What the Amazon Tablet Needs to Beat the iPad
Android tablet sales haven't come anywhere near those of the Apple iPad, even as every new Android tablet is hailed as the one to break the trend. A recent study revealed just what it would take for consumers to choose Amazon's upcoming Android tablet over the iPad.
The study, conducted by Retrevo, showed that it would take quite a bit to entice them to choose the Amazon tablet. Only 31 percent of surveyed consumers said they would choose the Amazon tablet even if it were $100 cheaper than the iPad 2. (The iPad base model sells for $499.) And more than half the respondents would not choose the Amazon tablet over the iPad even if it were $200 cheaper.
Of course, no one can resist a great deal. Nearly 80 percent of those surveyed said they would indeed skip the iPad and buy an Amazon tablet if it cost less than $250.
This data supports other pro-iPad sentiments revealed in the study. Of people planning to buy a tablet this year, 50 percent said they would buy an iPad, while only 21 percent were sure they wanted an Android tablet. (Ten percent wanted something else, such as the HP Touchpad, and 19 percent wanted multiple tablet models.)
Still, there's significant hope for Amazon, according to the study. Out of all the potential Android tablet manufacturers, Amazon seems to engender the most consumer trust. When asked which manufacturers they would consider buying an Android tablet from, 55 percent of respondents said they would choose Amazon. The next closest were Dell and Samsung at 38 percent each, followed by Motorola and HP at 31 percent, RIM at 24 percent and Barnes & Noble at 21 percent.
And Amazon will have a huge advantage in the market if it can price its tablet lower than the iPad. The Retrevo survey revealed that the majority of consumers (48 percent) think low price is the most important feature in the next tablet they buy, followed by a high resolution display (28 percent) and better input features (20 percent).
Apple is rumored to be developing a high resolution display for the next iPad, but the survey shows that a low priced Amazon tablet could still win consumers.
There's no official word about an Amazon tablet, but it's expected to launch this fall. There's no way of knowing what price Amazon would give an Android tablet, but many speculate the retailer is in a unique position to underprice the competition. Amazon could sell tablets at less than manufacturing cost and hope to recoup the loss and more by selling content. Amazon has a vast library of e-books, music, movies and even Android apps. Creating a tablet that takes advantage of that content could be a huge selling point for Amazon, along with the low price.