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By GARETT SLOANE, nypost.com / Last Updated: 1:36 PM, August 25, 2011.
When tech is cheap, consumers listen.
That’s the lesson from the fire sale on Hewlett-Packard’s TouchPad tablet that turned a commercial flop into a cult hit.
Once HP decided to kill off the tablet and slashed the price to $99 from $399, consumers flocked to stores, which are now running out of a device that had been gathering dust.
The experiment in consumer psychology proved that the market is hungry for tablets outside of Apple’s iPad -- if the price is right.
Amazon is poised to enter the tablet fray with an Android-powered tablet in late September or October, a source with knowledge of the plans said yesterday.
The device will sell for hundreds less than the entry-point $499 iPad, a feat few tablet makers have accomplished, the source said.
Amazon is considered one of the few credible threats to Apple and has been willing to sell its electronics at a loss in hopes of generating more digital media purchases.
“If Amazon is particularly aggressive on pricing, that could be a trigger for many players to rethink the sales price of tablets,” said Charles King, the lead analyst at Pund-IT.
Aside from the TouchPad phenomenon, the lower-price tablet market is starting to surface, including entrants such as Vizio, which launched a $299 tablet this month.
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