Quote:
Originally Posted by AustinChief
So wrong it's funny... tablets are not MP3 players... ok, actually they ARE right now.. a useful toy... but that is NOT the future. And more importantly none of the big manufacturers ever made any serious push to make MP3 players... it was a niche that had a too short of a window. MP3 players did not eat away at their sales... tablets eventually WILL and because of that, they are jumping in now.
Let's look at the ridiculous "Apple can get parts cheaper" argument... Do you honestly think an A5 will be cheaper than a Tegra2 (Tegra3 in the fall)? RIGHT NOW... the component cost of a Xoom and an iPad2 is almost identical. The iPad2's component cost will drop but not nearly as quickly as the Xoom's will.. mostly because more and more manufacturers will be using the same base components.
We are both "guessing" what the future holds... I am willing to BET that I am right on this...
If there is a $250 tablet with the same specs as the iPad3 out at this time next year... where do you think the market is headed? Do you think Apple will (or even CAN) match those prices?
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I'm too lazy to look, but how does the cost of the A5 chip compare to the overall cost? I'd be willing to bet it's pretty small.
There's more to price leadership than just scale, btw.
http://www.businessinsider.com/ipad-...vantage-2011-3