Tablet Wars Price Fight: Immediately Changed from Pie to Pitfall

Following Lenovo, Acer and HTC, another domestic manufacturer, TCL Communication, recently announced its entry into the Pad field. It introduced two tablets based on the Android system for the first time. Its lowest price was only 1,999 yuan, again triggering a price war for tablets. Experts said that homogenization of products and the entry of many manufacturers, for PC and mobile phone manufacturers, the seemingly beautiful tablet PC is likely to be a "trap" instead of a "pie."

The market may fall into the "Red Sea" early After the Apple chief executive Steve Jobs announced his resignation as CEO, Apple's competitors seem to see the opportunity to defeat Apple. In the tablet market, the challengers are even more eager to try, Amazon, Sony, Samsung, Acer, Lenovo and many other manufacturers have introduced or will launch new products, intends to take this opportunity to “enclash” Apple, seize market share, and re-definition flat-panel market .

The price war on this tablet is rapidly spreading. The price war on the 7-inch tablet has burned to around 2,000 yuan. Apart from Apple, other brands of tablet computers are involved.

It is reported that the first price to pull down is Asus. Asus’s 10-inch tablet came out at $399, setting the tone for PC makers’ tablet products. Dell's Streak 10Pro, the world’s first 10-inch tablet, is available in Beijing for only 2,999 yuan. Yang Chao, Dell’s vice president and president of Greater China, said that Dell’s ability to enter the tablet market at such a low price is not to provoke a price war but to give users the products they need.

Reporters at the Xibahe Gome (microblogging) shop to see, the current domestic brands of tablet PCs are mostly under 3,000 yuan, like Acer's new 7-inch tablet A100 for only 2499 yuan. “You can casually put it in your pocket or in a small bag. It's very stylish,” said a salesperson.

"The 3,000 yuan has become a watershed for tablet competition. From the perspective of the price reduction actions of various manufacturers, it is estimated that the tablet PC will fall into the Red Sea in early 2012." A domestic manufacturer of the market told reporters.

Homogeneity allows manufacturers to compete and go back to the old road. "Many PC manufacturers and mobile phone manufacturers regard tablet computers as the next gold mine, but the reality is that tablet PC manufacturers have not yet had time to enjoy the profits of tablet computers, they have to face cruelty. "The price competition." Li Zhongcun, head of the mobile Internet portal technology news, told reporters.

It is reported that as the originator of tablet PCs, Apple still retains its absolute advantage in the tablet market. According to the latest report, Apple iPad’s sales this year will account for 74% of the tablet market, and its absolute advantage in the tablet PC market can continue into 2013, which is longer than the agency’s previous expectations.

Li Zhongcun believes that Apple is still the only big player, and it seems impossible for competitors to launch a tablet that can compete with the iPad in terms of hardware, marketing, software, and content. In addition, Apple’s patent warfare is also delaying competitors' steps.

According to a reporter from the Zhongguancun Hailong Mobile Connected Media Terminal franchise store, the tablets currently on the market have all adopted the Android system. Their appearance, hardware and configuration are basically the same, and product homogeneity is very serious.

"A large number of manufacturers have entered the field, but these manufacturers still follow the traditional mode of operation of consumer electronics products. Product homogeneity, and ultimately allow these manufacturers to return to the competitive nature of hardware, brands, channels, prices, which with the early years of personal computers Manufacturers' competition is very similar. The price war will make the entire market more hostile to competition." A merchant operating a multi-year electronic product at Dinghao sighed at reporters.

The cottage manufacturers may be the first to leave the Apple computer to create a tablet era, iPad's innovation has attracted many consumers sought after, Tablet PC boom began to sweep the world. In the face of the fiery tablet market, PC makers and mobile phone manufacturers will naturally not let go, and they all want to share in a cup. Take the Chinese market as an example. Some industry insiders point out that so far, there are already 1,000 manufacturers in China who have entered the tablet PC. In the Chinese market, the shipment of tablet PCs in the second quarter of this year was 1,441,400. In addition to Apple, Samsung, Asus, Motorola and Lenovo all had a share of about 13%, and the remaining 1,000 manufacturers could only compete for the remaining 12%. The market is poorly profitable.

The reporter found that the current two camps of tablet PCs have basically taken shape. The "Homeland Pad Corps" represented by domestic brands, mainly attacking the low-end market, and "Overseas Pad Corps" represented by Apple, Samsung, and Amazon, are focusing on the high-end market. .

Analyst International analyst Sun Peilin pointed out that the iPad's value is even more reflected in Apple's app store, and PC and mobile phone manufacturers still follow the traditional model when they are doing flat-panel market, which makes the first round of the market with price-driven market broke out. The cycle is being rapidly compressed, and more products are just making cannons for the iPad. "The second half of the year is the peak season for terminal sales, but the number of flat panel manufacturers will continue to grow, and they will continue a very intense price war. New brand tablet PCs without hardware features, brand capabilities, or channel advantages will be in price wars. Gradually out, the proportion of cottage manufacturers will gradually reduce."

Related news Apple iPad2 market share rose to 68.3%

Market research company IDC latest data show that in the second quarter of this year, Apple's iPad2's share of the global tablet PC market has risen to 68.3%, and Android tablet PC's market share has declined.

IDC said that in the second quarter of this year, global shipments of tablet PCs totaled 13.6 million units, an increase of 88.9% from the previous quarter and an increase of 303.8% from the same period of last year. In July, iPad sales reached 9.25 million units, and Apple’s share of the global tablet market has therefore increased from 65.7 percent in the previous quarter to 68.3 percent.

At the same time, Android tablet's market share fell to 26.8% from 34% in the previous quarter. IDC expects the market share of Android tablets in the third quarter of this year will further decline to 23%, but in the fourth quarter its market share will rise to 25.9%.

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