Tough Price Competition In 7-Inch Tablet Market Could Damage Profits

There is a war coming. A wide array of tablet sporting 7 or 8 inch displays is set to crowd the market in the summer, coming from a multitude of hardware vendors, and covering all three platforms.

Everyone from Microsoft to Apple, Samsung to Google, Dell, Acer, HP and more are prepared to offer their best solutions in order to make their mark and convince as many users as they possibly can to choose their devices — and ultimately their chosen platform.

Windows, iOS and Android are gearing up for the decisive battle.

Apple is all set to unleash a new version of the iPad Mini, which will duke it out with a number of 7-inch Android slates. Microsoft, too is prepared to join in the fun with some Surface Mini models, that are reportedly said to use an 8-inch display powered by Windows 8.1 and Windows RT 8.1

The increased acceptance of smaller consumer slates has upped the stakes in the tablet market, with many analysts expecting these devices to fly off the shelves — more so if they are aggressively priced.

But this has also led to the speculation is that an unnerving price war is just around the corner.

A price war that could potentially turn the tablet market into a bit of a financial circus. Good for consumers, but damaging for hardware makers as companies like Samsung, Acer, ASUS, Qualcomm, and many others will have to scamper to strike a balance between performance and sub $200 prices.

Sub $200 because companies like Acer, ASUS and HP are all too keen to sell tablets for as little as $170, eating into profits.

Then again, some believe that this is justified — lower prices lead to higher sales, of course. Plus the increased sales (as a result of these price cuts) also increase awareness of the brands, which ultimately is the goal for a lot of these technology companies.

It remains to be seen how Microsoft tackles this fierce competition, and at what price points do the smaller Surface tablets make their debut. But one thing is certain; the landscape will not be the same once next year rolls around.

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