Boston, MA 02/06/2014 (wallstreetpr) – Amazon.com, Inc. (NASDAQ:AMZN) and other big names in the tablets market might be forced to further cut their margins in this year in order to attract more sales. This will be a blessing for customers who will, due to the predicaments of manufacturers, enjoy premium tablets at just a fraction of the previous prices. But again that will spell doom for manufactures, more so those like Hewlett-Packard Company (NYSE:HPQ) that are already taking a serious beating from the weak PC market.
It is in fact said that the explosion of tablets was directly responsible for the decline in traditional PC sales. Tablets are however said to have helped uplift sales of low-cost notebooks, the only segment of personal computer that has been spare the decline embarrassment. Yet now, trouble is catching up with tablets, the very devices which authored the death of PCs. Unfortunately here now double victims are emerging.
Tablet market competition
The market for high-end tablets is almost saturated. Even the low-cost tablet market has had many entrants such that price war is the name of the game anywhere. In this case manufacturers are trimming their margins with hopes that they will attract more buyers. But who enjoys it when profit margins are cut to razor-thin levels? No body, much less struggling companies such as Hewlett-Packard Company (NYSE:HPQ) and Microsoft Corporation (NASDAQ:MSFT) that are turning to tablets and of late in the case of the latter, mobile business to shore up the shaky balance sheet.
Market watchers believe that this year, price cut on tablets will be seen across the board whereby vendors such as Samsung, Lenovo, Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard Company (NYSE:HPQ) and Amazon play accelerate sales.
The hotspot of competition
It is expected that tablet vendors will take their price war to emerging markets. By nature, these markets happen to be very sensitive to pricing and the highest bidder will be he who offers its tablets and the lowest prices. Perhaps this explains why prices of brand names tablets are expected to come down as low as $100. In fact, even high-end tablets like Samsung’s Galaxy Tab 3 Lite could sell for as low as $129.
Conclusion
When it comes to emerging markets, the game and approach strategy to the market must change for Amazon.com, Inc. (NASDAQ:AMZN), Lenovo, Samsung, Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard Company (NYSE:HPQ) and their peers in tablets business.
