Tablet makers rethink strategy in wake of low Apple iPad pricing

The Apple iPad has certainly divided opinion since its official launch earlier this week. However, if there has been one universal positive, it is the low starting price of $499. Many expected a much higher price given Apple’s history of healthy margins on most of its products. Apple appear to be trying to carve this tablet market out for itself, and it has priced the iPad accordingly.

This unexpectedly low pricing has set the cat amongst the pigeons at manufacturers planning on releasing their own tablet products this year. The likes of Asus and MSI originally believed that they would price their products around 20 to 30 percent lower than the Apple iPad. But this was when a $1,000 price point was rumoured. The surprise $499 entry level pricing has caught many of these manufacturers off guard and will need to adjust prices even lower at the cost of margins. The end result is probably great news for the consumer as we’re likely to see quite keenly priced tablet products from the Taiwanese manufacturers.

Via Digitimes.