In the US, at $199 it offers quality hardware and shows
exactly what a budget tablet should deliver. The iPad Mini has a bigger
screen, many more apps which are suitable for the tablet size, and a
better build quality but costs $329. The price difference is pretty big
and the Mini isn’t a clear winner.
Expecting the Nexus 7 to be available at a direct dollar
to rupee conversion would be too hopeful, of course – otherwise we’d be
getting it for around Rs.10,000. Taking into account customs duties over this price though, it still works out to under Rs.12,500.
And Asus is based in Taiwan, so technically, they could be selling the
device for even less since $199 includes US taxes.
That doesn’t take factors like logistics into account though, but a price of Rs.15-16,000 or a little more would have been ideal for most, and it’s what most industry watchers have been predicting. At Rs.19,990,
the Nexus 7 starts to cost pretty close to what one can expect from the
iPad Mini. Based on the cost of an iPad 2 in India, and on the price
difference between the iPad 2 and the iPad Mini in the US, it seems
likely that it will be available for Rs.20-21,000, which isn’t much more than the cost of the Nexus 7.
So why is the Nexus more expensive here? The reason is
simple – Google sells the Nexus 7 in the US, where it subsidizes the
cost of the device. Google (like Amazon) has gone on the record to say
that they’re selling the tablets at cost – they’re not out to make a
profit on the hardware itself, but rather, to grow their ecosystem of
users, and to build value for developers. The company will recover the
money through gains in Android over time. Amazon’s strategy of selling
Kindle’s at cost to market their library of books, movies and music is
similar.
In India though, Google isn’t selling the Nexus 7, Asus
is. They don’t have the option of taking the money back over the long
term – Asus has to make a profit on the units sold, or they won’t be
able to keep selling them. And that means that the Nexus 7 is available
for Rs.19,990.
Is this a good price for India? Not really, but there might have been
other factors which haven’t come to light as yet, which limited the
pricing options available to the Taiwanese manufacturer. And for now,
the iPad Mini being around Rs.20-21,000 is also speculation, so it might yet be a competitive price.
0 comments:
Your feedback is always appreciated. We will try to reply to your queries as soon as time allows.
Note:
1. Make sure to click the "Subscribe By Email" link below the comment to be notified of follow up comments and replies.
2. Please "Do Not Spam" - Spam comments will be deleted immediately upon our review.
3. Please "Do Not Add Links" to the body of your comment as they will not be published.
4. Only "English" comments shall be approved.