Feeds

Average selling price of tablets drops 21% in three months

Report: Slabs for the masses as ASP drops to £250

Using blade systems to cut costs and sharpen efficiencies

The average price of a tablet computer dropped 21 per cent in the first three months of 2012 - making $386 (£250) the average amount that customers pay for a slab.

Figures compiled by IMS research show the striking drop, which the tracker company attributed almost entirely to Apple.

Apple's price cut on its iPad 2 model in March - it pushed the price down to $399 from $499 after the release of the third-gen iPad - brought average prices down because of Apple's huge market share.

Apple's repricing put pressure on its competitors too, forcing competitive price-cutting among its high-end rivals.

In a cutting description of innovation in the tablet market, IMS analyst and report author Gerry Xu commented: “There are few innovations from vendors to differentiate their tablets; low price seems to be the major factor to attract consumers to buy tablets other than iPads."

Xu added that the price drop was putting strain on vendors who were struggling to balance performance and profitability with a low price.

At the lower end of the spectrum, Acer managed to produce an Android tablet for £130 - the Iconia Tab A110 out later this summer.

The Iconia Tab is built on Nvidia's quadcore Tegra 3 processor, a chipset that could power a generation of super cheap new Android tabs.

Tablet chart, credit: IMS research

The tablet market is the fastest growing in the tech sector, but sales dropped in Q1 2012, as the graph above illustrates, after the fall-off from the Christmas period. Notably iPad 3 sales actually tailed off last month in Europe. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.