7-inch tablets

When Steve Jobs dismissed the netbook traditional PC manufactures must have thought he was mad. Then he created a new market for the touch tablet with the iPad. Before it’s release, tablet PCs were expensive, clunky and basically laptops with a stylus. They did not work well and in Jobs’ opinion the stylus got in the way.

On the other hand Netbooks, which were eating up traditional PC sales, were cheap, low-margin and built with outdated technology. In true Apple style, the market was flipped with an innovative product and suddenly everyone else needed to play catch up. And in an effort to match Apple on price and offer a ‘different product’, competitors have resorted to the 7-inch mini tablet. This has also been done to enter the tablet market with something rather than watch netbook sales be eaten by the tablet.

The 7-inch tablet is a poor compromise and yet it fills a need for a device between the oversized tabphones and larger tabs. It’s not likely that everyone needs one of each, however there is probably a market for a mid-sized tablet paired with a laptop. Much of the success Amazon has achieved with their Kindle devices is due to the size and portability. For those who don’t drive and instead rely on public transit in major cities, the iPad is a bit too big to use for media consumption (and the iPhone is a bit too small). Their is a market and purpose for these devices, and rumors swirl that Apple is cooking up it’s own iPad mini, with a screen sized down proportionally.

There are already a lot of 7-inch tabs on the market, now dominated by the Amazon Kindle Fire. Google has now released its’ Nexus 7 built by Asus, priced in the US to take on the Kindle Fire and available internationally unlike the Fire. They claim it’s being sold at cost, all a play to lock users into their ecosystem. Amazon wants to lock their customers into their ecosystem so their devices are built by them with their branding. Google has instead partnered with yet another manufacturer in order not to alienate all the companies supporting (and profiting) off Android. Why? Because those devices still send users to the Google Play store.

For Samsung with their often too-wide range of tablets, the Galaxy Tab 2 7-inch replaces several models and aims to compete against the Fire and Playbook, all for $249. Its’ main advantage over the Fire is the updated Android 4 OS, Ice cream sandwich, and probably worth the extra price. Reviews are mixed whether the Tab 2 is much of an improvement over the Tab 7 Plus since the Tab 2 display is a lower resolution. HTC pulled a similar stunt with their mobile phones, pushing out a cheaper device with a lower spec in order to remain competitive.

The simple fact is there are far too many tabs now on the market, most running variations of Android (and that one from RIM), and even too many from the same manufacturer. Sharp, Motorola, Sony, Lenovo, HP and a long list of OEM brands few will have heard from, each trying to profit of Google’s free OS. But there is not much worth buying at that end of the market. Actually if RIM wasn’t in trouble the Blackberry Playbook would have been a contender.

Apple is not known for cut-throat pricing. The latest rumors point to a $299 iPad mini, likely one with a better spec than the Kindle Fire/Nexus 7. Will consumers be willing to pay 50% more to stick with the Apple ecosystem? Yes, and it will sell well, but also slightly cannibalize full iPad sales. There are plenty of reasons for Apple to enter this end of the market. Only time will tell, but the best time would be this fall before the Christmas season.

Until Apple reveals an iPad mini, the Nexus is the best bet when under $200. For a better device look away from the Samsung Galaxy Tab 2; the sacrifices to lower the price have weakened its’ positives, best to pick up an original Galaxy Tab.