The new post PC device......iPad 2 sets tough standards for competitors
Recently, when Steve Jobs unveiled the iPad 2, competitors were in for a rude shock and shares of almost all the major competitors went down.
The new iPad has front and back cameras, more memory, faster processor, and all this comes at the same price as the older version of the notable device.
As some of the competitors were still entering the tablet market, Apple gave them a severe blow by introducing the next version of its hugely popular iPad.
Price in Apple’s favor
While iPad 2 has a dual core processor and is designed by in house designers, the price of the iconic device remains the same as that of the older version.
The iPad 2 is being sold at prices starting from $499, while Motorola’s Xoom tablet starts at $599 and goes up to $799. Such competitive pricing will apparently be a major hurdle for the competitors to overcome.
Apple also has the option of selling the device directly through the net or through the network of Apple stores, present in the streets of major cities.
Robert Cihra from Caris & Co said, “Apple’s more aggressive iPad cost-vs-price strategy leaves no premium umbrella for commodity vendors to undercut on a spec-for –spec basis. Any vendor thinking they can match Apple on that basis is “kidding themselves.”
Competitors hit hard
The shares of Motorola went down by more than 4 percent, as the news about the price of iPad 2 started hitting headlines. Research in Motion shares also witnessed a fall of 0.3 percent.
Detwiler Fenton analysts have already termed Xoom sales as “extremely light.”
The repercussions of the launch were also felt by another rival, Samsung, which announced that it is rethinking about the launch of its 10 inch Galaxy tab.
Talking about the scheduled release, Samsung’s executive vice president, Dong-joo Lee said that the company had to “rethink parts that were inadequate,” and it included the price also.
Another challenge that the competitors have to overcome is the software of Apple.
Jobs raised the issue during the unveiling by saying, “our competitors are looking at this like it’s the next PC market. These are post PC devices that need to be easier to use than a PC, more intuitive. The hardware and software need to intertwine more than they do on a PC.”
As some of the competitors were still entering the tablet market, Apple gave them a severe blow by introducing the next version of its hugely popular iPad.
Price in Apple’s favor
While iPad 2 has a dual core processor and is designed by in house designers, the price of the iconic device remains the same as that of the older version.
The iPad 2 is being sold at prices starting from $499, while Motorola’s Xoom tablet starts at $599 and goes up to $799. Such competitive pricing will apparently be a major hurdle for the competitors to overcome.
Apple also has the option of selling the device directly through the net or through the network of Apple stores, present in the streets of major cities.
Robert Cihra from Caris & Co said, “Apple’s more aggressive iPad cost-vs-price strategy leaves no premium umbrella for commodity vendors to undercut on a spec-for –spec basis. Any vendor thinking they can match Apple on that basis is “kidding themselves.”
Competitors hit hard
The shares of Motorola went down by more than 4 percent, as the news about the price of iPad 2 started hitting headlines. Research in Motion shares also witnessed a fall of 0.3 percent.
Detwiler Fenton analysts have already termed Xoom sales as “extremely light.”
The repercussions of the launch were also felt by another rival, Samsung, which announced that it is rethinking about the launch of its 10 inch Galaxy tab.
Talking about the scheduled release, Samsung’s executive vice president, Dong-joo Lee said that the company had to “rethink parts that were inadequate,” and it included the price also.
Another challenge that the competitors have to overcome is the software of Apple.
Jobs raised the issue during the unveiling by saying, “our competitors are looking at this like it’s the next PC market. These are post PC devices that need to be easier to use than a PC, more intuitive. The hardware and software need to intertwine more than they do on a PC.”
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