Can a Cheap Tablet Help Dell Beat Apple in China?
Dell (NASDAQ:DELL) is planning to create a cheap tablet to target the Chinese market, Peter Marrs, Dell’s Asia-Pacific director of sales, said at an event in Singapore on Thursday, according to Forbes.
Consumers in China are willing to sacrifice a bit of quality for a lower price tag. Generic-brand tablets as cheap as $60 running on Google’s (NASDAQ:GOOG) Android operating system have been popular in the country, and Dell is hoping that its well-known name could help it blow that competition out of the water if it can manage to offer competitive pricing. Dell has been selling electronics to consumers in China since 1998.
Apple’s (NASDAQ:AAPL) high-priced iPad has been losing market share in China to those cheap Android tablets, and Dell hopes its cheap tablet could move in on that void. According to research from IDC cited by Forbes, the iPad lost 28 percent of its market share in the country during the second quarter.
Even though devices running on Microsoft’s (NASDAQ:MSFT) Windows 8 haven’t done as well as Dell had hoped, Dell is betting that 8.1 will be an improvement and will likely use that software for the planned China-only tablet.