Brand Tablet Prices Leave Door Open For Shanzhai?

The iPad has shown that there is consumer demand for tablets, and in 2011 a whole lot of major brands will (finally) launch various models. When the iPad was launched it set the benchmark for pricing, with the expectation that Android tablets would be cheaper... cheaper even than the cheapest iPad. But as the major brands start releasing their pricing information, we’re finding that they’re setting their prices closer to the iPad range, leaving that sub-$400 area open for the Shanzhai.

Get ready to spend a minimum of $500 USD to get a good branded tablet. The cheapest iPad costs $499 USD. The LG Optimus is going to cost at least $700 USD. The Motorolla Zoom at this stage looks like it will cost around $800 USD. The Galaxy Tab is $600 USD. What happened to all the affordable tablets that were coming up?!

In a short period of time the Shanzhai tablet market has established a healthy industry with aggressive growth. The Shanzhai provide a lot of cheaper alternatives. What is more interesting is that almost all Shanzhai tablets can offer what the iPad doesn’t:  Flash, video camera, USB connectivity, etc.

The way things are shaping up, Apple and big computing, handset and consumer electronics brands are all going to compete around the $500-$800 mark, leaving the lower, almost consumable consumer electronics segment open for new-comers like the Shanzhai.