Overcrowded Markets

“The Android tablet market is already overcrowded, and the new products at CES 2012 aren’t improving the situation. Will Android tablets ever be adopted on a wide scale?”, wrote Scott Raymond

Chuckle. The Android/Linux market is only overcrowded to those who are trying to sell that other OS on x86… Newsflash: The world does not owe those who sell that other OS and x86 a living. Free markets work. Manufacturers are making Android/Linux on ARMed tablets and selling them. They make money doing that because there’s no “tax” from M$ and they are not paying twice for the CPU. They will see the same thing on the desktop/notebook markets as well. With a free market, these makers can minimize the cost of manufacture the way sane manufacturers in other industries do.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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10 Responses to Overcrowded Markets

  1. Dann says:

    Aren’t overcrowded markets good for the consumer? You know, with choice and ease of entry? Sounds more American than one large corporation dictating how people should use their own property.

  2. Yonah says:

    From what I’ve seen, most often the case is a young student who simply doesn’t have the space to set up a PC or can’t afford a laptop. A girl I know is one of six girls in a single dorm. Her parents are farmers and she doesn’t have a job. So her phone is the only thing she can use, mostly just to chat on QQ. She told me she would prefer to have a laptop and hopes to get one in the future. What percentage of that 15% are like her? How many of that group dumped their PC or laptop in favor of a smartphone or tablet?

  3. Clarence Moon says:

    “You are not allowing that the hardware starts with 400+ percent markup”

    Another product of your fertile imagination, Mr. Oiaohm! Why do you make up these silly lies?

  4. oiaohm says:

    Clarence Moon and shockingly 25% to 35% of there base price is still a 5 to 10 percent profit to hardware makers.

    The hardware makers are not making a loss out of this. No as high as profit as they like but not a loss.

    Hardware makers have had some true losses with Windows Phone 7 devices where they had to be crushed. Even discounted they did not sell.

    You are not allowing that the hardware starts with 400+ percent markup.

    Your define of falure is way off.

    The discount bin in not a full failure. Have to crush/recycle them because no one will buy them that is a failure.

    “That’s a lot of Windows licenses, you would have to admit.” That is the problem 50 percent of the machine sold must be sold without a Windows license by MS own sales numbers compared to PC made.

    So either a huge amount of illegal or a huge amount of something else who knows.

  5. Clarence Moon says:

    I know a lot of people, myself included, who have phone and/or tablets that they use to access the internet and even do other tasks. Just last Saturday night the wife of the couple we went to dinner with used her iPhone app to figure out the tip for the waitress. They have a brand new HP all in one PC, too. Apparently you yourself do not actually know anyone who has a smart phone and/or tablet who has no PC as well.

    If it is true that 15% of Asians do not use a PC anymore, it is also true that 85% continue to use one. There are an awful lot of Asians and more of them every day, I understand, so I think that, overall, PCs would be increasing at a rate equal to 85% of the growth rate of the Asian population. That’s a lot of Windows licenses, you would have to admit.

    I also believe that the people who are in the device manufacturing business do not measure success in terms of unit volume produced, but rather in terms of profits from the sale of the devices. When most of their production is being put on the surplus market at 25% to 35% of their original target price, that is not a success; that is a total failure. The overhang of all those units stifles the rest of the market, too, making retailers leery of hold much stock and distributors from committing to large orders.

  6. oiaohm says:

    Clarence Moon dos vs apple. Same case of PC class hardware turning up in never ending fire sales. Microsoft did win in the end right.

    So what is different this time.

  7. Kozmcrae says:

    “I’ve said it a number of times before, but it is still true that the x86 PC market is distinct from the ARM based tablets and cell phones.”

    That’s all you do Clarence, is repeat yourself, over and over and over….

  8. Clarence Moon wrote, “many Android tablets released last year never succeeded as a product”.

    That’s silly. Almost all such products will be well-tested before release to market and they do find buyers. That’s success. Manufacturers have had labour shortages trying to keep up with demand. Far more were shipped than expected. Early estimates for 2011 were 45 million but more than 60 million shipped. iPad shipped only about 60% of them even with a huge advertising campaign. People bought gadgets, not advertising.

    “The tablet PC category expanded its role in the mobile PC market, with shipments of 72.7 million units, accounting for 25.5% of mobile PC shipments in 2011, according to the latest NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report. “

    I think M$ would have loved to have sold another 72.7 million licences…

  9. Clarence Moon wrote, “I do not know of a single person who has a smart phone and/or a tablet who does not also have one or more x86 PCs. Do you?”

    I know people who use the smart phone in place of a desktop/notebook PC. They may have a desktop/notebook PC still but that’s because smart phones weren’t up to much when they bought the unit. Young people can do everything they need to do in a smart phone:

    *e-mail, check,
    *GPS navigation, check,
    *FaceBook, check,
    *find a movie, restaurant, fishing spot, check,
    *play music/video, check,
    *take pictures/video, check, and
    *oh, yes, and they don’t need a land-line.

    In Asia, the “PC”-less mode is catching on with about 15% of users of computers. It works. Many people get more for less with a smartphone. My son is close to going PC-less. He can get the answer on the thing before he can sit down at a PC.

  10. Clarence Moon says:

    I’ve said it a number of times before, but it is still true that the x86 PC market is distinct from the ARM based tablets and cell phones. I do not know of a single person who has a smart phone and/or a tablet who does not also have one or more x86 PCs. Do you?

    Raymond’s point is that the many Android tablets released last year never succeeded as a product except for a handful of models from Amazon, Samsung, and a couple of others. If you check CompGeeks or similar surplus sites, you will find many Android tablets in their never ending fire sales.

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