Thursday, August 27, 2015

BSNL’s tablet may force big players to slash prices

Now, there is competition for the Aakash tablet, with BSNL gearing up to launch three tablets in a tie-up with Pantel, a Noida-based firm, and this move could prompt a slashing of price by big players like Apple and Samsung.

The cheapest one among the three would come for a steal, that is, Rs 3,250, which is only a tad more than the commercial variant of the Aakash tablet.

The Aakash Tablet
The low-end T-PAD IS701R comes with a 1 GHz processor and 256 MB RAM and is Wi-Fi enabled. The 2 GB memory (built-in) can be expanded by up to 32 GB.

It comprises a resistive screen and operates on the Android operating software. BSNL plans to pack a punch by selling the tablet with special data plans along with 3G services.

The second variant, the T-Pad WS704C, comes with 512 MB DDRIII RAM and can be connected to TV through HDMI.

The high-end T-PAD WS802C is propelled by a 1.2 GHz processor and 512 MB DDRIII RAM along with a Global Position System (built-in). The top two variant tablets, which are comparatively stiffer, will come for Rs 10,999 and Rs 13,500.

Both of these come with capacitive screen, which paves the way for better touch sensitivity. These two tablets will also be made by Pantel, which has already started taking bookings for the three tablets.

So, what impact will these extremely-low priced tablets have on companies like Samsung, Apple and Motorola, which have tablets priced around Rs 30,000?

The entry of BSNL and other low-cost tablets will definitely eat into the markets of these mega players in a big way in a highly price-sensitive market like India.

At one point, it may be so that these big players could be forced to slash prices by over 30 per cent.

Say, if a tablet now comes for Rs 30,000, it won’t be long for it to be priced at Rs 20,000. The timeframe for this could be another six to eight months.

If these big players are still rigid on prices, some of them may have to discontinue their products.

But BSNL may have to make the cheapest tablet at par with Aakash’s, which is priced at Rs 2,250, in order to vie in the low-end market.

So, the only way out for the big players will be to cut prices if they want to take on BSNL as well the makers of Aakash.

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