You know all those sub-$200 7" tablets? Apparently its hard to make profits on them
0. phoneArena 30 Apr 2013, 17:31 posted on
Just in case you haven't read a story that made you think "Thank you, Professor Obvious", here's one for you: DigiTimes has done some research (we're not sure that was necessary) and found that the price competition surrounding 7" tablets has caused profits to "erode". We bet you never would have thought that devices sold just above cost would cause a drop in profits, right?...
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1. yyuu1000 (Posts: 149; Member since: 26 Jul 2012)
Well I have a nexus 7,it is a very good tablet it should be easily 300 but that 200 dollars price is hard to make money off, I have accessories for it.
15. cezarepc (Posts: 440; Member since: 23 Nov 2012)
I have a Nexus7 too as well and my accessories are worth around the same as my tab (Seidio active case, sony walkman headsets, ArmorSuite)
2. rallyguy (Posts: 401; Member since: 13 Mar 2012)
Accessories, and money spent at the Play store.
3. biophone (Posts: 1879; Member since: 15 Jun 2011)
This is good for google because the low price devices are getting people on the internet. The nexus 7 really pioneered this space. Other companies had to follow. I can see why google wanted it to trend this way. This is why the nexus 7 was created.
13. AppleIsGod (Posts: 48; Member since: 27 Aug 2012)
No, that credit goes to the Kindle Fire.
14. biophone (Posts: 1879; Member since: 15 Jun 2011)
That's true but the kindle fire was kinda more of an ereader first tablet second. Nexus 7 was more of an Internet device
5. biophone (Posts: 1879; Member since: 15 Jun 2011)
It's only a good deal if it fit your needs and does what you need it to do.
6. vincelongman (Posts: 487; Member since: 10 Feb 2013)
Low profit on each sale, but they will defiantly sell much more. Therefore they probably make a very similar (or maybe better) profit than if it was higher priced.
11. TheLolGuy (Posts: 464; Member since: 05 Mar 2013)
In some cases it can be a good deal. But you have to be careful what you wish for... At a breaking point (varies from company to company) companies will try to widen the profit margin a little more by trimming quality components and build standards.
When you pay more for a device it's not always guaranteed you're getting your money's worth -- but when you pay less, you are always getting your money's worth (aka crap)
7. 14545 (Posts: 975; Member since: 22 Nov 2011)
Well, it's kinda hard to buy accessories that don't exist. I mean ASUS released the dock like 6 months or longer after the tab itself. I think the case they produced was like 1-3 months. I mean if you are going to release something, have the accessories available on day one.
9. 1ceTr0n (Posts: 305; Member since: 20 May 2012)
Remember, Apple doesn't know how to make a $500 computer thats not a peice of crap. So sayeth Steve Jobs.
10. Edmund (Posts: 634; Member since: 13 Jul 2012)
This segment is all but dead. Look up supply side economics and you'll understand why this model is unsustainable
12. sprockkets (Posts: 862; Member since: 16 Jan 2012)
Apple sold around 7 million more ipads than last quarter of last year, and they still made the same amount of profits.
Obvious observation: The ipad mini's margins are lower than the ipad2 or the ipad4.
16. TheBitterTruth (unregistered)
Apple is greedy!
17. martinlosha (unregistered)
Give them for free.....