Apple Squeezes Counterparts Out of the Market

Published:2011/3/7 21:38:00 Author:Amy From:SeekIC

After iPad 2 announced, the price of iPad drops over one thousand yuan. “16 G certificated iPad is only 2888 yuan which is even lower than smuggled goods,” said a salesman of Shanghai.

The slashed price of Apple iPad makes Wang Bangjiang who is the vice-president of Hanwang Technology filled with a sense of urgency. “Those enterprises that are only doing business on devices in tablet market will be having a rough time,” said Wang in telephone, “Those pure-play with terminal equipments will not have profit space even Samsung, HP and Lenovo will face a great impact.”

As a second brand of tablet PC in the world, Samsung needs to reconsider about price reduction, said the vice-president of Samsung mobile business, Lee Don-Joo.

Motorola is under much more pressure. The price of lately launched Xoom is 799 dollars which is higher 300 dollars than Apple’s some type products. Lenovo’s Le Pad is sold at the price of 4000 RMB at Taobao.com even it has not yet on the market. The price is also higher 300 RMB than 32G iPad.

“Apple is squeezing counterparts out of the tablet market,” said Wand. In addition, Hangwang’s new tablet has to reduce on price. What’s more, some local enterprises, especially who produce imitation products are to withdraw from the market. Because Apple has already occupied 70 percent market share at the moment.

Gartner’s report added panic brought by Apple. The report said that 2011 global PC shipment is predicted to be much lower than previous anticipation resulted from the impact of tablet.

However, some people this is not a big deal. An agent of Pierre Cardin tablet said that the closure property of Apple platform will make it not be the domination in tablet market.

It seems that Apple takes full advantages of industry chain including techniques, prices and service platform. But there are many aspects in Apple’s products which are not able to serve Chinese need. It may be able to content with Apple when other enterprises spare effort on the functions and services of localization. The related integrated circuit is CAY10-000J4LF.

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