99 Dollar Tablets Are Here

99 Dollar Tablets Are Here

Research  these Stocks on Kapitall’s Playground Now

 
research now

Acer is breaking the price barrier for tablet computers. WSJ reported that Acer will release a tablet for just $99 in 2013. When Apple’s (AAPL) iPad was launched, the $500 tablet was the baseline. Although Apple still dominates in this space, in North America in particular, smaller players want to compete in the lower-priced segment.

Consumers in the United States may not get the option to buy a tablet for $99, since Acer is focusing primarily in the emerging markets like China. The low-price point is still something to be concerned about for investors. PC makers, facing strong competition in developed regions, are relying on emerging markets for overall unit sales growth.

The seven-inch tablet has the following specifications:

  • 1024×600 resolution
  • 1.2Ghz dual-core processor

The tablet available at nearest this price-range is Barnes & Noble’s (BKS) Nook, which sells for $139. Amazon’s (AMZN) Kindle Fire sells for $159.

Analysis:

There is growing demand for 7-inch tablets, which will only accelerate as the price moves towards the lower end. Apple recognized the threat, and began selling a mini-iPad starting at $329. Although the iPad mini costs $188 to build, Apple is unlikely to lower the price of its device. Consumers are still more than willing to pay a premium for Apple products.

Still, Google’s $199 Nexus showed consumers are willing to buy a tablet at higher prices. The 8GB Nexus 7 continues to be unavailable at the Google Play store, due either to limited supply or excess demand. The $249 model (with 16 GB storage as opposed to 8GB) is more readily available.

Cheap tablets will continue to put pressure on PC makers, but time will tell on when companies like Dell (DELL) or Hewlett-Packard (HPQ) will make inroads on improving profit margins. Microsoft (MSFT) defined a baseline for Windows 8-based tablets with its Surface RT release. It will be up to the hardware makers to promote productivity and the benefits of a keyboard-based device.

The main challenge for hardware makers is lowering the price point for ultrabooks and tablets so that they are more competitive with tablet devices.

Business Section: Investing Ideas

Companies mentioned in this article are a starting point for investing ideas. Expect interest to rise for companies focused on content distribution: Google and Barnes & Noble could command higher price-earnings multiples as investors lower their interest in the hardware space.

1. Hewlett-Packard Company (HPQ, Earnings, Analysts, Financials): Offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $27.6B, most recent closing price at $14.04.

 

2. Dell Inc. (DELL, Earnings, Analysts, Financials): Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap at $17.7B, most recent closing price at $10.19.

 

3. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $484.51B, most recent closing price at $515.06.

 

4. Barnes & Noble, Inc. (BKS, Earnings, Analysts, Financials): Operates as a content, commerce, and technology company in the United States. Market cap at $859.57M, most recent closing price at $14.35.

 

5. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $112.47B, most recent closing price at $248.31.

 

 

6. Google Inc. (GOOG, Earnings, Analysts, Financials): Google is the world’s most popular search engine. Market cap at $232.08B, most recent closing price at $706.29.

 

 

Written by Chris Lau.

To interact and discuss these picks or picks of your own with users, attach your watch list or portfolio in a message to your friends on Kapitall. To connect with users on the leaderboard: fromyour tool bar, select Get Connected -> Top Kaptallists.

Members on Kapitall earn free points, and even more points with every Kapitall Generation trade. These points may be redeemed at the Kapitall store.

 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

 

playfor100kwirebanner2png

2 Responses to “99 Dollar Tablets Are Here”

  1. Harold Gardner says:

    Looks pretty reasonable to me as a reader and an emergency web access device. It would stink if you wanted to do videos or other multimedia, but I have been happy with a couple of different cheap Acer boxes.

  2. The triumph of online video game Flappy Bird ruffled certain feathers, and the treatment directed its creator, Dong Nguyen, to pull it from online stores. The WSJ's Adam Najberg explains what happened behind 's Mr. Nguyen's option. His game, which grew to become a global sensation, in latest weeks rised to the leading of the graphs in Apple Inc.'s App Store as well as Google Inc.'s Play, transforming the blushing 29-year-old Mr. Dong into one thing of a sensation among small, individual game companies. His notoriety grew more when he mysteriously withdrew the totally free video game from circulation Sunday at the top of the success.

Leave a Reply

Protected by WP Anti Spam

playfor100kwirebannerpng