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Cheap price of iPad caught ASUS and MSI by surprise

Posted on Friday, January 29 2010 @ 21:03:45 CET by

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.



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