Market Analyst Suggests Android Tablet Makers Should Follow Amazon's Example

[dgstorm]

Richard Windsor, technology securities analyst at Nomura International, recently made the bold assertion that the various Android Tablet makers should follow Amazon's lead by lowering their prices on tablets and offering Amazon content, or they should get out of the market. Windsor suggested that the other tablet makers refusing to lower their prices are "living in denial." He further added, "The main effect of the potential sea change triggered by Amazon could be a change in roadmap to cheaper products or possible tie-ups with Amazon. With the advent of the Amazon Kindle Fire, many of the other tablet makers are in a bit of a quandary as they are left with expensive tablets without a comprehensive content offering."

Windsor also said that Amazon will most likely dominate the low-end of the tablet market with the Kindle Fire, while Apple will continue to control the high-end with the iPad2. Windsor did indicate, however, that Google's new Android 4.0 OS Ice Cream Sandwich, could help tablet makers compete better with the iPad. Google is expected to make an official announcement about ICS at a press conference in San Diego on October 11th.

Source: FireForum.net via BGR

 

[Trusstopher]

Market Analyst suggests it? I figured selling 2,000 units per hour was a pretty big "suggestion."

 

[OneTenderRebel]

Look Android tablets are really nice pieces of hardware but people are not willing to pay for them, it has been clearly shown. Not a single Android tablet can be labeled a success as far as overall sales are concerned. Sure to us here in the forums we love the specs and honeycomb and the fact they are an alternative to the iPad but look what happened when HP decided to cash in their chips and sell the touchpad for 99 and 199, they sold faster than companies could handle the sales. Unless it has the name Apple on, for right or for wrong reasons, no one is willing to pay what the current crop of Android manufacturers are asking for their tabs. Just my opinion....

 

[czerdrill]

Yep for whatever reason, Apple will always have sales (I think its quality, others will think its Kool-Aid) but Android OEMs need to compete on price and not just specs if they want any kind of success in the tablet market. While it's true that no individual Android tablet will probably ever outsell the iPad, price really is the only thing thats keeping them from being DOA like most have been so far.

 

[johnomaz]

Pricepoint is a big thing, but also, I don't plan on buying a new tablet within a couple years of buying one. I'm going to want the best hardware. And though 7" is appealing to me, I'd probably go with a 10" tablet. That in itself will drive up the price. But ya, the $700+ tablets, they have a lot to learn.

 

[GrillMouster]

This analyst suggested that the various tablet manufacturers lower their prices and strike a deal with Amazon to offer its content. However, what the tablet manufacturers will hear is, "create your own content ecosystem like Amazon". Some, like Samsung, already have really small half-baked media services that largely go unnoticed and unused. If they try to push their services at the exclusion of others, they will lose. Amazon can get away with it because it has a pretty comprehensive catalog of offerings and it's a known and trusted marketplace with legs.

 

[czerdrill]

This analyst suggested that the various tablet manufacturers lower their prices and strike a deal with Amazon to offer its content. However, what the tablet manufacturers will hear is, "create your own content ecosystem like Amazon". Some, like Samsung, already have really small half-baked media services that largely go unnoticed and unused. If they try to push their services at the exclusion of others, they will lose. Amazon can get away with it because it has a pretty comprehensive catalog of offerings and it's a known and trusted marketplace with legs.

Agreed, trying to become their own Android subsystem won't work, and that would definitely be a fail. I still think price is the only thing keeping people away from the Android tablets. They would sell a hell of a lot more if it wasn't $700

 

[OneTenderRebel]

This analyst suggested that the various tablet manufacturers lower their prices and strike a deal with Amazon to offer its content. However, what the tablet manufacturers will hear is, "create your own content ecosystem like Amazon". Some, like Samsung, already have really small half-baked media services that largely go unnoticed and unused. If they try to push their services at the exclusion of others, they will lose. Amazon can get away with it because it has a pretty comprehensive catalog of offerings and it's a known and trusted marketplace with legs.

Agreed, people like buying what they know and have heard of. Amazon has a very well known and respected name so it almost sells itself, just like the iPad. I mean it's not a coincidence this thing has incredible pre-sales so far. Price and recognition are extremely important, much more so than the specs, IMO.

 

[soulpatch]

I would love a tablet but am not willing ot pay the 700 for one. I tried to get an HP but couldn't when it was so cheap. I will try out the Fire but I have a feeling I will be unimpressed till I see one rooted and romed to have full fledge honeycomb or ice cream on it...

 

[OneTenderRebel]

I would love a tablet but am not willing ot pay the 700 for one. I tried to get an HP but couldn't when it was so cheap. I will try out the Fire but I have a feeling I will be unimpressed till I see one rooted and romed to have full fledge honeycomb or ice cream on it...

And it sounds like Amazon is going to leave them root-friendly, so it may not be long before that happens.

 

[soulpatch]

And it sounds like Amazon is going to leave them root-friendly, so it may not be long before that happens.

Exactly. While I am one to think about what all I want it to I have to be realistic that I will use it to play games, surf the net, watch some videos, and occassionally view/edit some word type documents... Camera means nothing to me on a tablet but the internals and screen do. I woudl prefer a 10inch tablet but could settle for a 7 I guess though 10 inch woudl be ideal

 

[WildcatRudy]

Exactly. While I am one to think about what all I want it to I have to be realistic that I will use it to play games, surf the net, watch some videos, and occassionally view/edit some word type documents... Camera means nothing to me on a tablet but the internals and screen do. I woudl prefer a 10inch tablet but could settle for a 7 I guess though 10 inch woudl be ideal

I am considering getting a used Nook Color, rooting it and putting on cyanogenmod, just to have something cheap to surf around and play games with. They're plentiful on the local Craigslist, often around $100 or even less.

I don't agree all the Android tablets should specifically jump on the Amazon bandwagon, but they do need to do something to provide more of a total experience to the end user for the price. A good suite of well-known content providers (even if it does have to be Amazon), ready to go out of the box, would help, I agree. I don't drink the apple Kool-Aid, but they do tie their tablets into itunes. I feel the HP tablet was a colossal failure due to both a lack of content and apps, along with the high price.

Tablets could even be geared toward enterprise usage with the right suite of apps and content; the apple tablets are still considered "lifestyle toys" by many. That is why Blackberry still hangs on, despite falling market share--their products are still geared toward (and accepted by) the corporate world. The company that comes up with a corporate/enterprise-geared Android tablet or phone will have the proverbial "killer app" on hand. I know a few who won't jump to apple or Android for that reason (despite my telling them otherwise ).

BTW, I should be an analyst, and get paid for restating the blindingly obvious.