Hewlett-Packard (HP) recently lowered the prices of its 16GB and 32GB TouchPad tablets sold in the US by US$100 to US$399 and US$499, respectively.

HP's price reduction comes after Acer slashed its 10-inch Iconia Tab A500 tablet PCs in the US from US$449.99 to US$395 late July, the sources indicated.

A high degree of homogenization in hardware and software specifications, including the adoption of Nvidia Tegra 2 CPUs by over 70% of non-iPad models and the dominance of Android, is one of the reasons that vendors have to cut their prices in order to boost sales, the sources noted.

Dell's recently launched Streak 10 Pro tablet PC, which also comes with a Nvidia Tegra 2 CPU and runs on Android 3.1, is comparable with models launched by Acer, Asustek Computer or other vendors and nothing is unusual, indicated the sources.

The 16GB version of Streak 10 Pro is available at CNY2,999 (US$465) in the China market currently, said the sources, adding that Dell is likely to be forced to reduce its quotes in about a month.

The planned launch of Google's Ice Cream Sandwich tablet PCs and the availability of Nvidia Kal-EI quad-core chips may help boost sales of non-iPad tablet PCs in the fourth quarter of 2011 but could also intensify competition in the segment in 2012, the sources commented.

By: DocMemory
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