The e-reader and tablet market will be heating up with increased competition on the pricing front in 2012 with manufacturers dropping the prices of their offerings. There are a number of factors that may attribute to the marked decline in prices–not being able to sell many tablets and compete against Apple’s iPad with iPad-like pricing should be top on the list–such as a more competitive e-reader market as well as steep price competition from Amazon’s latest entry, the Amazon Kindle Fire tablet.
According to DigiTimes analyst James Wang, the e-reader market will grow in 2012, which would also have the side effect of helping to lower tablet prices. Here’s how it will work:
Rather than trying to introduce new features, e-reader makers such as Amazon, Barnes & Noble, Kobo and others will have to compete on pricing. With Barnes & Noble and Kobo already showing that they cannot undercut Amazon on price, tablet-makers will be forced to lower their prices to avoid losing market share due to high price drops in the e-reader hardware market.
So how much will prices drop in the tablet market? DigiTimes is speculating that 10-inch tablets will decline to about $300 in price whereas today they start around $400-$500. Additionally, 7-inch tablet models will come in at $200-$250 whereas today’s HTC Flyer debuted at $500 and the Amazon Kindle Fire tablet retails for $200.
To remain competitive in the market and try to undercut its competitor, late-comer to the market Amazon will lower its Kindle Fire tablet pricing to about $150 and its Kindle e-reader pricing to start at a $50 entry point. It looks like the Kindle Fire isn’t just this year’s hot ticket item for gadget-lovers, but will also set the tablet market on fire.
If you’re not buying or gifting a tablet or e-reader this year, next year will promise better pricing for both hot gadget items if DigiTimes is correct in its predictions and research.
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