PCB News - Tablet PC manufacturers first unveiled the prelude to the price war in the electronics industry

Tablet PC manufacturers first unveiled the prelude to the price war in the electronics industry
For a long time, companies in the electronics industry have always adopted "doing faster, better and lower cost than others" as their business development motto. Therefore, in the tablet computer market that has been heating up since its inception, everyone should not be too surprised when this actual phenomenon begins to ferment. In this market, every manufacturer seems to be racing into an unknown world and trying to gain a foothold from it.

What is really surprising is that the companies that started the price war in the first place were not traditional electronic companies, but some e-commerce (e-commerce) companies with global market strength.

Amazon.com recently issued a war post to Apple Inc. and hinted that its strategy of combining price and user experience is expected to win the frontline battle in the tablet market. Not to be outdone, Apple launched the iPhone 5 as scheduled and lowered the price of the product. This implies that the next-generation iPad may also be followed by price cuts.

When the product was officially released, Amazon CEO Jeff Bezos announced that the new 8.9-inch Kindle Fire HD tablet (4G) is priced at US$499, which is equivalent to the price of the entry-level Apple iPad. The Wi-Fi version of the tablet is US$299, and the 7-inch/16 GB Wi-Fi version is only US$199.

Widespread comments in the industry believe that Amazon's search for the best market positioning reflects the general market strategy of how manufacturers weigh price and user experience. In addition, although the industry's response to Amazon's first version of the tablet has been poor, the latest product suite has clearly improved the previous shortcomings.

According to the detailed analysis of the ReadWriteWeb website, Amazon adopts a "sell first, profit later" approach, hoping to cater to user needs at a more competitive price point. After the hardware is sold to users and the device starts to be used, the The company can make money. However, Apple sells products at higher prices, which means that Apple is mainly profiting from selling hardware products, rather than emphasizing after-sales service or applications.

MarketWatch also pointed out that Amazon will not only compete with Apple’s tablet, investors believe that Amazon’s tablet will also directly compete with Microsoft’s upcoming Surface tablet and Google’s new Nexus tablet.

Just as Apple and Samsung compete for market share in the smart phone market, the tablet market is about to become a new market that many competing manufacturers are striving for. According to Gartner's forecast, tablet sales will reach 119 million units in 2012, a significant increase from 60 million units last year.

At the same time, in the secondary market, even large toy stores are optimistic about the lucrative tablet market. Toys R Us will launch a $150 tablet for children, equipped with Wi-Fi connectivity, parental monitoring and 50 pre-loaded applications.

While the tablet PC market is still open and consumers are still waiting to choose their favorite product series, every major manufacturer in the field is trying to gain a firm foothold in the market. Is it user experience or price to win? In just a few more seasons, we will know which strategy will capture the hearts of consumers.
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