At the CES 2011 trade show, there were approximately 50 new tablets announced (5”, 7”, 10”). This rapid introduction of new products is occurring because there are several companies providing ready to build reference designs for tablets and portable media players. This means that almost any company can become a tablet producer. At the CES show, I saw several companies that were previously producing LED lights (relatively low tech) which were now producing Android tablets which were promoted as Internet TV viewers.
Companies that provide tablets are now competing in hyper-competitive industry with many companies that offer similar products. Because the cost to develop and produce these products are almost the same, product differentiation must occur in different ways.
Several of the android tablet manufacturers that I interviewed at the CES show included TV channel directories for their products and unique application stores. The TV directory listings were provided for free and commonly focused around a specific country or region. The added customer for these TV directory listings is the simplification of discovery and connection to streaming TV channels. Providing access to unique Android applications can add new features and services that the customer can use.
Unfortunately, these business models offer little sustained competitive advantages or revenue streams. To add significant content value, Android tablet manufacturers can sponsor creators of content (such as specialized sports or food channels) that may be exclusively made available to their tablets. Another key option is to focus more on providing applications in a universal marketplace that includes offers or branding information for the table.
Android Tablet Survival – Unique Value Additions
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