Nvidia CEO: Android tablets sell poorly because they're too expensive

[Bateluer]

http://www.dailytech.com/article.aspx?newsid=21636

NVIDIA CEO Jen-Hsun Huang, whose company produces the Tegra SOC that powers the Xoom and other Honeycomb tablets, recently vented his own frustrations about the current state of the [Android] tablet market to CNET News. "It's a point of sales problem. It's an expertise at retail problem. It's a marketing problem to consumers. It is a price point problem," Huang explained.

The number one problem according to Huang is that manufacturers are simply pricing their Honeycomb tablets too high. The Motorola Xoom in its most basic configuration (32GB, Wi-Fi) costs $599. This compares to $499 for a base iPad 2 (16GB, Wi-Fi) and a relatively bargain basement $399 for the ASUS Eee Pad Transformer (16GB, Wi-Fi). However, those looking to actually find a Transformer in stock need to wait in line just like all of the potential iPad 2 customers.

“Tablets should have a Wi-Fi configuration and be more affordable. And those are the ones that were selling more rapidly than the 3G and fully configured ones," Huang added.

Yep. Get the pricing down to netbook level pricing, which is pretty much what these things are, and you'll see more sales. Also, give me a working Netflix that doesn't require me to root or mod the tablet. 😛

 

[Ns1]

"it's a point of sales problem. It's an expertise at retail problem. It's a marketing problem to consumers. It is a price point problem," huang explained.

:biggrin:
:biggrin:
:biggrin:

 

[JS80]

I don't get the hardon for 3G tablets. I have mobile hotspot on my phone which I use to connect my wifi iPad to when travelling and have wifi at home/work. Why would anyone pay for a data plan on a tablet?

 

[Suspicious-Teach8788]

I don't get the hardon for 3G tablets. I have mobile hotspot on my phone which I use to connect my wifi iPad to when travelling and have wifi at home/work. Why would anyone pay for a data plan on a tablet?

Tethering does drain battery like mad. I think my phone can't even keep up via the USB charger.

Part of this problem is Android software. There's nothing compelling enough to get people to buy one until Android 3.0 came out. And even then it was the Xoom and once again the carriers struck by making it VZW only until a 3G one later came out for some absurd price.

 

[JS80]

Tethering does drain battery like mad. I think my phone can't even keep up via the USB charger.

Part of this problem is Android software. There's nothing compelling enough to get people to buy one until Android 3.0 came out. And even then it was the Xoom and once again the carriers struck by making it VZW only until a 3G one later came out for some absurd price.

Good point. I just feel there are ways to alleviate that problem that doesn't justify data plan for 1 device.

 

[Sephire]

For me its the price.

 

[YoungGun21]

Price here as well. I really want to pull the trigger on a 10.1 inch tab. Even maybe something smaller, 8.9" maybe? I would still consider it a toy though, so even 400 is too much to pay.

 

[swanysto]

It is the price/usefulness factor for me. I don't need one of these things at all. I would probably use it once a week or so to watch movies. But if it was cheap, I would probably get one just to play with for a bit. Maybe use it on road trips or flights.

 

[Bateluer]

I don't get the hardon for 3G tablets. I have mobile hotspot on my phone which I use to connect my wifi iPad to when travelling and have wifi at home/work. Why would anyone pay for a data plan on a tablet?

Because the carriers would prefer that you pay them another 20-80 dollars each month for tethering. 🙁 Which keeps most people from doing it, aside from business users where the company pays the bill.

Tethering does drain battery like mad. I think my phone can't even keep up via the USB charger.

I can second this. Never tested it on AC power, and not on my TB yet. But the Droid 1 would stuck down a battery damn quick.

 

[BoberFett]

I'm waiting until tablets start hitting the $200 mark. The color Nook is close, but I'd rather not have to fiddle with rooting and such to get full usability. A tablet would make a great device to have around the house for looking things up quickly, taking notes, etc. without having to wake up the PC.

 

[Bateluer]

y. A tablet would make a great device to have around the house for looking things up quickly, taking notes, etc. without having to wake up the PC.

Can you not do these on your smartphone easily enough?

 

[zerocool84]

Can you not do these on your smartphone easily enough?

No, a larger screen is infinitely better for consuming data than a smartphone while not on the move.

 

[Bateluer]

No, a larger screen is infinitely better for consuming data than a smartphone while not on the move.

