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HTC: Low-end tablets aren’t profitable

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Nexus 9

HTC has snubbed low-end tablets, saying there’s more opportunity for profit with mid- to high-end slates.

The Taiwanese firm has avoided the tablet game for a while now, although it made a half-return with the recent launch of the Nexus 9, a Google co-built device.

Jack Tong, HTC’s North Asia President, said “It’s not a profitable market” referring specifically to ultra-low-cost tablets.

There is actually a bit more room for growth and product differentiation in the high-end and mid-tier tablet segments.

Tong described how larger smartphone screens have led to confusion amongst consumers for tablets measuring in at around 7-inches.

We recently discovered that Apple’s iPad Air 2 costs just £207 in parts to build, but sells at £559, revealing just how incredible premium tablet profit margins can be.

Tong’s industry revelations came at a press conference in Taipei to show off the new Nexus 9 tablet.

The 8.9-inch slate launched in the UK this week, and has taken up pride of place as Google’s flagship tablet, replacing its predecessor, the Nexus 7.

Read More: Samsung Galaxy S6 release date

Via: Focus Taiwan

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