It does not look good for Android HoneyComb Tablet makers and retailer sitting on piles of Tegra 2 Tablets.
The Tegra 2 Tablet generation was supposed to take on the Apple iPad 2. This attempt pretty much failed. The latest report sees the Apple iPad market share at 75%. Besides the lack of consumer appeal now several more issues arise that make the current generation of Android HoneyComb Tablets are shelf warmers. The next Android Update dubbed Ice Cream Sandwich is not launching for tablets this year. There will be a whole new Android Tablet generation that will be released in Spring that come pre-installed with Android 4.0 and ran on faster hardware.
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Additionally the first Tegra 3 Android Tablet has already been announced and it will ship in December making Tegra 2 Tablets officially outdated. The Asus Transformer Prime got unveiled yesterday. Asus is still shipping the Transformer Prime with HoneyComb by the way. You can later upgrade to Ice Cream Sandwich at some point next year.
Then there are the new kids on the block that attack from the low-end. The $199 Kindle Fire and the $249 Nook Tablet are apparently even set to steal market share from the iPad according to Retrovo 44% of surveyed consumers would consider buying a Kindle Fire instead of the iPad. I would guess that this percentage would be even higher when the decision is between an Android Tablet and the Kindle Fire.
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The above reasons would actually already be enough to trigger fire sales, but yesterday it got even worse. Adobe announced to stop developing Flash on mobile devices. The big marketing argument for Android is Flash support. Now that Adobe shifts to HTML5 that aspect goes away. Maybe a creative marketer will turn things around and will say "Buy this HoneyComb Tablet it still got Flash support, the next generation won't have it." Fun aside, Tegra 2 Tablet fire sales are imminent. I actually do not know why retailers still think they can keep the prices up, although many already cut prices by $100. $100 is though not enough. At the latest, the Android Tablet Fire Sale will start on Black Friday. The Staples Black Friday Ad has already revealed that the Acer Iconia Android Tablet will sell for $299. There will be many more Tegra 2 Tablets to go on sale for under $300 soon. Check our Black Friday Tablet Deals Guide for the latest offers.