Google tablet market foray has no doubt raised the stakes for everyone.. and as its just a matter of time before Tablets replace PC as the computing device of choice .However the truth is that Not everyone is making money by selling tablets .It’s not lost on
Google that Amazon’s $199 Kindle Fire was the only slate to grab a sizeable
chunk of the market beyond Apple’s iPad last year.
But the price at which Amazon kindle’s were sold barely covered the cost of manufacturing.. and the situation is unlikely to change soon
With Apple
winning the high-end tablet wars, Google and Amazon and now Microsoft are left to fight over the low end of the
market.
When a
Google-branded tablet finally launches — likely in the third quarter — it will
have to be heavily subsidized to carry a $150 price tag, analysts said.“It will
cost more to build than it will sell for, which means Google will pay a heavy
subsidy for its tablet,” said analyst Tony Berkman of ITG Research. “There is
no choice but to do that, if Google wants to compete.”
Yesterday,
reports out of China suggested Amazon also was working on next-generation Kindle Fire tablets and will continue to undersell the iPad at $200.
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