Acer's $99 tablet: Just what the world needs?

The PC maker reportedly plans to unveil a gadget that will undercut the gadgets that undercut the iPad

Acer, the world's fourth largest PC maker, is reportedly becoming the first heavy hitter in the industry to make a tablet that — at $99 a pop — will be inexpensive enough to be within reach of a wide range of buyers in developing countries. Chinese companies making no-name budget tablets should be nervous, says Eva Dou at The Wall Street Journal. "At seven inches with a 1024 x 600 resolution screen and 1.2GHz dual-core processor, the so-called Iconia B1 tablet will have somewhat similar specs to Amazon.com Inc.'s Kindle Fire and the Barnes & Noble Inc.'s Nook Color," but it will undercut their lowest prices by $40 (although the final shelf price might vary from country to country). Dou continues:

Acer's pursuit of lower-priced tablets will cut into its margins, but will help it secure a stronger foothold in the rapidly growing China market, said Daiwa Securities analyst Christine Wang."Chinese white-box tablet makers are expected to sell some 60 million tablets next year, so it is a really big market," she said. "None of the major PC brands sells a tablet right now priced to compete with them right now."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.