What a last two weeks it has been for tech. nerds/fans/consumers. First Amazon announced their new tablet that they believe will be able to compete with Apple’s iPad 2. Yesterday Apple announced its iPhone 4s with a higher quality microprocessor and voice recognition system than that of the regular iPhone 4. And what’s this? A $35 tablet? It’s true! Developer Datawind just announced that they will be selling $35 tablets in India as of today!
Now for those of you that don’t care about tech. – I know that I’ve already lost you. But for all of my tech. lovers, take a minute to breath. I’ve already shared my opinions on the new Amazon “Fire” Tablet, but what about the iPhone 4s and this new tablet? While the rest of the world (including the stock market) was anticipating Apple to unveil the iPhone 5 on October 4th, Apple pulled a fast one on everyone and unveiled the iPhone 4s – which in a sense is just a re-vamped iPhone 4. And although there was no iPhone 5, there was iOS5 – the fastest mobile processing system that Apple has ever produced and iCloud. The iPhone 4s is also priced very reasonably, compared to previous iPhone’s at their release date, starting at $199 for 16GB.
This announcement is a historic milestone for Apple because for the first time ever they are offering consumers 3 different models of the iPhone to chose from in a purchase – and at all time low prices. Doesn’t sound like usual Apple strategy, but the fact is that Apple is far off the smart phone market share due to the increased quality of Android phones. In fact, according to the New York Times, Apple has approximately only 18% of the smart phone market share. However, despite this low market share, Apple still makes the most revenue out of the smart phone industry than any other company. So what does this all mean? Well given the fact that Apple and Sprint have just struck a deal to allow Sprint to carry the iPhone, and the new iPhone 4s at a lower price, it is clear that Apple is taking a run at Android for the smart phone market share. In my opinion, this is a full proof strategy because not only has Apple given their consumers the variety in a purchase that they usually lack, they have also relaxed their prices during the holiday season AND right after announcing a new product! Do not be surprised if Apple climbs back up in terms of the smart phone market share and continues to increase their revenue from their mobile product line.
Back to India – a $35 tablet? Really? Well it is not nearly as good as it sounds because you cannot buy one! Nonetheless it is a incredible story. Developer Datawind is selling these tablets to the Indian government at $45 per unit, and with subsidies, the government is reducing the price to $35 for students and teachers in India. What is the point of all of this? Well the obvious is that Developer Datawind has initiated a tablet price war in the Indian market. But on a more ethical platform, the company has decided that it is important to use their products as a way to provide the countryside/impoverished of India with modern technology at a affordable price in the attempt to increase their standard of living.
Human Resources Development Minister Kapil Sibal called the announcement a message to all children of the world.“This is not just for us. This is for all of you who are disempowered,” he said. “This is for all those who live on the fringes of society.”
*Katy Daigle (Associated Press)
All of these recent events in the technology industry have sparked what is sure to be an undoubtedly change in the market(s) and consumer perceptions. And while I am not going to go replace my iPhone 4 with the 4s or purchase the Amazon Fire (I bleed Apple) I am looking forward to the day when an American company takes a run at the tablet market and introduces a $35 tablet!! That I would buy in a heart beat.
THE JOUST 