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  • iPad Market Dominance Causes Google to Shift Focus to Low-End Tablet Market


    According to Google’s CEO, Larry Page, the company is “quite focused” on reaching the lower end of the tablet market as Apple’s iPad continues to dominate the high-end price range.

    It was announced in its recent earnings call for the first quarter of 2012 (where a revenue of $10.65 billion and an income of $3.39 billion was reported). The search giant also announced a 2 for 1 stock split, which was intended to preserve the company’s “founder-led” approach. During a Q&A session in the quarterly results conference call, Page fielded a question regarding the company’s strategy for Android tablets :

    I think there's a number of Android tablets out there and obviously, we have strong competition there as well (referring to Apple’s iPad). Obviously there’s been a lot of success on some lower-priced tablets that run Android, maybe not the full Google version of Android. But we definitely believe there’s going to be a lot of success at the lower end of the market as well with lower-priced products that will be very significant. And it’s definitely an area we think is important and we’re quite focused on.
    It isn’t much of a surprise to see this being said after seeing the small amount of success the company has had in the market when compared to Apple in the $499 and above price range. Some references to the success of the lower-end products includes Samsung’s 7-inch Galaxy Tab 2 which sold for $250,Amazon’s Kindle Fire which came in at $199, and Barnes & Noble's $250 Nook tablet. All of the devices have seen moderate success when compared to the number of other high-end Android tablet offerings which have a much lower percentage of sales in the tablet market.

    The time continues to pass for Google to deliver on its promised “tablet of the highest quality,” which is what Chairman Eric Schmidt said four months ago, promising that such a device would be released within six months. As of right now, recent forecasts have continued to estimate Apple’s tablet market share remaining above 60% and continuing to retain control of the market through at least the year 2016.

    Source: Business Insider, Google
    This article was originally published in forum thread: iPad Market Dominance Causes Google to Shift Focus to Low-End Tablet Market started by Akshay Masand View original post
    Comments 12 Comments
    1. scroogelives's Avatar
      scroogelives -
      Even with google phones high quality is not what springs to mind, also I think people have beat google to this market too!! Just look at eBay and all the low budget tablets on there!
    1. ibivibiv's Avatar
      ibivibiv -
      You mean they weren't already the kings of low end junk tablets? Shenzehen tablets anyone?
    1. bigboyz's Avatar
      bigboyz -
      Good points! Don't most manufacturers have low end alternatives? All but Apple I believe..although feel free to correct me if I'm wrong. I understand not everyone can afford "high end" hardware and the "low end" market can definitely flourish from this fact. At the same time, don't act like the low end is nearly as good as the high end, then get surprised when articles come out pointing out that fact. low end = inferior quality in my book. I don't settle when it comes to electronics as I like to be on the forefront of technology..but not everyone can do that..low end market will benefit from this one..good luck!
    1. mustard05's Avatar
      mustard05 -
      I thought the iPad substitutes already ran the Google o/s. However, I really dont pay attention to other tablets becuase Im happy with my iPad. Anyway, Is this article really news.
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by bigboyz View Post
      Good points! Don't most manufacturers have low end alternatives? All but Apple I believe..although feel free to correct me if I'm wrong. I understand not everyone can afford "high end" hardware and the "low end" market can definitely flourish from this fact. At the same time, don't act like the low end is nearly as good as the high end, then get surprised when articles come out pointing out that fact. low end = inferior quality in my book. I don't settle when it comes to electronics as I like to be on the forefront of technology..but not everyone can do that..low end market will benefit from this one..good luck!
      Agreed. I would never substitute low end for high end when it comes to electronics, especially a phone, computer, or tablet. That's why I buy Apple
    1. KraXik's Avatar
      KraXik -
      Quote Originally Posted by bigboyz View Post
      Good points! Don't most manufacturers have low end alternatives? All but Apple I believe..although feel free to correct me if I'm wrong. I understand not everyone can afford "high end" hardware and the "low end" market can definitely flourish from this fact. At the same time, don't act like the low end is nearly as good as the high end, then get surprised when articles come out pointing out that fact. low end = inferior quality in my book. I don't settle when it comes to electronics as I like to be on the forefront of technology..but not everyone can do that..low end market will benefit from this one..good luck!
      Apple market their old versions as 'low end' like getting an iPad2 now instead of the new iPad.
    1. scroogelives's Avatar
      scroogelives -
      Quote Originally Posted by KraXik View Post
      Apple market their old versions as 'low end' like getting an iPad2 now instead of the new iPad.
      That's true, although my reason for getting iPad two instead of new iPad was I didn't need the high end screen or extra ram! So I was able to get a 3G version for a lower price! But when it comes to replacing my iPhone it will be the latest version!
    1. Painkiller006's Avatar
      Painkiller006 -
      Quote Originally Posted by steve-z17 View Post
      Agreed. I would never substitute low end for high end when it comes to electronics, especially a phone, computer, or tablet. That's why I buy Apple
      +1 although in my case i buy high end Android related things
    1. Channan's Avatar
      Channan -
      This is a good strategy IMO. The iPad owns the market so most developers choose to develop for the iPad and don't waste their time on Android tablets. Once Android tablets gain more market share and have more apps available, Google can release higher end tablets because apps will be comparable on both Android and the iPad.

      Right now, why would someone buy an Android tablet over an iPad when the iPad has so many more apps and therefore can do a lot more? That's why the TouchPad failed. Same price as the iPad, but far less capable.

      I prefer Android on my phone - I have a Galaxy Nexus - but I don't have much interest in Android tablets (yet).
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by Painkiller006 View Post
      +1 although in my case i buy high end Android related things
      There are some good high end Android products!
    1. TheDirtyDiddler's Avatar
      TheDirtyDiddler -
      I think this is one of the reasons they're doing well in the smartphone wars. There are tons of people who simply want cheap smartphones. For those people, Android is pretty much their only option. Apple will never offer junky enough products to appeal to their desired price range.
    1. tonymqqq's Avatar
      tonymqqq -

      According to Google’s CEO, Larry Page, the company is “quite focused” on reaching the lower end of the tablet market as Apple’s iPad continues to dominate the high-end price range.
      I think Apple should keep its high price of iPad!No one could surpasss by google android tablet pc.