Analyst: Windows 8 Tablet Pricing Is Too High
October 11, 2012 9:08 AM
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Are Windows 8 tablets an expensive bag of fail?
We all know that Microsoft, and its partners are going to be pushing Windows 8 heavily for tablets. The
Windows 8 tablets we've seen so far
have some interesting features, but are also saddled with expensive prices. Bob O'Donnell, an analyst from the research firm IDC, thinks that Windows 8 tablets are simply too expensive.
O'Donnell doesn't believe the traditional PC pricing on Windows 8 tablets bodes well for the new hybrid devices. The Windows 8 tablets we've seen so far from Acer and Lenovo that are able to convert between tablet and laptop use come in at a price between $499 and $1099 depending on options.
Lenovo's IdeaPad Yoga 13 starts at $1,099
"The problem is these things are priced way too high. Look at the history of tablet products priced above the iPad. Not pretty," O'Donnell told
Computer manufacturers are hoping that consumers will see the value in Windows 8 tablets that are promising better productivity thanks to keyboards and the Windows operating system that tablets such as the iPad can't offer.
The analyst believes that the
Microsoft Surface tablet
won't undercut the pricing of Apple’s iPad. O'Donnell says that he expects the RT version of the Surface tablet to sell for $599 and the Intel-powered version to sell for $999.
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RE: bad time
10/11/2012 11:13:58 AM
I remember when analysts said the iPad was going to be a flop because no one would pay $499 for what was essentially a large iPhone without the phone, and surveys showed that the sweet spot was $299 or something.
Most analysts fail.
RE: bad time
10/11/2012 12:42:48 PM
I think this is a Major Fail on the part of the Hardware manufacturers being unable to produce or accept a lower profit margin on tablets like they do on PC's. Sure its razor thin on PC's they dont need to cut that deep but they cant expect Apple profit margins when they have competition from other manufacturers.
Apples iPad can only be bought from Apple this allows them to hold their price point to a degree. They don't have hardware that competes with themselves if you want into their eco system.
Lenovo makes a Windows or Android tablet and they are not the only game in town doing this every other hardware company is going to have a competing product.
Google and Microsoft must make their own tablets because both need to produce a razor thin profit margin or even a loss. Its just like selling game consoles to build up an eco system that will attract developers of apps/games for that eco system. When the eco system has enough hardware sold then you will attract the developers to produce content for it.
If lenovo is to do well they need to market this as a Ultrabook first that you dont need to purchase a tablet because it can act like one. Marketing it as a tablet with a keyboard will fail.
RE: bad time
10/11/2012 5:12:28 PM
I think that it's difficult to compare tablets to PCs when it comes to pricing.
I know that people hate bloatware, but that is how PC and Laptop manufacturers make their money.
However, as tablets are competing with the iPad, I don't think that tablet consumers will tolerate all the rubbish that you will find on most laptops, so what seem like high prices compared what you might expect could be here to stay for a while.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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