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As The Tablet Margin Crunching Parade Marches On, Consumers Benefit From The Cheapest Prices Of The Best Products

Submitted by Reggie Middleton on 03/14/2011 11:10 -0400

If BoomBustBloggers remember, I recommended that tablet purchases be held off for a quarter or two while the vendors slug it out in margin and technology battle to the near death. Well, Apple came out with its sleek, sexy (although incremental) iPad 2, with lines forming around the block in major urban area stores.

A quick note before you go through these videos. As I searched YouTube for videos to post, Apple made it very easy by creating an iPad 2 channel, complete with a whole portfolio of fully produced videos. It created quite the impression and was easy to use in an attractive interface to show the features of the new product. Of course, this does absolutely nothing to make the iPad 2 a better product but it does go to show how Apple easily outmarkets its competition. What I find incredible is that creating a YouTube channel is not only child’s play, but is necessary in this age of social media, web video and viral marketing. Soooo… What the hell is wrong with everybody else? This is not Apple executing as a superior company, its a case of everybody conducting their marketing campaigns as dimwits thus allowing Apple to run away with the show. Case in point, the new Samsung tab is quite slick. It is thicker than the iPad 2, but also more capable from a tech perspective and through the Google software suites, slick as hell from the soft side as well. Of course, very few will know this because Samsung doesn’t seem to have a Tab channel on YouTube, but Apple does. The Apple iPad2 channel has over 2 million views already! This is naught but a wasted opportunity for all of its competitors and the implementation of such is simply common sense. No wonder why Apple has such a lead…

Here we have the Motorola Xoom, released a few weeks ago with beta software to steal mindshare from Apple’s iPad 2 release. It is a very fast machine, overclockable to 1.5 Ghz. For non-techies, that means fast as hell for a handheld device – the fastest to date.

Panasonic tablets with wireless media sharing via Panasonic flatscreens. Whoever is impressed by this, or Apple Airplay, or any similar tech should realize that that the vast majority of media sharing services are already available for free on most Windows, Apple, android and iOS UPnP™ and DLNA®-certified devices – which is most of them. Then again, nothing like reinventing the wheel and marketing it as a sportscar, right?. I must admit that Panasonic has extended this a little, though. I wrote in January, If You Need More Proof Of Apple’s Inability To Keep Up With Google’s Android & Over 100 Other Android Hardware Vendors…- explaining that the sheer technological weight and might of all of these companies innovating full steam, and in real time will rapidly overcome Apple. Well, check out the future of the TV remote control.

And it finally looks like RIM is going to release the Blackberry Playbook. I have lost faith in this company’s management in this new touchscreen era. They don’t seem to get it, not does their stuff come across as sexy or capable as the new crop of iOS or Honeycomb products, but you never know.

Samsung has admitted publicly that they will drop the pricing on their 10.1 inch tablet for they don’t feel it is competitive enough with the iPad 2. Many took that as meaning the Tab would be inferior to the iPad 2, but after looking at the video below it becomes apparent that Samsung’s goal is to absolutely outdo the iPad 2, not simply match it. Inadequate is definititely not an adhective to be used with this device.

An interesting comparison of a (now, remember admonitions about margin compression) $190 Nook Color (or $290 customized as is) vs the $400 iPad 1. Guess which is faster?

Keep in mind that most of these competing tablet products haven’t been released yet, and they are just the JV team – not the heavy hitters. In a few months you will see even harder hitting tech at a fraction of the current prices, and these prices are actually dropping in real time.

On a side note, the Microsoft Kinnect has sold over 10 million units, making it by far the fastest selling retail consumer electronics device in the history of the industry. It is being hacked to perform all types of functions from replacing a mouse to creating CGI characters, ala Smeigel (from Lord of the Rings) style. Remember, don’t count Microsoft out just yet.

As The Tablet Margin Crunching Parade Marches On, Consumers Benefit From The Cheapest Prices Of The Best Products

If BoomBustBloggers remember, I recommended that tablet purchases be
held off for a quarter or two while the vendors slug it out in margin
and technology battle to the near death. Well, Apple came out with its
sleek, sexy (although incremental) iPad 2, with lines forming around the
block in major urban area stores.

