Why has it taken so long for people to figure out they can't square off against the iPad and win?
Why did the Playbook and TouchPad crash and burn? Because they came in at the same price as the iPad.This is a strategy that failed against the iPod and the iPhone, so why did they think it would succeed against the iPad.
I have to assume it was because HP and RIM were living with their heads squarely up their own butts, arrogantly assuming that the power of their own brand was enough to compete with the Apple brand.
But now Amazon is about to move in to the market, and take on the iPad with their own tablet. And they'll probably win, if winning means taking a bite out of iPads current monopoly. Why will they win? Because they're going to price themselves at half the price of the iPad.
Such a positioning move implicitly acknowledges the dominant position of Apple, which is something neither HP or RIM were willing to do, and now it is contributing to their ultimate demise. But Amazon doesn't lose any face by admitting that Apple is better. After all, few people see Amazon and Apple being in the same space. One retails products. One makes retail products. It's like comparing Wal Mart to Sony.
Hopefully, Amazon stays with this strategy, because it will be a winner. I will gladly buy their tablet, if it's under $300.
And, secretly, I hope it makes Apple drop their iPad price to under $300. Because I'd rather buy one of them ...
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