Average Price Consumers Willing to Pay for a Tablet Has Dropped by 18%

For Apple, it has been the best of times. For its competitors, well, the good news is that it has been worse. In the U.S. and, really, the world, there are two tablet markets. Apple sells millions of tablets in a debut weekend; its competitors sell, collectively, millions of tablets in three months.

iGR's ongoing U.S. consumer research suggests that there are three types of prospective tablet customers: those who want an iPad, those who do not and those who are not sure. There is very little an Android OEM can do, for example, to win over someone interested in an iPad. The path to unit sales growth for that OEM -- be it Android, QNX or Windows -- is to win over the undecided crowd or win over someone interested in a competitor's product.

iGR's latest research shows that in May 2012, 54 percent of consumers reported using an Apple iPad down from 64 percent one year earlier in May 2011. Conversely, Android penetration has risen from 13 percent in May 2011 to 32 percent in May 2012, mainly due to Amazon's Kindle Fire.

The latest research also shows that the average price consumers are willing to pay for a tablet (of all types) is approximately $275. In March 2011, the average price survey respondents were willing to spend was approximately $335 -- the average price intenders are willing to pay has therefore dropped by $60 in 12 months. Note that both these values were calculated on similar price ranges and reflect the average price regardless of the type of tablet the respondent was interested in.

"Price is still the leading factor that impacts tablet purchase but consumers appear willing to pay more for an Apple iPad," said Iain Gillott, president and founder of iGR, a market research consultancy focused on the wireless & mobile industry. "Battery life is the second leading buying factor for a tablet, ahead of the speed of the processor and other factors, including the size of the screen."