Friday, June 17, 2011

The Android tablet problem, nicely summarized by one review’s conclusion

This, not how closely a manufacturer can mimic the iPad’s hardware, is what reviewers should be asking about each new tablet: Why would a significant number of buyers choose this instead of an iPad?
I asked a similar question to the Zune pricing strategy team when we were about to launch Zune v2. The iPod was (and is) the King of the MP3 player market, and the social features of the Zune weren't features that would compel a customer to buy it over the iPod. The product needed further differentiation, and in my mind a lower price point would be the nudge that customers needed to try it.

My idea was summarily panned and the Zune launched at the same price as the iPod; when the price drop was eventually announced by Microsoft, the race was ever. The Zune was a great music player that didn't make it because it never reached critical mass. There is no point in being able to share a song with another Zune if there isn't another one within sharing range. Mimicking hardware isn't sufficient; it's selling the mimicked hardware to a sufficiently large group of people that's key.