Thursday, November 18, 2010

Ipad vs Tab: Asian price wars set to spread to North America and perhaps, Europe

Over here in Asia, the competition posed by the Samsung Galaxy Tab and others have prompted rumors that Apple is considering slashing prices in some countries here in Asia. It therefore would be perfectly logical for Apple to make a similar move in North America where I understand that the Tab could be offered at US$400 with a data contract while the cheapest Ipad is still priced at $499 from the Apple store.

Samsung is aggressively entering the tablet market and in some markets such as Singapore, some telcos are even giving away the Tab for free if it is bundled with a new cable tv + internet subscription.

Given that Apple could soon launch their new iOS4.2, it will make sense for Apple to announce an across the board price drop of US100 in conjunction with the launch, and allow them to keep up the pressure on competitors. This will make up for their recent underwhelming Beatles-Itunes announcement.

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