The new tablet named the Hudl was released on Monday. Tesco is not releasing an inexpensive tablet but rather a competitive high-spec offer with the latest Android operating system, a HD screen, expandable storage and a processor that is 1.5 GHz.
The device is 7-inches and is similar in looks to most other small tablets with the Tesco information hidden below its logo.
Today tablets are now everyday items when just three years ago, Apple launched its first iPad and kick started the new revolution. Some industry insiders now think sales of this flat board computer will overtake PC sales before the end of 2013.
Less expensive prices will help that trend to accelerate, but it is amazing how any profit can be made on a Tesco Hudl selling for just $189.
If you remember, it was the kindle that sold for $249 and Amazon’s CEO Jeff Bezos said the company was not making a cent of profit.
It seems that each time another company enters the tablet fray that components become less expensive and price points for similar items can be lowered.
One would think the market leader, Apple, would suffer from this, but its iPads keep selling like hot cakes and are very profitable.
Apple remains very desirable and its shrinking share should not worry them as long as the profit margins remain high.