Tuesday, February 22, 2011

Why Apple’s Competitors Can’t Compete With the iPad’s $500 Price Point

Now that the Motorola Xoom is announced and will soon hit the shelves at retail outlets we will see if people are willing to pay a price premium for an Android tablet. Our guess is they won’t. So why doesn’t Motorola undercut Apple, the current tablet sales trendsetter?
Most observers are saying that the $500 iPad has the perfect price point and if the upstart wants to win this fight or just compete they need to at least meet Apple’s price and probably beat it. A really good $399 Android Tablet would likely sell well. Case in point: the Samsung Galaxy Tab is selling well and right now buyers can snag one at T-Mobile with a two-year contract for $249.99 or $499.99 without the weight of the contract. Other carriers have decent prices too on Samsung’s Tab.

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