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Wednesday, June 22, 2011

Analyst: Necessary price reductions compete with Apple IPad

Tablet makers who want to compete with Apple have cut prices of their products, Richard Windsor, world specialist in technology at Nomura Securities, said in a presentation at the Summit of Mobile opened in London on Thursday.

The problem for providers such as Samsung, Motorola and HTC is that their products are simply not as good as what Apple has to offer with the iPad and the ecosystem around him, according to Windsor.

If price Don't come down, vendors will continue to have difficulty to sell their products, larger amounts because consumers will buy an iPad instead. Prices have to come to somewhere in the region of US $300 before vendors will "start seeing some significant volumes", said Windsor.

An important element is the cost of screens, and Samsung, which makes the screens for other manufacturers and its own tablets Galaxy on Android, is about to increase its production capacity. Which translates to less expensive screens, to help vendors to reduce the costs of their products in a significant way, according to Windsor.

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