Should This Concern Apple Inc. (AAPL) & Google Inc (GOOG)?

The Apple Inc. (NASDAQ:AAPL) iPad is anything but the cheapest tablet on the market. While Google Inc (NASDAQ:GOOG) does a better job keeping its prices down, it goes without saying that both companies need to keep a watchful eye on what the rest of the market is doing.

With the popularity of tablets on the rise, don’t expect the competition to sit back and let Cupertino continue with its big lead. Google has been trying to cut into Apple’s tablet market share, and others will soon begin to devote more time to doing so.

An Apple Inc. (NASDAQ:AAPL) Price War

Regardless of the product segment, one of the best ways for the competition to attack Apple is on the pricing front. In other words, cheaper tablets could go a long way in dethroning Apple or at the very least taking back some market share.

We have seen this from Google Inc (NASDAQ:GOOG), and it is a strategy that others are sure to employ.

According to a recent report by Digitimes, with information compiled by Joseph Tsai and Max Wang, Taiwan vendors are beginning to offer cheaper tablets as a means of expanding market share.

Do these tablets offer the same capabilities of those from Apple and Google? Probably not. What they do offer is a lower price, and that is what a growing number of consumers are most interested in.

Right now, the most popular tablet size in the Taiwan market is 7-inch. With the Apple Inc. (NASDAQ:AAPL) iPad in the lead, just like it is in many countries, tablet makers are setting their sights on this size.

Since Apple has yet to release its next generation device, there may be a sliver of hope for the competition.

Asustek, for example, is getting in on the action with its 7-inch MeMO series tablet, starting at $134. This is a far cry from what you would spend on an Apple tablet, or even one from Google Inc (NASDAQ:GOOG) for that matter.

Acer is also taking its crack.

The trend we are seeing in Taiwan may begin to expand into other markets in the near future. Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) will continue to be tested on price in the quarters to come.

These hedge fund managers seem to like where Apple is headed, regardless of what the competition is doing: David Einhorn, Christopher Hansen, Jeffrey Edwards, Mark Diker, and Stuart Peterson.

The following video shows off the iPad in greater detail:

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