Saturday, June 5, 2010

Price is Key to Android Tablet Success

The latest Retrevo Pulse study asked over 1,000 people what phone they planned to buy this year and over 20 percent of the respondents indicated an iPhone. If that number holds up it could be another good year for Apple and the iPhone.

But the bigger issue is whether it already is essentially too late for other contestants to prevent Apple from dominating the category as it does MP3 players. So far, Apple, though a top contender, has not reached the level of market share domination in smartphones that it has in MP3 players. But nobody doubts Apple will try. And history suggests all other suppliers have to be worried about the sudden emergence of the tablet category as well.

Are we looking at another Apple dominated product category like the iPod did with MP3 players?

When Retrevo asked consumers what would prevent them from buying an iPad, the most common answer was “don’t need one,” followed by “too expensive.”

As most would have expected, users that already have an Apple PC or iPhone are more likely to think they need an iPad. When it looked at the iPhone owners, Retrevo found only 26 percent of those users thought they didn't “need” an iPad.

The Retrevo study also suggests that the e-book reader market and the tablet PC markets are distinct, to an extent. The company found a significant number (40 percent) of consumers who own or plan to own an e-Reader also plan to buy an iPad in 2010.

When Retrevo asked consumers what would get them to buy an Android-based tablet over an iPad, the number one answer was “price.”

While 53 percent of  respondents said they weren’t interested in buying a tablet at all, of the other 47 percent who wanted one, a little over half (53 percent of those who said they wanted a tablet PC) said they’d buy an Android tablet if it was less expensive than an iPad.

Also, 33 percent said they would buy if the tablet used the Verizon network.

If manufacturers of Android-based tablest want to grab significant share in the market, the poll suggests there is at least one thing they can do: create a device that doesn't cost as much as the iPad.

read more here

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