Unlike Apple, supermarket giant Tesco is chasing the low end of the tablet market after releasing its own low-price tablet.
Hudl is priced at £119, which is £80 cheaper than Google’s Nexus 7 and less than Apple’s iPad Mini at £269 and Amazon’s £159 16GB Kindle Fire HD. This could be smart move by Tesco as cheap and related products are often a market opportunity.
What’s more, although Apple now accounts for 71% of total tablet shipments, according to US analyst firm Gartner, "basic" tablets are expected to account for almost 45% of new tablet shipments by the end of 2017.
Price-sensitive buyers tend not to need as many features as early adopters, says Gartner, and they will often settle for a simplified version of a new product, as long as it meets their needs and quality isn’t compromised.
So far, Tesco seems to be doing just that. Because Hudl runs Android, users can buy music and films from the Google Play store. Users will also benefit from special offers from its own site, Blinkbox, including a Clubcard TV, which offers free films and TV programmes, banking, shopping and more.
Marcus Chambers, VP and GM of EMEA at Good Technology, told CBR that these devices could also open up business mobility to the masses rather than the few.
"Imagine the transformative change to processes and outcomes if every employee could afford a mobile device. Not only would it generate a literal wealth of information but employees would use the devices in completely unpredictable ways," he said.
However, Tesco isn’t the only player in the low end market. Amazon’s 8GB Kindle Fire currently sells for £99, while Intel has also announced that its chips will be inside US tablets selling below $99 (£61) before Christmas.
Considering the list of things Tesco has failed to launch successfully, is it strong enough this time to take them all on? Let us know your thoughts.
