According to a report on March 29th by Taiwan’s “Electronic Timesâ€, Google will cooperate with Asustek Computer in order to compete with Amazon and publish 7-inch and inexpensive tablet computers in May-June 2012. This will bring price pressure to other Google competitors, including Acer, Lenovo and Samsung Electronics. This will also reduce the gross profit of Taiwanese supply chain manufacturers.
According to reports, Amazon's new tablet PC, Kindle Fire, will be released in the third quarter of this year, and its price may be around 199-299 US dollars. Google will bid $199 for its tablet to gain a competitive price advantage. However, the price war between Google and Amazon is likely to seriously affect the price of 7-inch tablets, which will prompt the tablet computer field into fierce competition.
Currently, the price of Acer and Lenovo's 7-inch tablet PCs has been reduced to about 279 US dollars, and Asustek's 7-inch Memo 171 and Samsung's 7.7-inch and 7-inch tablet PCs are still priced at more than 500 US dollars. However, since Asustek plans to release its new MeMO 370T at a price of US$249 soon, it is very likely that Samsung will soon be forced to reduce its product prices. Other second-class white-box participants even reduced the price of their tablets to $159 in order to survive in the tablet space.
It is reported that although the current average gross profit of tablet PC products is approximately 10-15%, as the price of tablet PCs continues to fall, and the relevant specifications are increasing, the gross profit of tablet PC products is likely to decline rapidly. This will force downstream vendors and upstream component manufacturers to compete for the only meager profits.
According to reports, Amazon's new tablet PC, Kindle Fire, will be released in the third quarter of this year, and its price may be around 199-299 US dollars. Google will bid $199 for its tablet to gain a competitive price advantage. However, the price war between Google and Amazon is likely to seriously affect the price of 7-inch tablets, which will prompt the tablet computer field into fierce competition.
Currently, the price of Acer and Lenovo's 7-inch tablet PCs has been reduced to about 279 US dollars, and Asustek's 7-inch Memo 171 and Samsung's 7.7-inch and 7-inch tablet PCs are still priced at more than 500 US dollars. However, since Asustek plans to release its new MeMO 370T at a price of US$249 soon, it is very likely that Samsung will soon be forced to reduce its product prices. Other second-class white-box participants even reduced the price of their tablets to $159 in order to survive in the tablet space.
It is reported that although the current average gross profit of tablet PC products is approximately 10-15%, as the price of tablet PCs continues to fall, and the relevant specifications are increasing, the gross profit of tablet PC products is likely to decline rapidly. This will force downstream vendors and upstream component manufacturers to compete for the only meager profits.
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