Analyst: Tablet Makers Severely Overestimating Demand

by Reads (4,766)

2011, the year of the tablet, might see a market that is completely oversaturated with devices according to one analyst. Fred Hickey, of “The High-Tech Strategist” newsletter, feels that essentially every upcoming tablet producer is overly optimistic about the possibilities the market holds.

Commenting on the current state of things, Hickey writes:

I’ve seen a lot of crowded tech categories before, but this is comical … There are an estimated 80 to 100 new tablet models in development. Every PC maker (HP, Dell, Lenovo, Toshiba), every mobile phone producer (Samsung, LG, Nokia, Research In Motion, Sony Ericsson, Huawei, ZTE), every Asian network builder (Acer, Asus) and even the second largest seller of TV sets in the U.S. (Vizio) are planning to unveil new tablet models in 2011.

Price Cuts Coming?

Hickey goes on to predict that this surplus of tablets will lead to extreme price cuts, as companies try to stop the fiscal hemorrhaging caused by their shortsightedness. The Samsung Galaxy Tab already displayed a tablet undergoing significant price drops during its run, and perhaps something similar could happen to the Xoom’s $800 price tag.

The overpopulation of the tablet market and whether it truly is overpopulation, or if market demand rises to the occasion, should take shape soon. The floodgates are about to open, with the Motorola Xoom launching in a week and many more releases planned for March, April, and this summer.

Rather than imagining a ruined, unrecoverable tablet market, for the time being all should enjoy what Hickey refers to as “the unbridled optimism phase for tablets.”

Sound Off

What do you think? Is the tablet market going to crumble under the weight of its own devices? Or will the market flourish with the abundance of options and variety? Sound off in the TabletPCReview forums.

Source: Forbes



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