| famousringo said: Yeah, it's going to be a bit of a bloodbath. It's easier to count the smartphone and PC manufacturers who aren't working on a tablet than to count the ones which are. The competition for components alone is fierce, which gives the advantage to huge buyers, like Apple, and companies who can supply themselves, like Samsung. Rumor is that Apple will buy something like $7.6 billion in components from Samsung this year, and that's just one of many suppliers. Then once you get them built, you have to find a place to sell them. Carriers are willing to do some work here, but that drives up the price of your product, because now you have to include a 3G radio and probably a mandatory contract, along with whatever other concessions the carriers can squeeze out of you (and you're not in a good negotiating position thanks to the ten manufacturers behind you with almost identical offerings). From what I hear, electronics stores like Best Buy aren't too interested in selling non-Apple tablets right now, but I think that will change as it becomes clear how stagnant desktop and notebook PC sales will be as mobile devices keep booming. Once you've jumped through all those hoops, you need to find a customer, and somehow convince him/her not to buy the iPad that defined the market or the marginally better Android device your competitor is launching next month. The competition will be brutal, and the winners will become the Dells and HPs of the next 10-20 years. In other words, they'll earn slim margins on huge revenues while the software suppliers reap all the profits. What a prize. :-/ |
Sony can manufacture all the parts themselves if need be. But the ipad is going to be a tough competitor no matter what though.
