Ever since the iPad was released back in early 2010, it has opened everyone’s eyes to the joys and great ease of use that can come from a tablet pc. Immediately competitors jump red on the bandwagon, and companies such as Amazon have still only just released their competitor the kindle fire, nonetheless iPad still heavily dominates the sales in this Market. So much is this threat from the likes of Apple and Amazon that ‘pure pc’ manufacturers such as Dell and Acer will be exiting the tablet Market completely next year.
According to ‘inside sources’ at DigiTimes the likes of Hewlett-Packard, Acer, Asus and other pure pc manufactures will be dropping out of the Market as they cannot provide the content that Amazon and Apple can I.e. Integrated music stores, app stores etc.
One of the reasons the iPad is so successful is it’s automatic integration with the AppStore, iTunes and other Apple related stores, meaning that in purchasing an iPad you are also pretty much assured to be spending more money with Apple on digital content. Amazon has the same situation with their new kindle fire, and apparently are even selling the hardware at a loss, at the gain they will have in digital music, app and book sales through the device.
With hardware prices not very high, it is very hard for companies such as Acer and HP to make a profit with no revenue coming from content sales, and thus their apparent decisions to drop out of the Market and leave it to those that can.
Some are even predicting that devices from Amazon and Barnes & Noble (another big manufacturer) may even be sold for practically free in the future, in light of the content that can be sold to consumers through the later on.