Tablets Must Drop Below $300 To Compete With iPad

Companies planning on competing with Apple in the tablet market will have to lower the prices of their products, an analyst has claimed.

Speaking during the Open Mobile Summit, Richard Windsor, global technology specialist at Nomura Securities, said that as Apple has a first mover advantage, companies who offer tablets at premium prices won’t see many sales as people are likely to go for the iPad.

He said tablet vendors would need to bring the prices of their tablets down to the $300 mark if they want to see heavy sales volumes.

“We do see other tablet vendors start to make an impression. This is caveated on price. They have to come down,” Windsor said during the event in London, CNET reports.

He said that one of the key points that might allow vendors to bring the prices of their tablets down is when the price of tablet screen goes down. Samsung, which competes with Apple with the Galaxy Tab, supplies screens to most of the tablet vendors. Samsung is opening a new manufacturing unit that might bring the prices of tablet devices down.

Windsor said that PC makers venturing into the tablet market are accustomed to lower gross margins which might also lead to a drop in tablet price.