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The iPad 3 Pricing Structure: What It Means For Android

Eric McBride
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Google, Microsoft, Amazon, Samsung, Motorola, HTC, Acer, Asus, Sony, and every other manufacturer serious about producing a tablet will be glued a certain media event in particular tomorrow: Apple's unveiling of the iPad 3/iPad HD. One thing that really impresses me about Apple is how much people actually look forward to their media events and releases. It's almost like a holiday, and they gather not only the attention of consumers, but of all tech giants world wide. Power, pure and simple. Love it or hate it, believe me when I say that the new iPad is going to be a very big deal, and with a rumored (from a very reliable source) pricing structure buzzing around the internet, I hope that Android tablet manufacturers will take particular note of Apple's pricing on this highly anticipated device. Let's have a look at the (rumored) price breakdown and what it means for Android....

Rumored iPad Pricing

Here are the pricing details so far for the iPad 3/iPad HD:

iPad 3 WiFi Only:

  • 16GB:  $499
  • 32GB:  $599
  • 64GB:  $699

iPad 3 with WiFi & 4G LTE:

  • 16GB:  $629
  • 32GB:  $729
  • 64GB:  $829

Umm...wait a sec...notice anything a bit odd here? Maybe it's the fact that the iPad 3's pricing is EXACTLY the same as the iPad 2, meaning that basically, you're getting better hardware and faster hardware for the SAME PRICE as the iPad 2.

How Android Tablets Can Compete

If the rumors are true, and the device actually ships with a quad core A6 chipset, has a 2048x1536 Retina Display, comes in 16,32,and 64GB models, and can be purchased for as low as 499 USD, THAT should be the MAXIMUM price point for ALL quad core Android tablets coming out this year, and not a CENT more. In all honesty, a LOWER price of 449USD should be what high end quad core 16GB wifi Android tablets should sell for.

Why? If Android wants to have a real chance in this market, manufacturers cannot make the mistake they made before and price their tablet offerings higher than the iPad......FACT....DONE....MOVE ALONG FOLKS NOTHING TO SEE HERE....END OF DISCUSSION....You simply can't do it. Android tablets are not selling well..fact. They are however BOOMING with potential , and if Android finally wants to penetrate this market, Google and producers of Android tablets need to realize a few things:

  • 2012 will NOT be the year that Android tablet sales surpass iPad sales, and most likely, neither will 2013
  • Regardless of superior hardware running in certain Android tablets, mass consumers will not spend more money for an Android tablet than an iPad (not yet anyways)
  • If you're not shipping Ice Cream Sandwich on your tablets, DON'T SHIP THEM AT ALL. Honeycomb was not ready for the prime time, and versions under that aren't in any way optimized for or meant to be on tablets (Google was clear about this).
  • Tablets are still considered luxeries, and if you want to sell them, you need to MARKET THE HELL OUT OF THEM. Samsung has shown that they are more than willing to put lots of money into advertising, and other manufacturers must follow suit.
  • Concentrate on 10.1 tablets and up, and only release 7 inch tablets to follow up successful sales of your 10.1 models. If your 10.1 inch model was 499, your 7 inch model shouldn't cost more than 349.
  • Selling 16,32,and 64GB models is fine, but keep selling tablets with expandable memory. This is a true unique selling point for Android tablets that makes it differ from the iPad, but oddly many companies seem to be quickly abandoning having micro sd cards in their devices. The same goes with USB ports, HDMI, ect. These are true unique selling points.
  • Keep European and Asian pricing competitive. 750 euros for a Motorola Xoom when it debuted (985 USD) was simply too pricey. I realize that they can't be the exact same price as their US counterparts, but they need to be more competitively priced (the iPad EU price was a lot more competitively priced than Android tablets).

I love my Galaxy Tab 10.1 (I say that a lot huh?), and what nerves me the most is that people don't know how truly awesome Android tablets are, and I blame that fact on Google (for software) and on manufacturers (hardware and pricing). Most people I show my tablet to have never seen a high quality Android tablet, and believe me when I say they are ALWAYS impressed, especially hardware and design wise. Mass consumers would also be impressed, but in order for that to happen, the pricing, marketing, and unique Android selling points need to be there.

