Monday, September 10, 2012

Another Competitor Enters The Tablet Wars

The future of connectivity is the tablet and the field of sellers is becoming more and more crowded.  The newest entry will come from the toy retailer, Toys R Us and is called the Tabeo.  Working with the Google Android operating system, " the Tabeo comes pre-installed with 50 different apps that cover everything from games, to educational titles, to ebooks."

As a kid's tablet, it has some challenges.   "With competitors like the MEEP!, Vinci, and LeapPad already targeting kids, this is certainly a sector that might be over-served already."  And as kids become more and more internet savvy, they tend to migrate more quickly to their parents' devices.  A child's tendency may be to install these same apps on mom or dad's tablet and wait to they upgrade to a newer model in order to "inherit it".   At a price point of $150 for a Tabeo, parents might also consider purchasing the Kindle Fire, at a similar price point.  And depending how Apple prices its new mini iPad and lowers the price on older iPad models, Tabeo may have a heard time justifying its positioning.

The solution for Toys R Us is not in offering only the same apps from these other tablets on their devices, it is developing unique apps exclusive to their device that drive purchase behavior.  Differentiation becomes the marketing solution in the tablet market, not low cost.  LeapPad has that in their devices, the Tabeo would need to do the same.  The tablet wars are here and with many competitors competing for share, the competition is getting fierce.

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