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Could this Product Hold Back Growth of Apple Inc. (AAPL) iPad?

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At this point, there is no denying the fact that the Apple Inc. (NASDAQ:AAPL) iPad and iPad mini lead the tablet market. Does this mean the competition is going to rollover and let Cupertino rule the market well into the future? Of course not. The battle is just now beginning to heat up, and it is safe to say that Apple’s many competitors are going to use every trick in the book as a means of grabbing back market share.

Apple Inc. (AAPL)When it comes to competing on features alone, no company has been successful in taking on Apple Inc. (NASDAQ:AAPL). With that being said, there are other ways for the competition to make a dent.

For example, there is a good chance that cheaper tablets are going to make their way to the market at some point in the near future. And in the context of this story, cheaper really means cheaper.

Digitimes recently took a closer look at the potential for a $99 tablet coming to market by the third quarter of 2013:

“With Asustek’s new 7-inch MeMO Pad HD 7(8GB) priced at around US$129, sources from ODMs believe that other brand vendors are likely to follow suit and US$99 tablets will have a good chance of appearing in the retail channel as soon as the third quarter.”

There is no guarantee that a cheaper tablet would threaten the Apple Inc. (NASDAQ:AAPL) iPad, including its future growth. That being said, it would definitely give consumers a cheaper alternative. Subsequently, Cupertino would have to consider its price point and how it fits into the market.

The article went on to add the following:

“The sources pointed out that many brand vendors are interested in how Asustek was able to offer its tablet at US$129 and feel pressured by the price. Prior to the MeMO Pad HD 7, Acer’s Iconia B1 was the cheapest 7-inch tablet, featuring a dual-core processor and priced at US$149.”

Pricing is always a big deal, especially in the smartphone and tablet markets; however, consumers also want to know that they are getting a device that is able to meet all their needs. This may be where Apple Inc. (NASDAQ:AAPL) continues to hold its advantage.

It will be interesting to see if these cheaper tablets are introduced later this year. If so, we will be keeping a close eye on the impact it has on the Apple iPad.

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