Picture credits: Gizmodigit.com

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Comments

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  • Craig Webster Mar 6, 2012 Link

    Are you kidding? How is this news? Every iPhone has been priced the same as the previous iteration (at least for on-contract pricing... off-contract, I'm not 100% sure), why should the iPad be any different. Sure, you're paying the same price for better hardware... but it's a year later. That's how these things work. The rumoured pricing for the iPad3 means nothing, and I fail to see how this is newsworthy.

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  • Eric McBride Mar 6, 2012 Link

    Hi Craig,

    No, the pricing structure for the iPad 3 doesnt surprise me at all. The point of the article is what Android Tablet manufacturers can learn from the pricing, thus the title of the article (maybe you missed the "What It Means For Android" part?). High powered Android tablets have almost all been notoriously overpriced, under marketed, and buggy. The iPad 3 has always done what Android tablet makers havent gotten in their heads yet, and thats to price according to market demand, and not to price based on hardware and what they "feel" its worth.

    This certainly isnt an article announcing the iPad 3 price. If it was, the title would have read:

    "The iPad 3 Pricetag"

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  • Craig Webster Mar 6, 2012 Link

    But with the price being exactly the same as it always has, this doesn't mean anything for Android manufacturers. At least, nothing they shouldn't have learned 2 years ago. :P

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  • Eric McBride Mar 6, 2012 Link

    But thats the point Craig. They still havent learned, yet they wonder why tablet sales are going badly. NO Android tablet, at this point, can be priced as much as an iPad and hope to survive. They simply dont have the traction in the market yet to accomplish this, despite their superior hardware. WIth the release of quad core tablets this year, Google and their manufacturers have a chance to make this right and do what they should have done from the beginning, which I VERY much hope they do.

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    Christopher Silva Mar 6, 2012 Link

    Eric, I agree 100%. Your message is clear, lets hope that it is heard and implemented.

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  • Eric McBride Mar 6, 2012 Link

    I really hope so Chris! If Android tablets are ever gonna become popular, they HAVE to learn to compete more with the iPad, and not just hardware wise, but marketing wise and price wise as well.

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  • Casey Beth Mar 7, 2012 Link

    Im curious, because of your great affinity for your samsung tab, about some of the aspects you use and enjoy the most? When you say people leave impressed what are the general points people really like? Do you think you would enjoy your tab as much if it was a different manufacturer other then samsung?

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  • Eric McBride Mar 7, 2012 Link

    In terms of software, I think I would enjoy it the same, but in terms of design I wouldnt. The tab simply looks and feels great! Light, thin, and runs very well on ICS. It scales phone apps well and has a great selection of tablet applications as well. Heres a little video that shows its awesomeness! LOL

    http://www.youtube.com/watch?v=1iN_4NAbmuY

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  • chinu Mar 7, 2012 Link

    me 2 Eric agree to you.. lets c wht happens

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  • PatPion Mar 8, 2012 Link

    Talking about Honeycomb, do we know if there are any plans to update to ICS on any devices?

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  • Eric McBride Mar 8, 2012 Link

    Wish I knew that one. I have ICS running on my Galaxy Tab 10.1, but thats only because I rooted it. So far, it seems the only tablet shipping with ICS is the Transformer Prime. @Theunis - You think its worth me getting rid of my 10.1 in exchange for a Prime, or should I wait?

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  • PatPion Mar 8, 2012 Link

    The only real difference between the two, other than ICS, is the Prime has a quad-core processor. Maybe if it had more RAM as well. My Galaxy Tab 10.1 is still working great, I'm just itching for ICS on it because my new Galaxy Nexus is blowing my mind! ICS is a HUGE upgrade on Honeycomb!

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  • Eric McBride Mar 8, 2012 Link

    Yeah..the quad core processor is the only reason im considering the trade. ICS is great, but i want a quad core device. I just cant decide if i should jump on it now or later.

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  • PatPion Mar 8, 2012 Link

    I would wait until some better specs are released in newer tablets. :-)

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  • Eric McBride Mar 8, 2012 Link

    I think thats also the best choice :-D I still LOVE this thing.

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  • chirag garg Mar 13, 2012 Link

    for specifications and features of iPad 3 and many other you can also follow
    http://huntingtechtricks.blogspot.in/

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