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I don't think the issues for Android tablets are easily fixed and go deeper than this article. There are two major problems I see: 1. Tablets, for now, are per
by technoslut 14y ago
I don't think the issues for Android tablets are easily fixed and go deeper than this article. There are two major problems I see:
1. Tablets, for now, are perceived as a third device which means that it's mostly for people who can afford it. Since Apple absolutely dominates high-end purchases it is far more likely that the iPad will be successful. It's a big problem for Android in that the app ecosystem for iPad will continue to mature while Android remains stagnant.
2. Price. The iPad doesn't have the high-priced subsidies like the iPhone. It also seems as if the Apple is willing to sacrifice on margins with the iPad to make it difficult for Android tablets to have lower price points. When they do, there is a visible lack of build quality.
I don't think MS is much of a concern at this point since it is vaporware and much of the Surface press conference had more to do with legacy support of the PC than anything else.
- mikeryan 14y agoApple is making about a 50% margin on iPads. They're not sacrificing margin for market share based on price, I'm pretty sure Apple is pretty opposed to this sort of strategy. The advantage they have for pricing is in their manufacturing and supply chain management. They're actually able to produce better quality hardware for cheaper then their competitors in the Android space (and for that matter the Windows 8 space as well). http://www.techspot.com/news/47738-apples-profit-margin-slightly-slimmer-on-ipad-3-estimates-reveal.html http://www.techspot.com/news/47738-apples-profit-margin-slig...
- technoslut 14y agoI don't think it's anywhere close to that considering that is just the cost for the bill of materials and it doesn't take into account the cost of assembly, shipping, marketing and research & development.
- mikeryan 14y agoLast I heard the actual manufacturing cost was about $10 [1] marketing and R&D are pretty much fixed costs and don't really work well in accounting for per-unit margins. At the end of the day there's still no indication that Apple is sacrificing margin for market share. [1] http://www.appleinsider.com/articles/12/03/16/high_cost_of_new_ipad_components_drive_down_profit_margins.html http://www.appleinsider.com/articles/12/03/16/high_cost_of_n...
- deleted 14y ago[deleted]
- maxerickson 14y agoAndroid tablets don't have to be competitive with iPad to be a viable market. I mean, a game company with $50 million in iPad revenues isn't going to turn their nose up at $5 million of Android revenue, especially if they figure the ROI for porting is fairly high.
- ja27 14y agoYeah but an indie developer with $100k in revenue will turn their nose up at $10k of Android revenue.
- gurkendoktor 14y agoThis is starting to normalize now, but I think it's important to point out how many great apps and games are made by indie developers or tiny shops. Lots of one-hit wonders in there.
- marknutter 14y agoFor huge swathes of the population the iPad has become their main device.