Computers HP Offers $100 Discount in Hopes of Moving Its Tablet into the #2 Slot

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  1. Spider

    Spider Administrator Staff Member

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    [h=1]HP Offers $100 Discount in Hopes of Moving Its Tablet into the #2 Slot[/h] Posted by Ron Schenone on Aug 12, 2011 | 4

    In hopes of moving its tablet to the number two slot in this competitive market, HP’s GM began offering a trial $100 discount on its 16 GB units this last weekend. With this aggressive approach, the company was able to drop the price for this unit to $399. Apparently, this approach was successful, spurring HP to offer the $100 discount permanently, not only for the 16 GB model, but also for the 32 GB model — dropping its price on this unit to $499. My first thoughts on these discounts were to ask if they would be enough to get HP’s tablet positioned in second place to the Apple iPad, or if others would soon follow suit, taking away HP’s edge.

    With that being said, I must refer back to previous articles I have submitted, where I have mentioned that pricing would determine the success or failure of any tablet company. So, while I still believe this is true, I need to point out that there are some other caveats, along with pricing policies, that must be addressed. One such caveat is the Apple iPad, in fact the entire Apple product line, which no one can deny is in a class of its own. I personally believe that Apple will continue to dominate the tablet market place, maintaining its current #1 spot, as consumers will continue to pay a premium for a superior product. This will not only allow Apple to maintain its position in the market place, but will also allow the company to maintain its current price point advantage.
    [​IMG]Another factor to be considered will be the other players in the market such as Acer, Samsung, and Motorola among others who are also seeking to edge closer to Apple’s position in the tablet market. However, even these companies have found their tablet sales to be sluggish as consumers have raced to purchase Apple products.

    With most of these tablets using Google’s Android system, which functions fairly well, it is still another issue faced by other manufacturers as they struggle to find an operating system that will best meet the needs of the consumer. For HP this meant creating its own operating system, known as webOS, which to date has not received rave reviews. Of course, it hasn’t helped that consumers have been spoiled by Apple, which has a significant lead in its application offerings that others can’t compete against.

    So, going back to HP, will a $100 discount be enough of a price cut to get consumers to choose it over Apple’s iPad or a tablet from one of its competitors? I don’t think so, since both Apple and Android offer the consumer so much more in the way of applications and I can’t see consumers paying even $399 for an HP tablet with so few currently available.

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