Average Tablet Price Has Droped Down to $386

News
By Douglas Perry
published

Those predictions about cheaper tablets in 2012 have apparently not been empty promises.

According to IMS Research, the average tablet in the market dropped by 21 percent in price and landed at $386 in the first quarter of the year. Of course, much of this circumstance can be attributed to Apple's decision to keep offering the iPad 2 next to the new retina iPad, and dropping the price from $499 to $399.

However, it seems that low-end tablets have also come down in price and that the previous attractive $200 price point has moved down as well. IMS analyst Gerry Xu said that technology alone does not allow tablet vendors to differentiate themselves from competitors, which means that a low price is the "major factor" to attract customers. "To balance performance and profitability with a low price remains challenging for most tablet vendors," Xu said.

2012 may bring some change to the market, as Amazon is preparing its second generation Kindle and Google is readying its own tablet for launch. This means more technology for the money will force tablet vendors to upgrade their designs while keeping tablet prices where they are or dropping them even further.

Douglas Perry
19 Comments Comment from the forums
  • drwho1
    This gadgets are way overpriced.
    I wouldn't even pay $3.86 for one of them, neither I wouldn't even consider them for FREE.
    Reply
  • dimar
    Still waiting for 12" 16:10 tablet... preferably Android.
    Reply
  • NuclearShadow
    Just wait until Windows 8 tablets hit the market we should expect this to cause price competition to get even more intense. It will be strange because companies like Samsung who already make Android tablets will be making Windows OS tablets too, so their own creations will compete with themselves.

    I think it is time to label this as a tablet war because **** is about to get serious.
    Reply
  • lunyone
    I don't think Windows 8 tablets are going to compete much in the lower end. I'm thinking they will be overpriced (by what I've read) and won't sell as much as they think. I don't have a desire to own a tablet at this point, since my laptop does what I need for now, but that might change later.
    Reply
  • You know, you're missing a 'P' in the title of this article. I don't know how the price could have "droped".
    Reply
  • Zingam_Duo
    lunyoneI don't think Windows 8 tablets are going to compete much in the lower end. I'm thinking they will be overpriced (by what I've read) and won't sell as much as they think. I don't have a desire to own a tablet at this point, since my laptop does what I need for now, but that might change later.
    Actually a tablet is hardly any replacement for a laptop unless you do some very light work and you get a Transfomer tablet.

    You could eventually think about your tablet as a device combining ebook, gps (if it works and has LTE), an internet tablet (yeah, those devices from years ago that were supposed to be internet browsing devices) and oversized MP3/4 player. It could actually be an useful device while you travel but it might take longer to get to the point. And also mobile internet should become more available and cheaper internationally.
    Reply
  • jaksun5
    Not many people buying a > $600 Apple tablet know why they are buying it. As a dealer you can be sure that these people come in buying the 'experience', not a tablet to a. read books, b. browse online, c. whatever else you want to do with it.

    Now ask people what they want to to with it, and when you then respond to them 'you can have an Android for half the price that does all that' they look at you sideways, like you're trying to rip them off. They try to read you like your some sort of snake oil salesman for suggesting they can do these things for half the price, as though it's impossible.

    Apple sells the sizzle, not the sausage, as long as that's the case and people aren't as educated (or don't have the need for some niche app that adds real value to the iPad and can't wait for the Android version) then you'll find many people still buying apple at twice the price of Andorid.
    Reply
  • doive1231
    Take out the iPad from this survey and the average tablet price has dropped to $38.60.
    Reply
  • damianrobertjones
    Zingam_DuoActually a tablet is hardly any replacement for a laptop unless you do some very light work and you get a Transfomer tablet.
    Samsung Series 7 slate - Core i5
    Asus EP121 - Core i5
    HP 2760p - Core i7/i5
    etc and etc
    Reply
  • tramit
    jaksun5Not many people buying a > $600 Apple tablet know why they are buying it. As a dealer you can be sure that these people come in buying the 'experience', not a tablet to a. read books, b. browse online, c. whatever else you want to do with it.Now ask people what they want to to with it, and when you then respond to them 'you can have an Android for half the price that does all that' they look at you sideways, like you're trying to rip them off. They try to read you like your some sort of snake oil salesman for suggesting they can do these things for half the price, as though it's impossible.Apple sells the sizzle, not the sausage, as long as that's the case and people aren't as educated (or don't have the need for some niche app that adds real value to the iPad and can't wait for the Android version) then you'll find many people still buying apple at twice the price of Andorid.
    Thats exactly why I went with an iPad. The niche app that I was waiting for is still not on Android 3 years later... I use Notes Plus that helps me audio record my lectures and syncs the specific audio recording to the slide I was on when I was recording. That feature alone is what makes this app so amazing. There are alot of annotation apps in both markets but they don't suit my needs. My first year in medical school is where that app saved me alot of time especially when you are sitting at school from 9am-10pm.

    I continually look in the Android app market since I use a GNex as my phone but still nothing even years later. Resale value of the iPad is much nicer then an Android tablet also if you decide to sale it down the road.
    Reply