Cheap price of iPad caught ASUS and MSI by surprise

Posted on Friday, January 29 2010 @ 21:03 CET by Thomas De Maesschalck
DigiTimes heard Taiwanese notebook vendors like ASUS and MSI are rethinking their tablet PC strategies as the cheap entry-level price of Apple's iPad caught them by surprise as they expected a price point of up to $1,000.
The vendors originally planned to offer prices pegged at 20-30% lower than the Apple iPad, while they generally expected the device to cost as much as US$1,000. The US$499 entry-level price has caught vendors by surprise and means they will now need to adjust their price scales even lower to attract consumers, the sources pointed out.

However, starting a price war at below US$499 raises concerns that any profitably will be driven out of the nascent tablet PC market, before it even has a chance to take off. Vendors are currently evaluating their strategies hoping to avoid price competition, the sources noted.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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