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"Apple simply cannot compete in these markets: its business model is based on charging a premium price for a premium product." Apple purchases in large volume

"Apple simply cannot compete in these markets: its business model is based on charging a premium price for a premium product." Apple purchases in large volume which allows it to have lower component pricing than almost all other manufacturers. That's why you haven't seen an Android based iPod touch-like device. That's why you haven't seen anybody do a tablet comparable to iPad in terms of hardware at the $499 pice point. Apple's iPod is an integrated platform--arguably with less hardware variety--and it has 76% market share. Why hasn't this platform ceded control to Android yet, or "open" options? It isn't for lack of variety or other choices. Putting aside superior user interface, nobody can do a cheaper iPod. Let's see it. If we're talking about a market for unlocked mobile, sub-$500 devices, then Apple hasn't been beaten in the last decade.

ZeroGravitas 16y ago
You haven't seen those devices because Apple's brand-name competitors are choosing to enter the high value markets first. Anything with a recurring data contract brings in far more money. And Google itself would rather make the devices and the contracts cheaper, so that the users can spend more time online using Google products. They'd rather replace a kids iPod (inc. Touch) with an always net-enabled "phone" if possible. But away from the headlines there's been generic, wifi-only Tegra2 tablets on the market for a couple of months now at half the iPad price. Not only does the Tegra2 beat iPad hardware, it's in line with the rumours for iPad 2 hardware. So the magical Apple hardware efficiency and price competitiveness doesn't really add up. Note these generic tablets have plastic bodies, screens with poor viewing angles and non-tablet Android often without market access or official Tegra2-optimised Flash out of the box, so they're a tinkerer's delight rather than an iPad killer right now, but that's a separate issue from the power and cost of the hardware.

ZeroGravitas 16y ago

You haven't seen those devices because Apple's brand-name competitors are choosing to enter the high value markets first. Anything with a recurring data contract brings in far more money. And Google itself would rather make the devices and the contracts cheaper, so that the users can spend more time online using Google products. They'd rather replace a kids iPod (inc. Touch) with an always net-enabled "phone" if possible. But away from the headlines there's been generic, wifi-only Tegra2 tablets on the market for a couple of months now at half the iPad price. Not only does the Tegra2 beat iPad hardware, it's in line with the rumours for iPad 2 hardware. So the magical Apple hardware efficiency and price competitiveness doesn't really add up. Note these generic tablets have plastic bodies, screens with poor viewing angles and non-tablet Android often without market access or official Tegra2-optimised Flash out of the box, so they're a tinkerer's delight rather than an iPad killer right now, but that's a separate issue from the power and cost of the hardware.