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.
This article may contain affiliate links. Click here for more details.