The maker of the best Android tablet on the market, the Transformer Prime, has released a new model aimed to compete with the iPad by going cheap. The new Transformer Pad is almost like the Prime, but with a price that is $150 cheaper ($399) than the former.
Unfortunately what the Transformer Pad demonstrates is the only way OEMs can try to compete with the iPad on price is to cut corners on the hardware. ASUS did this in several key areas that makes the Pad less of a tablet than the Prime.
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Tablet Sales : Pulling Profits from Tablets
ringing profits from a margin-challenged category isn't a new problem for CE dealers. It recently hit a tipping point with TVs where vendors had to institute MAP and unilateral pricing policies to stem the ticket-slide tide. Tablets are just as margin-challenged, but there is no such vendor strategy on the horizon. Dealers are left on their own to extract as much profit as they can from the category.