A quick note before you go through these videos. As I searched
YouTube for videos to post, Apple made it very easy by creating an iPad 2
channel, complete with a whole portfolio of fully produced videos. It
created quite the impression and was easy to use in an attractive
interface to show the features of the new product. Of course, this does
absolutely nothing to make the iPad 2 a better product but it does go to
show how Apple easily outmarkets its competition. What I find
incredible is that creating a YouTube channel is not only child’s play,
but is necessary in this age of social media, web video and viral
marketing. Soooo… What the hell is wrong with everybody else? This is
not Apple executing as a superior company, its a case of everybody
conducting their marketing campaigns as dimwits thus allowing Apple to
run away with the show. Case in point, the new Samsung tab is quite
slick. It is thicker than the iPad 2, but also more capable from a tech
perspective and through the Google software suites, slick as hell from
the soft side as well. Of course, very few will know this because
Samsung doesn’t seem to have a Tab channel on YouTube, but Apple does.
The Apple iPad2 channel has over 2 million views already! This is
naught but a wasted opportunity for all of its competitors and the
implementation of such is simply common sense. No wonder why Apple has
such a lead…

Here we have the Motorola Xoom, released a few weeks ago with beta
software to steal mindshare from Apple’s iPad 2 release. It is a very
fast machine, overclockable to 1.5 Ghz. For non-techies, that means fast
as hell for a handheld device – the fastest to date.

Panasonic tablets with wireless media sharing via Panasonic
flatscreens. Whoever is impressed by this, or Apple Airplay, or any
similar tech should realize that that the vast majority of media sharing
services are already available for free on most Windows, Apple, android
and iOS UPnP™ and DLNA®-certified devices – which is most of them. Then
again, nothing like reinventing the wheel and marketing it as a
sportscar, right?. I must admit that Panasonic has extended this a
little, though. I wrote in January, If You Need More Proof Of Apple’s Inability To Keep Up With Google’s Android & Over 100 Other Android Hardware Vendors…-
explaining that the sheer technological weight and might of all of
these companies innovating full steam, and in real time will rapidly
overcome Apple. Well, check out the future of the TV remote control.

And it finally looks like RIM is going to release the Blackberry
Playbook. I have lost faith in this company’s management in this new
touchscreen era. They don’t seem to get it, not does their stuff come
across as sexy or capable as the new crop of iOS or Honeycomb products,
but you never know.

Samsung has admitted publicly that they will drop the pricing on
their 10.1 inch tablet for they don’t feel it is competitive enough with
the iPad 2. Many took that as meaning the Tab would be inferior to the
iPad 2, but after looking at the video below it becomes apparent that
Samsung’s goal is to absolutely outdo the iPad 2, not simply match it.
Inadequate is definititely not an adhective to be used with this device.

An interesting comparison of a (now, remember admonitions about
margin compression) $190 Nook Color (or $290 customized as is) vs the
$400 iPad 1. Guess which is faster?

Keep in mind that most of these competing tablet products haven’t
been released yet, and they are just the JV team – not the heavy
hitters. In a few months you will see even harder hitting tech at a
fraction of the current prices, and these prices are actually dropping
in real time.

On a side note, the Microsoft Kinnect has sold over 10 million units,
making it by far the fastest selling retail consumer electronics device
in the history of the industry. It is being hacked to perform all types
of functions from replacing a mouse to creating CGI characters, ala
Smeigel (from Lord of the Rings) style. Remember, don’t count Microsoft
out just yet.

More on this topic:

Monetizing the Mobile Computing Race

We have a pretty firm idea of who is in the pole position as of now,
but that position is both risky and volatile, not to mention medium to
long term in nature – see Navigating BoomBustBlog Subscription Material To Find The Google Valuation Drilldown.

