Companies Must Reduce Tablet Prices to Compete with iPad 2

Posted on Jul 6 2011 - 1:20pm by Robert

According to a new study from technology research firm YouGov, companies need to rethink their pricing strategy in order to successfully compete with Apple’s iPad 2. The iPad 2, which is cheaper than tablets released by its rivals, got a high score in consumer consideration, awareness and expectation levels, said YouGov.

Brands like HTC, who has enjoyed success in the smartphone market these past few weeks, are making customers pay too much for their Flyer tablet and could fail unless the company changes its pricing strategy. While tablets have differences in specs, the study said that it is still too much compared to the cheapest iPad 2 model. Four brands has been mentioned to have a higher price than the iPad 2: HTC’s Flyer, Motorola’s Xoom, LG’s Optimus and Acer’s Iconia.

In a previous research, YouGov said that prices of tablets should start at £250, which is the ideal price point for the product’s success.

YouGov’s Technology and Telecoms Consulting Associate Director Russell Feldman, said: “Apple’s iPad leads the way in the tablet market and not just in terms of sales success but also in consumer expectation, awareness and consideration levels. So in order to successfully compete, brands need to seriously re-think price. Retailers also need to convince these manufacturers that outpricing the brand leader will not help their cause.”

The study reveals that out of the 3306 respondents, 77 percent are considering to buy an iPad 2 with a further 62 percent are already expecting to have one. About 11 percent of respondents are expecting to have a Samsung Galaxy Tab, which is Apple’s closest rival. About 1300 of the respondents are tablet owners.

Feldman added: “Google also need to change their strategy in the tablet market. Google’s success in the smartphone market is in part due to the OS being available to both low and high end manufacturers meaning it is accessible to all. Furthermore, high end models such as the HTC Sensation and Samsung’s Galaxy S2 are not priced as high as the iPhone meaning Google has been able to home in on Apple’s superiority in the smartphone market and subsequently overtaken them.”

The TabletTrack study of YouGov tracks tablet usage, attitude and satisfaction. Its next wave begins in August and reports will come out in September.

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