From what he said, I'm assuming Wikipedia and his note taking program of choice. I don't think that really requires a 10in screen.

 

[xSauronx]

Can you not do these on your smartphone easily enough?

thats what i do. i love my smartphone

thing is....i want something to use as a convenient reader, and for anything more than short periods of time, the phone is too small (3.7") but its great for casual use here and there.

Can't decide if i want the cheap kindle, nook color, or if I want to hold out (i dont, really) and sell my laptop to get an eee transformer when theyre easier to find. i havent used my laptop for productivity in the last 9 months at all the way i used to, so i think the transformer would do "enough" while allowing me the conveniences of a tablet device.

 

[zerocool84]

From what he said, I'm assuming Wikipedia and his note taking program of choice. I don't think that really requires a 10in screen.

Of course it doesn't require it, no one needs it, it just makes it more convenient and easier to deal with.

 

[Zen0]

The funny thing is that NVidia CEO is indirectly saying that Android Tablets are inferior (not priced accordingly) to the vaunted iPad.

But that was already clear based on sales and reviews.

 

[WelshBloke]

I don't get the hardon for 3G tablets. I have mobile hotspot on my phone which I use to connect my wifi iPad to when travelling and have wifi at home/work. Why would anyone pay for a data plan on a tablet?

Markets not just the US though. I can get a years worth of data for 40 quid and no contract .

I agree about the other points JSH makes though.

 

[Suspicious-Teach8788]

No, a larger screen is infinitely better for consuming data than a smartphone while not on the move.

Well see, then having a nice laptop at home that's portable is infinitely better. You can open multiple tabs, search things up WAY FASTER than any touch tablet.

I may be using OSX as an example, but juggling windows using Expose or even alt+tab in Windows and tabbed browsing is 100x easier than struggling through a tablet.

I feel like if I need to do anything intense enough, the computer does it. Anything light enough the phone should do it. The tablet's position for me is really not worth it. Sure there are times I sit on the couch and would love to pick up a magazine. I might not be that lazy where I can walk to my room and pull my laptop and bring it to the family room, but it almost seems the tablet is an excessive luxury good. I guess that's how Apple has placed this item in the market anyway.

I mean if it's a matter of convenience, it still depends where you put your tablet. IF you have to walk to another room, I might as well walk to my PC. That's why smartphone portability is the best. It's on you all the time essentially.

 

[Bateluer]

The funny thing is that NVidia CEO is indirectly saying that Android Tablets are inferior (not priced accordingly) to the vaunted iPad.

But that was already clear based on sales and reviews.

He didn't say anything of the sort. But when Average Joe sees a drive for 499 and another similar device for 599, which gets bought? Doesn't matter what the specs are or who made it, the cheaper one usually gets purchased.

Reviews of several Android tablets have been pretty positive too, FYI. AT reviewed both the Xoom and Transformer positively remember.

We will be seeing some cool stuff from Android tablets this summer/fall/winter though. 🙂

 

[JS80]

Because the carriers would prefer that you pay them another 20-80 dollars each month for tethering. 🙁 Which keeps most people from doing it, aside from business users where the company pays the bill.



I can second this. Never tested it on AC power, and not on my TB yet. But the Droid 1 would stuck down a battery damn quick.

Yea I guess I don't blink on the $30 hotspot charge from Sprint especially cuz my company pays for my phone...not sure if I would keep it if I was on my own.

 

[simonizor]

Well, duh. The only reason Apple has been able to sell them at this price point is because Apple could sell shit on a platter and people would pay whatever Steve Jobs told them to pay for it.

 

[Bateluer]

Well, duh. The only reason Apple has been able to sell them at this price point is because Apple could sell shit on a platter and people would pay whatever Steve Jobs told them to pay for it.

Bingo. That Apple log sells the product, everything else doesn't matter because you obviously didn't need it anyway.

 

[BoberFett]

Can you not do these on your smartphone easily enough?

I do, but the small screen sucks for general web browsing. It works in a pinch, but it's not really a pleasant thing to do.

 

[Ns1]

Well, duh. The only reason Apple has been able to sell them at this price point is because Apple could sell shit on a platter and people would pay whatever Steve Jobs told them to pay for it.

lol, no

why can't you just admit Apple has a better product? The sales figures don't lie when you compare apples to apples.

 

[JS80]

Markets not just the US though. I can get a years worth of data for 40 quid and no contract .

I agree about the other points JSH makes though.

SRSLy??