the 16GB variant’s $249, and some tech sites predict that the new 8GB Nook Tablet will be priced around $150 to $199. But here’s the catch, if you divide $249 by two (16GB divided by 2 is 8GB), then the unannounced Nook Tablet could sport the “game changing” $124.50 — crazy?
Analysts believe that there’s a market for cheap tablet computers in United States based on the estimated Kindle Fire sales last quarter and last month.
One analyst predicts that Amazon has sold at least 5 million Kindle Fire tablet computers since its launch last quarter, and it means, the whole 5 million Kindle Fire owners are new (or enhanced) Amazon customers that are only allowed to buy applications and other digital products through Amazon’s stores, giving the retail giant additional revenue stream.
If so, then it looks like the new Nook Tablet wants its own vibrant new customers that buy apps and music, or rent movies. I should mention that Amazon’s ecosystem is bigger than Barnes and Noble.
The new Nook Tablet is one of new Android devices that will go on sale this quarter alongside the rumored iPad 3. Can Apple maintain its tablet market lead? Last quarter, Apple’s tablet market share dropped to 57 percent Q-to-Q from 64 percent as cheaper Android tablets appear online, specifically the Nook Tablet and the Kindle Fire.
The cheapest iPad is the 16GB iPad 2 WiFi only sporting the tag price of$499, so obviously, you can buy two Kindle Fire tablets (with $101 change) with that amount. One analyst said Apple must join the 7-inch tablet wave to protect its market share.
Apparently, some iPad 3 rumors say the tech giant is expected to introduce an 8-incher iPad after its iPad 3 event next month, and if true, one analyst said it will ”crush the opposition.”
Another possible scenario after the iPad 3 event is the “cheaper iPad 2″ strategy allowing Apple to introduce new price tags for its older but still big iPad 2.
The bottom line, some customers want “smaller tablet computers” while others prefer cheaper tablet computers. How can Apple maintain its tablet market lead with just one option?
