Analyst predicts tablet price drop to $300

A market analyst named Richard Windsor, who works for Nomura Securities, claims that the market for the tablet industry will change in such a way in the next couple of years that the prices of the highly sought after devices will drop to as low as $300.

Speaking at the Open Mobile Summit in London and picked up on by CNET, he says that "[it] could become the fastest commoditized market in history", as he later suggested we would see the end of high priced, rare tablets by the end of next year.

Obviously the tablet electronic device has been around for many years now, however since the release of the iPad last year in 2010, the idea of a tablet in the hands of the every day consumer has driven the market forward. Today we not only see the iPad 2, but various developments by Dell, HP and Samsung amongst others. Windsor claims therefore that as more tablet variants are launched to the public, that the price can only do one thing, drop.

There is more science to this though, Samsung are developing a new generation of LCD screen which makes the overall production cost of the tablet decrease and the amount of people willing to pay the high profit margin that tablets usually carry with them, are running out he claims. This in turn will drive down prices to make them more competitive as it is expected that tablets will become a must have item for a lot of consumers.

Image Credit: openmobilesummit.com

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umm, apple refurb store, 16GB wifi iPad for $350 shipped? $400 new asus transformer? Think we are already there. I suspect we will see mainstream QC'd tablets for under $200 soon enough.

HDMI out and bluetooth keyboard/mouse support could replace your computer and simple dock disconnect and you're mobile.

This article is on the money!

I think Apple can definitely afford a 100$ Price Drop with the iPad 3 and continue to kill off the competition for another couple of years.

raghavny80 said,
I think Apple can definitely afford a 100$ Price Drop with the iPad 3 and continue to kill off the competition for another couple of years.

Unless the iPad 3 incorporates a LOT more, I don't think they are going to fend off the competition. Competition is already $120 cheaper for a tablet with more features.

Teebor said,
You can buy an Android powered tablet already for under £100

We are talking about devices someone would actually want to use.

bob_c_b said,

We are talking about devices someone would actually want to use.

My understanding is the CNM2 has some problems but is generally not a bad device and is not bad in use. Mixed reviews though

bob_c_b said,

We are talking about devices someone would actually want to use.


In that case we can ignore Android tablets entirely...

.Neo said,

In that case we can ignore Android tablets entirely...

Ha.
But why stop there? With today's tablets' functionality, we could just ignore everything but Windows 8...

goods only cost what a consumer is willing to pay for them. It has nothing to do with manufacturing cost. as long as demand outstrips supply the market will maintain the current price points.

If they kept making the exact same tablets for years then this would likely happen, however pushing the envelope on each iteration, adding new small/faster/better hardware is certainly not going to drop the price by much, since R&D is a big chunk of the costs.

Any product that see widespread competition and market acceptance will undergo some downward price pressure, this is hardly a revelation. If any Android tablet is going to sell in significant numbers it will also have to be significantly cheaper than the iPad.

Based on what information? Why the **** do these analysts come up with conclusions without providing a rationale? Why should tablet prices fall just because tablets are commoditized? Just because production costs will reduce doesn't mean market prices have to fall. Everyone wants to suck every dollar out of each of the technologies. Bigger margins = Bigger Net Income. Also, is this analyst considering inflation?

This in turn will drive down prices to make them more competitive as it is expected that tablets will become a must have item for a lot of consumers.
Why would "must have" devices cost less in the future? Ridiculous.

I don't mean to derp at you, but you do realize that today's $700 consumer PC standard compares to a $2000+ PC standard in the early-/mid-90s, right? Higher demand streamlines production which drives down prices. If tablets go truly mainstream, production costs *will* go down. That's just, well, a matter of fact. I'm kind of surprised somebody would disagree with this.

/if the cost of PCs has more than halved in 20 years, does that mean zero inflation has happened?
//or is inflation just a moot point that I've never heard ANYONE bring up before in this kind of topic