Market watchers see high risk for iPad competitors to end up with excess inventory in 2nd half of 2011.
I already reported last week that the Black Friday 2011 sales season will feature exciting Tablet deals. Now more evidence of that happening comes in from Taiwan. Digitimes reports that market watchers see Apple iPad competitors getting stuck sitting on excess inventory in the 2nd half of 2011. This would mean that tablet makers need to cut prices dramatically to move inventory down the channels to consumers.
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The hardware performance of the current generation of HoneyComb Android tablet is comparable to what the Apple iPad offers. If prices come down considerably than many consumers might turn their interest away from the iPad. Under normal circumstances tablet makers would not offer deep price cuts, as production cost are high. But if it is really the case that there is excessive tablet inventory we will see a fire sale of tablets. The current generation of tablets will also likely see another update before the holidays. We will likely see two main Android tablet generations in the crucial holiday season. The new premium line will hold iPad prices, but the current generation of the Xoom and Galaxy Tab will be offered at rock bottom prices. Think $250-$300.
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