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Tuesday, December 11, 2007

« Dell and Toshiba Tablet PC News and PicsMain  | Dell XT Tablet PC Product Page Now Posted »

Thoughts on Dell's Latitude XT Tablet PC Pricing

- Rob Bushway

Robeditorial We posted about the launch of Dell's Latitude XT Tablet PC last night. I've been reading comments here and elsewhere about the launch and I'm not surprised at all with what everyone is saying: heaping praise on the weight and capacitive touch, but unanimously slamming it for a starting price being $800 - $1000 over its competitors. Capacitive touch is a nice feature, but it is not worth that kind of premium.

I have to be honest here and say I was quite surprised when Dell told me the starting price was $2499. I thought I misheard, hoping they had said $1499. After confirming the price, I told myself "this is not going to go over well at all, and it will be the focal point for an otherwise impressive Tablet PC."

I believe Dell is banking on volume orders from their vertically targeted market for the Latitude XT, which will definitely see the price drop significantly. For the rest of us, though, I doubt we'll see a price drop for several months - but the price will drop. It has to.

Meanwhile, Lenovo and Toshiba must be feeling good right now. Suddenly, their offerings look like real bargains, and Toshiba couldn't have come out looking better with their launch yesterday. HP's 2710p, minus the capacitive touch, is on par with a lot of the features of Latitude XT, and it is looking like a real steal. If Dell really wants to compete in this market, they need to listen more closely to what consumers are saying: $2499 just ain't gonna cut it. We are tired of paying premium pricing, and we had all hoped that Dell would set themselves apart differently here. To say we are disappointed is an understatement.

I'm looking forward to getting my hands on a review unit, and will definitely be bringing a fair and balanced in-depth video review, as well a comparison to its competitors.



Tuesday, December 11, 2007 7:42:44 AM (Mountain Standard Time, UTC-07:00)
They're either doing this so that they could offer their usual "discounts/deals" to volume orders first, then to everyone else,
or they think this is a worthy competitor to another overpriced machine R400.
The former, it's just a bad marketing strategy. Lenovo did a much better job of selling a lot of x61t's even with their design flaws (As soon as I saw it, and saw the price, I wanted it, even knowing this whole "sale" thing is a marketing garbage. Good job Lenovo, and fix my bezel).
The latter, although for that price, it's not too hard to argue that Dell has the upper hand compared to R400, that just isn't the right target. Why would anyone spend that much time and create that much hype just to go for the narrowest target possible?

Unless I'm too simple to understand their complex marketing strategy, I believe they're on their way to help other companies sell a lot of tablet pc's. Good job, Dell :D
Dave S.
Tuesday, December 11, 2007 7:59:20 AM (Mountain Standard Time, UTC-07:00)
Are there comparable Dell models that would allow one to calculate the "Tablet premium"? What is the Tablet premium for other manufacturers?

How much of the Tablet premium is likely to be manufacturing costs that will persist in the long run, and how much is due to other factors such as smaller production runs or risk premium?
Tuesday, December 11, 2007 8:10:03 AM (Mountain Standard Time, UTC-07:00)
Yes, that's expensive compared to other convertible tablet PC offerings from manufacturers with more presence in this segment of the market. It's been covered.

I understand the tactic. If we all make a big stink about the MSRP, especially those of us with visible pulpits in the community, then maybe we can pressure Dell into depressing the price immediately rather than gradually. The response from the community over Dell's MSRP deserves much more attention than the MSRP itself.

* If you don't like the price then make it clear by not buying one. I PROMISE THIS WILL WORK.
* Slates are this expensive and have no keyboards or hinges or any of that nonsense. They've been this expensive for a while too. Thanks for all of your help making sure manufacturer's know how we feel about this REAL problem and for helping to do something about it.
* Private parties should NEVER pay Dell's MSRP. Given that GottaBeMobile is about tablet PCs and UMPCS, and Dell is a no-show in these categories, I can't fault you for your lack of experience in ordering from them. Prepare to play the coupon code game. If you have to order through the purchasing department of a business then just prepare to pay.
* The guys over at jkOnTheRun lost many loyal readers and, perhaps more valuable, a healthy slice of their hard-earned credibility when they led the whining chorus over Apple's decision to lower (yes, those jerks at Apple made something CHEAPER) the price of the iPhone. While the guys at jk got a fancy little store credit for their efforts, GottaBeMobile came out the big winner as the obvious go-to outlet for news, information, and opinion for our community. Don't squander all of that good will for Dell's sake.
GottaBeKidding
Tuesday, December 11, 2007 8:16:03 AM (Mountain Standard Time, UTC-07:00)
I'm crushed. After suffering through months of waiting, getting really excited...they come out with something that is underpowered and overpriced. What a waste.
Ryan
Tuesday, December 11, 2007 8:48:38 AM (Mountain Standard Time, UTC-07:00)
The thing is that they have multi-touch. It's a small, solid, well spec'd laptop with a feature that doesn't exist in ANY OTHER LAPTOPS. I think the price makes sense.

People keep complaining that capacitive touch isn't worth $1000, but I'm sure it's the multi-touch that really ups the price.

And the thing is, when Apple announces the same damn thing for the same damn price in January, everyone is going to praise them, but omagosh Dell made something expensive and suddenly it's some massive mistake.

