Linked by Thom Holwerda on Sun 24th Feb 2013 17:26 UTC
PDAs, Cellphones, Wireless "It's officially true: Hewlett-Packard is back in the mobile race. Today, HP is announcing its first Android product: the HP Slate 7. But it looks like the company won't be making a splash right away: Starting at $169.99, the new device will launch this April with a fairly unimpressive set of specs." As I've been working my behind off on a huge Palm article, HP turns around and slaps this thing in my face. You had one job, HP.
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RE: It's a start...
by leos on Mon 25th Feb 2013 06:12 UTC in reply to "It's a start..."
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They're a huge company, great distribution. My only interest is that this is going to continue to lower prices and eventually create better products in the long-term.

Because if there's one thing we know it's that a race to the bottom with razor thin margins always lead to amazing products and lots of money spent on R&D.

Edited 2013-02-25 06:12 UTC

Reply Parent Score: 4

RE[2]: It's a start...
by chithanh on Mon 25th Feb 2013 10:41 in reply to "RE: It's a start..."
chithanh Member since:

HP needs to establish a market presence in tablets before they can sell premium devices. This is a lesson that others (Motorola, Blackberry) have painfully learned, too.

Reply Parent Score: 5

RE[3]: It's a start...
by Nelson on Mon 25th Feb 2013 18:07 in reply to "RE[2]: It's a start..."
Nelson Member since:

Helping the tablet market further erode its prices doesn't really seem logical to HP given that they provide no value-add to the customer.

It could be argued that it's worth it to accept tiny margins and high volume if it meant subsidizing some kind of ecosystem. HP isn't doing any of that. They don't have any ulterior motive for being in tablets other than wanting a slice of the monetary pie. This works against that.

Tablets are moving into this super cheap, low profit territory that I'm not sure anyone but Google and maybe Amazon even want.

HP would be wise to carefully study the effects of what they're doing, given that these prices are more easily cut than raised. Good luck trying to charge a premium down the road when people realize that, wow, a $170 tablet is unsustainable.

HP sells no services in the vicinity needed to sustain this if it catches on. They're wasting their own time.

It is a very nice tablet though, I was surprised.

Reply Parent Score: 2

RE[3]: It's a start...
by unclefester on Tue 26th Feb 2013 04:31 in reply to "RE[2]: It's a start..."
unclefester Member since:

HP needs to establish a market presence in tablets before they can sell premium devices. This is a lesson that others (Motorola, Blackberry) have painfully learned, too.

Casio started out selling very cheap digital watches. They now sell watches ranging between $20 and $5000.

Reply Parent Score: 3

RE[2]: It's a start...
by PaxD75 on Tue 26th Feb 2013 01:36 in reply to "RE: It's a start..."
PaxD75 Member since:

@leos: I don't think I was clear above. What I meant... when you have a big player enter the arena, other players may need to do more to differentiate their products. Instead of a keyboard dockable 8" tablet (with bells & whistles) at $600, we could see this mythical beast listed at $400. We might see two similar low-spec devices with the only difference being the aspect-ratio. It's a ripple effect.

Bargain basement shoppers will buy low-end from a more reputable source (with support) and those who shop by specs will have an increasing variety in the upper range as companies consider other market strategies.

This past Christmas, a cousin of mine refused to pay for Google's Nexus 7 ($200, Taxes, Shipping, faceless-entity, questionable support) or a Samsung 7" (about the same price last time I checked). He opted for a $129 Chinese knock-off (no google play) at a **local store** (local, walk-in support was his preference) - despite my strong warnings against the brand. My brother-in-law, who now hates his iPad, refused to consider the higher-end 10.1" Android tablets and I wasn't about to suggest a generic overseas brand. Price was his motivation after having felt burned by his Apple purchase and a name-brand with decent reviews was my motivation.

HP's entry changes the purchasing dynamics for consumers and strengthens the lower-end of the market in the short-term. In the long-term, if they continue to invest and other companies react, WE end up with better options throughout the entire spectrum of devices (low-end to high-end) from different and more reputable sources.

Reply Parent Score: 3