Android Tablet: Cheapest Tablet PC

Wednesday 24 October 2012

Cheapest Tablet PC

Yesterday we reported on rumors of the possibility of a $99 Nexus 7 from Google. This magic price point is seen, from a marketing point of view, as a sweet spot which will drive the further consumerization of tablets. At the moment the lowest priced big brand tablet is the Amazon Kindle Fire which costs $159 (with special offers and sponsored screensavers displayed on the lock screen). It is also possible to get single core, 7 inch Chinese tablets for as little as $79. However it is worth noting that in most countries a sales tax needs to be paid to customs when you get your tablet delivered. This can push the actual price to around $95.

What this means is that sub $100 single core, 1Ghz, 7 inch tablets with Android 4.0 or 4.1 (depending on the manufacturer) do exist today and it is possible to make them for that price. However once you add profit margins, R&D costs and corporate overheads it does become a bit more tricky.

If Google really is trying to create a budget tablet it will likely start a new “race to the bottom”. Although traditionally used as a socio-economic term to describe the taxation policies of countries or states, the concept can be equally applied to building cheaper and cheaper consumer devices to boost sales. The problem with the race to the bottom is something needs to be sacrificed to reach the low costs. In economics, work force regulations, wages and taxes are offered on the altar to attract businesses to a given area. In consumer electronics what is sacrificed is quality, features and usability.