It's new technology on top of what appears to be a solid device, why is that such an infeasible price? Weren't the Toshiba R400 tablet or whatever with the Microsoft Sideshow display $3,000 base? Why isn't anyone complaining about that.


I don't think Dell has screwed up like everyone seems to be saying. I wish they released a cheap $1000 tablet to replace the Gateway 12" tablet that is being discontinued, but so what... it's too expensive for me I won't buy it. Any competition is good competition, and like you said the price will come down, probably quickly, putting pressure on everyone else.
Brothernod
Tuesday, December 11, 2007 8:57:56 AM (Mountain Standard Time, UTC-07:00)
GottaBeKidding: Okay, I'll bite - You gotta be kidding on some of this. Slates are just as tough to engineer because they are typically slimmer and lighter, and must account for the greater risk of potential interference between the digitizer and the other components, not to mention that the slate makers are smaller companies with lower sales volume.

As for price whining, the price point is a disappointment on the market level. It's not personal. I avoid paying MSRP as much as the next geek (I paid $200 below retail for my Toshiba R25), but laying out a price that much higher than the competition is a huge deterrent to potential buyers. And really, who wants to coupon their way to a $800 price drop when a comparable (and arguably superior) product is already available at that price?

And what version of jkOnTheRun are you reading? Not only did they not "lead the whining" but Kevin Tofel made a point of explaining that he was not upset by the iPhone price cut and that it is par for the course for early adopters.

And let's not forget, the Dell has capacitive touch but not multi-touch (yet). That price premium is for a feature that buyers can't use yet.
Tuesday, December 11, 2007 9:33:14 AM (Mountain Standard Time, UTC-07:00)
@Brothernod

This version does not have multi-touch, only single touch.
Ryan
Tuesday, December 11, 2007 10:17:13 AM (Mountain Standard Time, UTC-07:00)
I'm just curious to see how the N-Trig digitizer works. I think it has a real possibility of being a huge improvement over passive touch systems, and doing a better job of handling input than the current active/passive models. I'll withhold judgment on the price until then.
Sharon
Tuesday, December 11, 2007 11:13:02 AM (Mountain Standard Time, UTC-07:00)
I think it really shows how consumers think, considering the all the positive aspects of this tablet the ONLY thing anyone is talking about (and rightfully so) is the price. The direct2dell.com entry already has 34 comments, each one lamenting over the price and not even mentioning the positives of the tablet.
Antimatter
Tuesday, December 11, 2007 1:33:14 PM (Mountain Standard Time, UTC-07:00)
Um, first, I think when they say not multitouch, they mean it doesn't have the multitouch capability demonstrated a while back on some youtube video, where the digitizer would actually recognize multiple touches on the screen at the same time. The XT will have a multitouch as we know today, where you can use your hand or the pen.

As far as the price, personally, I don't think it's worth it for the specs. the ulv processor and 4200rpm drive are show stoppers. Anyone that's spent some serious time with Vista, will know that it loves to hit the hard drive a lot with things like the indexing service and system restore. For a light user, would probably work, but don't think you really get your money's worth, given the specs I've seen.
Also, I think to some extent it makes sense. They're targeting govt, edu, etc. They will be more willing to pay the price and probably be more willing to endure some problems and delays (given the delays so far, I would expect some bumps along the road to come). End users will likely be less forgiving, as was the case I think with Lenovo and all the x60 & x61 issues, and demand compensation, refunds, etc if problems arise. This will give dell the opportunity to get production up to speed, cause they'll likely be shipping a high volume of the same configurations to the first customers.
I expect once it's out there, some bugs have been worked out and production is up to speed, they'll lower the price to attract additional customers, who will be more likely to customize their builds when they order.
Tuesday, December 11, 2007 2:09:07 PM (Mountain Standard Time, UTC-07:00)
I was under the impression that the hardware can handle multiple finger touch, but the software isn't set up to do anything with it yet. The Dell product page says: "it is also the forerunner to emerging multi-touch capabilities that allow the use of more than one finger for tasks such as zoom and repositioning a picture, to name a few."

I guess that doesn't really clear it up whether it supports multi touch or not, although it implies it can.
Tuesday, December 11, 2007 2:16:30 PM (Mountain Standard Time, UTC-07:00)
I'm not sure you can consider comparing Dell's offering with Lenovo's an "apples to apples" sort of deal. That is, of what I know from extensive experience with Lenovo's Thinkpad X41, the Dell would have to be in a whole different league in nearly every category. I dunno how the X61 compares to its older sibling, but the X41 was truly a beast on performance. And with the whole raison d'être for a 'vert tablet being the keyboard, the X41 was a total letdown as well.

Product photos would indicate that, at a minimum, Dell got the keyboard & pointer options right and I'm hopeful that the performance is far superior as well.

But then I still say that the tradeoffs for a 'vert tablet are too steep and you're far better off going with either a notebook PC or a dedicated slate tablet - which ever suits your needs. Convertible tablets all too often simply become overly-complicated, overpriced, and under-performing notebook wannabes. Get off the fence & determine your real needs before you plunk down the nowhere-near-trivial coin on any one of these machines.
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