A more risk averse strategy is to go long on the component vendors
who supply those battling for pole position. Last week we released the
document File Icon Long candidate #1 – Hardware: The Mobile Computing Wars
to subscribers that outlined who our number one pick was after an
initial scan. This is not necessarily the absolute final say on the
matter since we have yet to perform a full forensic analysis, but the
company does look good in comparison to over 120 peers. Non-subscribers
should reference The Potential Equity Investments Most Likely To Prosper From the Google/Apple/Microsoft Mobile Computing Battle.

I am releasing the draft of the full shortlist of prospective long
candidates as of now (17 pages, 5 companies) to subscribers. Please be
aware that is a draft document and work in progress, but it is quite
informative nonetheless. See File Icon Mobile Computing Vendor Long List Note WIP. Those who wish to subscribe should click here.

Click here to read up on all of Reggie Middleton’s Mobile Computing War opinion, analysis, and research.

- advertisements -

Mon, 03/14/2011 - 22:16 | 1053279 moneymutt

Reggie - you are doing a better job marketing the Ipad alternatives than the companies are. Everyone I tell about the Nook color with Android get very interested, a lot of women want readers and don't want Ipad want something lighter, but would be happy to get all the extras an Android tablet would offer.

People don't know....I have been seeing some Xoom ads but they aren't super compelling...and besides, what marketing genius named a mobile device with a name that sounds like Zune.

Mon, 03/14/2011 - 17:40 | 1052175 williambanzai7

I shared a cross Pacific flight with one of the Samsung executives about a year ago. IMHO, they are morons in this space. That is my personal assessment. They are in catch up mode when they could have led the charge when the original iPhone came out.

In the margin wars Apple will slaughter the competition. Why, because they are ahead of the curve. Will they stay there forever. Unlikely. But right now they are way way ahead of the curve. Bells and whistles are not the be all and end all. It's the whole package that counts.

As we write, they are already busy with the curve after next curve.

Mon, 03/14/2011 - 14:01 | 1051098 tamboo

uh you have some duplicate paragraphs up there,
spel czech might be a good idea too.

boycott israel! that means motorola too!
http://www.inminds.co.uk/boycott-israel.html#list

i went to the apple store in los gatos a few
weeks ago. there was a palpable zombie like quality
to most of those in attendance. i spent a couple
minutes fooling with the crappy interface of an ipad 1
before the creepiness overwhelmed me and i had to go.

what the netbook guy said...

Mon, 03/14/2011 - 13:50 | 1051029 I am a Man I am...

iPad 2 looks AWESOME!! Thanks Reggie!!

Mon, 03/14/2011 - 13:44 | 1050997 Zina

Here in Brazil, I can buy an IPad 1 (not the IPad 2, wich is not being sold here yet) for the "modest" price of 1 thousand dollars (yep, that's 1000 bucks).

That's the cheapest price I can find an IPad 1 here.

Meanwhile, I can buy a good "netbook" for half that price, something around 500 dollars.

Why do you think I'm not planning to buy an IPad any time soon? My netbook solves all my problems...

Mon, 03/14/2011 - 13:42 | 1050983 sunkeye

another extraord present by rm

t/y for the skinny mister middleton

have to say never been an aapl guy

so these alts appreciated

Mon, 03/14/2011 - 13:26 | 1050882 Xkwisetly Paneful

But the greedy capitalist doesn't make good and service available to as many as possible they only exploit the worker class. I read it daily at ZH.

I am still holding out as your other piece suggested.

Good article.

Mon, 03/14/2011 - 13:18 | 1050861 locinvestor

Some problems with ISP's and cell companies:

Why the ultra high taxes?

What does it mean when a major cell carrier charges customers to get back the money the govt. takes in corporate tax and they call it a "redistribution tax"?

Mon, 03/14/2011 - 12:58 | 1050759 LowProfile

Great analysis as usual Reggie.

To be honest though, I don't ever see myself needing one of these things.

Makes me wonder about those who do...

As The Tablet Margin Crunching Parade Marches On, Consumers Benefit From The Cheapest Prices Of The Best Products

As The Tablet Margin Crunching Parade Marches On, Consumers Benefit From The Cheapest Prices Of The Best Products

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