A fight is brewing among tablet makers, but Apple is sitting this one out, their fists stuffed with cash. Rivals, stuck with too many units and too few buyers are likely to start a price war, competing to see how long can they go, according to a Tuesday report.
The problem stems from “weaker sales than their order volumes” amid tepid consumer demand for tablets not bearing the Apple logo, says industry publication DigiTimes. The downward price spiral is expected to start at the end of September in order to “digest inventory and minimize losses.” By the all-important holiday period, non-Apple tablets could be selling as low as $350. The iPad 2, by comparison, is flying off shelves at $499.
In one instance, Asustek shipped 700,000 tablets, selling only 500,000 devices. Elsewhere. soon after HP shipped its TouchPad, the company slashed $100 off the price, turning a temporary discount into a permanent reduction. In another case, Acer has cut orders faced with slow demand.
The question becomes how low must iPad rivals drop prices before consumers will pick up an Android tablet? Next stop: the discount bin, next to the left-over floppy discs and zip drives.
