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NVIDIA CEO outlines reasons for slow Android tablet sales

Posted: , by Victor H.

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NVIDIA CEO outlines reasons for slow Android tablet sales
NVIDIA is one of the main driving hardware forces in the Android tablet world and slow sales of tablets with Google’s operating systems seem to have touched NVIDIA’s CEO Jen-Hsun Huang on the raw. Huang uttered not one, but a couple of arguments detailing the reasons behind the slow start of Android tablet sales in an interview for CNET: "It's a point of sales problem. It's an expertise at retail problem. It's a marketing problem to consumers. It is a price point problem," he mentioned.

While the first three arguments seem to touch on all Honeycomb tablets, most of which run on the dual-core NVIDIA Tegra 2 chip, the price point issue instantly spurs thoughts about the Motorola XOOM. "The baseline configuration included 3G when it shouldn't have," Huang underlined. "Tablets should have a Wi-Fi configuration and be more affordable. And those are the ones that were selling more rapidly than the 3G and fully configured ones," he further explained his point. The Motorola XOOM hit retail shelves with a hard-to-swallow $799 price tag for a 3G version and lacking a Wi-Fi only model initially. In comparison, the iPad 2 carries a much more affordable $499 price tag for the base model with no 3G.

NVIDIA's CEO Jen-Hsun Huang

NVIDIA's CEO Jen-Hsun Huang

Echoing what rival Apple has been pointing out for a couple of months now, NVIDIA’s main man added: "And it's a software richness of content problem." The scarce number of tablet-specific apps seems to become the chant for tablet makers as Motorola’s own Sanjay Jha also mentioned the problem.

But all of those negatives have been “largely addressed by a new wave” of tablets as per Huang’s words. We can only hope for the upcoming Galaxy Tab 10.1 and 8.9 to live up to the expectations this time and give us, the users, more arguments to opt for an Android slate. But what’s your opinion about the slow start of Android slates and the underlying reasons? Don't hesitate to let us know in the comments below.

source: CNET

21 Comments
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posted on 16 May 2011, 05:54

1. Noname (unregistered)


How about Ausus Transformer? It is cheaper than ipad 2.

posted on 16 May 2011, 07:23 1

4. protozeloz (Posts: 5321; Member since: 16 Sep 2010)


its really hard to get, and he probably talking about the XOOM, it was not marketed properly and created a lot of confusion, Samsung learned from its mistakes and the wifi version of the galaxy tab will come in all price ranges and wifi first than 3G

posted on 18 May 2011, 01:56

21. Surfy.101 (unregistered)


For Asus Eeepad transformer, it is a manufacturing problem... if they don't fix it soon, buyers will be getting other slicker ones such as Galaxy Tab 10.1 and 8.9 coming out real soon.

posted on 16 May 2011, 06:41 2

2. Meha (unregistered)


Its definitely the price which is making harder for android tablets to not been able to challenge ipad.
Secondly, i think most of us don't have any problem with the specification of all of the android tablets, its the software side of the thing which is not living up to the standards.

You count the number of companies throwing android tablets in the market, all competing against one and only Apple who merely let a single version of a device out once in a year and still they collective can't beat Apple.

Guys, i'm not a Apple fan. Thats what we see and analyze the facts.

posted on 16 May 2011, 08:08 2

5. protozeloz (Posts: 5321; Member since: 16 Sep 2010)


you cant hope to beat a device that was king (had the majority of the market) in less that a year with any new device, things take time to fall into place

posted on 16 May 2011, 08:53

8. iwebdroidberry7 (Posts: 230; Member since: 17 Jan 2011)


The Galaxy Tab came out a few months after so Android isn't that late to the game.

posted on 16 May 2011, 10:04 3

10. protozeloz (Posts: 5321; Member since: 16 Sep 2010)


yeah, a game that only Samsung was playing? If we pull a poll here I bet many android fans wont support Samsung knowing their own companies will make tabs too, duh!

posted on 16 May 2011, 19:53

19. Lucas777 (Posts: 2121; Member since: 06 Jan 2011)


uhh well apple is single handedly playing the game... should baby samsung just cause they rnt as good?

posted on 17 May 2011, 07:21

20. protozeloz (Posts: 5321; Member since: 16 Sep 2010)


English please?

posted on 16 May 2011, 11:33 3

15. JeffdaBeat (unregistered)


It's all advertising. No one knows the XOOM exists or that it's a extremely powerful tablet. And you have to wonder whose job it is to sell the ads. Motorola should be on an ad blitz akin to what Microsoft did for Windows Phone 7. The only difference is Motorola isn't extremely late to the game where as Microsoft was 4 years late to the party. Folks don't know that there is a great alternative to the iPad so they don't buy it. Carriers could also run ads, but then you have to deal with the perception that you have to have a contract to buy a XOOM. I think it all falls on Motorola to push their product. But being a manufacturer and not a retailer, they don't have the best ad team in the world.

Price does play a factor as well. If Apple is ever cheaper than you, then you need to lower your prices. Especially if the general public perception is that Apple is expensive just because of the name brand...

posted on 16 May 2011, 14:42 2

17. JaimeCarlos (Posts: 25; Member since: 17 Feb 2011)


Indeed.

