Why Ipad 2 Might Not Reduce Price

Apple launched their iPad this week. Many rumors said that iPad's price would drop down because of their productivity limitation. Some industry experts think that Motorola, RIM, Samsung, HP and other consumer electronics giants would face unpredictable stress if Apple cut down the price of their new iPad. The threshold price of iPad is $500 and the highest price is $830 while those prices of Samsung Galaxy Tab or Morola Xoom are $500 and $800. However, Apple might not lower the price of their new tablet PCs according to their own situation and their competitors. The below are 5 reasons.

First, iPad 2 is a newer and better tablet PC from Apple. Why Apple reduce price?



Second, Motorola (http://motorola.com) Xoom. According to Recon Analyst Roger Entner's opinion, Xoom would surpass iPad in tablet PC market before formally launch of iPad 2. Xoom comes with dual cameras and supports Adobe Flash. It also could support LTE network from Verizon via upgrading. However, on the $800 basis which is higher than iPad threshold price, Xoom has to compete with laptops with great functionality. Xoom will be one of the main competitors of iPad2, but it has no price advantage.

Third, Samsung Galaxy Tab. Galaxy Tab's situation proved that Apple don't need to lower down iPad 2 prices hurriedly. This 7 inch Android tablet PC launched in November last year, but until now, their sale is not yet bright. The price of Galaxy Tab is $500 and its price would be down to $300 if users sign 2-year using protocol with Sprint. It's necessary for Samsung to upgrade their product when Android 3.0 Honeycomb and iPad 2 launches.

Fourth, RIM PlayBook. You might wait PlayBook from RIM for a long time. On the MWC this year, PlayBook related rumors include partial Android application support which make RIM avoid lagging behind Apple and Google in their application development. However, until now, RIM still doesn't disclose their release time of PlayBook.

Fifth, HP TouchPad. TouchPad is the first series of product after HP bought Palm. Having similar sizes as iPad, TouchPad is estimated to meet consumer in summer this year. The features of this tablet PC include front-facing camera, HP Snapdragon processor and so on. In some people's opinion, TouchPad is iPad 2 without iOS and App Store application.