Advertising... You know why Apple has so much advertising? Because people, webs, forums, users, talk about it, compare products with it. That's the cheapest and best advertising any company can buy. And while this continues, Apple will be the king. I have never bought any Apple product, but having heard some much about them, I'm considering it.

posted on 16 May 2011, 06:57 1

3. prxboyz (unregistered)


yup, he's right. Android tablets are selling in slow phase is because they didn't make their hardware stable enough to actually run.motorola xoom is slow and buggy when it comes to potrait mode and the price is hard to believe! motorola should have slow down and make their tablets stable enough before selling it. they should not sell it quickly to battle ipad. they should make the software sturdy enough to let it go! i wish that samsung galaxy tab could bring soemthing amazing to the table.

posted on 16 May 2011, 08:33 2

6. duke594 (Posts: 11; Member since: 03 Sep 2009)


I am confused on how the xoom is unfinished. It can do everything the ipad2 can do and more. I haven't had a single software issue and you can't fault Motorola for software issues anyways. The software is made by Google. That would be like blaming HP for a windows 7 software issue. Second there is over 170,000 apps already for the honeycomb os. Plus Google just launched an update to the software that fixed many bugs that were reported. If you compare to

posted on 16 May 2011, 08:37 2

7. ralphyd (unregistered)


I think the price and lack of a good marketing plan is why android tablets are finding themselves second to apple. I have a wifi xoom and I don't find it nearly as buggy as people claim. A majority of people aren't going to take a gamble and pay more for a device that doesn't have the reputation the I pad already has. Over time however, I feel that android tablets will gain a better reputation because I do feel it is a good platform. When the Ipad first came out a lot of people doubted that there would be a market for it. Granted the ipad sold out immediately I guarentee a large number of people who own a tablet now were not convinced a tablet would be practical a year ago.

posted on 16 May 2011, 09:35 2

9. GreenMeansGo (unregistered)


Three things Andriod tablets must have to compete with Apple, in order of importance (#1 is most needed):

1) A "killer" app.
2) Ingenious marketing
3) Lower prices

Right now, Apple has #2 and #3 (in some cases). But it doesn't have a "killer" app (well, you might say Netflix on iPad is a killer app, but I'm thinking the killer app needs to be something people need that hasn't really been thought of yet). Anyway, the Android tablets can gain some much-needed momentum with the development of a killer app that iPad doesn't have, or that iPad doesn't have first. With such an app, the Android tablets can claim that iPad may have MORE apps, but Android has the one app that you really want.

posted on 16 May 2011, 10:50 1

13. Draqus (unregistered)


NefFlix really can't be called a "killer app" in any sense anymore since NetFlix announced last week it will be rolling out its app for Android devices. It already rolled out for a couple of Android phones and will continue to roll out for more Android devices as it tests on each individual Android device.

posted on 16 May 2011, 10:34 1

11. Sniggly (Posts: 6468; Member since: 05 Dec 2009)


The price issue is overblown, because when complaining about price, the whiners were comparing apples to oranges. It's like saying a Buick is overpriced compared to a Honda.

However, the marketing/sales problem is exactly where it's at. I've already described my experiences walking into multiple Best Buys and finding the Xoom shoved off to the side while the iPad 2 gets its own endcap with a gigantic sign. And on the Verizon website Apple's products get their own category all to themselves. Android hardware makers need to fight fire with fire.

posted on 16 May 2011, 10:38

12. Draqus (unregistered)


The "slow sales" of tablets is based on one true Android tablet, the Motorola Xoom. It was the first tablet to be offered for Android 3.0 (Honeycomb). All the other tablets are running on pre-honeycomb Android versions which were designed for smartphones making those tabs just large smartphones. Android 3.0 is the first Android OS specifically for tablets and computing functions over telecommunications functions (hence the criticism for launching 3G versions before wifi only versions).

Android 3.0 was only released at the beginning of this year and only two more tablets have been released for it so far. But as Noname said the Asus Transformer is hitting the market hard with prices well below iPad2 and Xoom and is literally selling faster than Asus has been able to manufacture. There aren't many apps for Honeycomb yet but Google gave away 5000 Samsung 10.1 Android 3.0 tablets to developers last week so more apps will be coming very soon.

With the Asus Transformer 10.1 being a fully loaded Android 3.0 tablet with a new low price point (and constantly selling out) and both the Samsung Galaxy 10.1 (June 8) and Toshiba Tablet 10.1 (July?) Android 3.0 tablets set to debut the Honeycomb market is about to explode. 2011 is promising to be the year of the Android.

posted on 16 May 2011, 11:31

14. dennis (unregistered)


There is nothing an android tablet can do that a phone cant. In some cases the tablet is only a few inches bigger than the phone. All iphones have a 3.5 in screen. Its a big difference watching a movie in a 10 inch than a 3.5 inch one. But if you have an Android will a 4.3 to 5in screen the you pretty much all ready have a tablet. Whats the point on spending 700 doollar for a bigger screen. Android tablets have to get cheaper to compete with Android phones.

posted on 16 May 2011, 12:00

16. Draqus (unregistered)


First the Asus Transformer is $399 not $700 which is why it keeps selling out. And smartphones are not the same as tablets anymore. Honeycomb 3.0 has just changed the game by giving some real computer power to tablets. A mobile OS that can take advantage of dual core processors and offers true multi-tasking (which probably won't even be practical on a smartphone). And maybe you want to read "War and Peace" on a sub 5" screen but I'll pass. A 10.1 screen offers a page about the same size as a printed page of a hardbound fiction book. And working on a spreadsheet on a small phone screen, I don't think so.

Some of Android 3.0 features will definitely make their way to smartphones when Google releases "Ice Cream Sandwich" (the next version of Android). But smartphones and tablets will never really synonymous again even though many models may share similar features.

posted on 16 May 2011, 17:21

18. protozeloz (Posts: 5321; Member since: 16 Sep 2010)


well android tablets have

-hardware acceleration
-USB host support (being rolled out)
-more storage that the average
-tabbed browsing and incognito mode

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