PC manufacturers such as Dell and HP have admitted defeat and given up the tablet business, reports DigiTimes, leaving Amazon, Barnes & Noble and Apple to dominate the tablet market.
The PC makers are abandoning the tablet business largely because they now realize that best-selling tablets aren’t all about hardware – they’re about content. And considering that Apple, Amazon and Barnes & Noble are content kings, they likely have the biggest advantage.
Tablet manufacturers typically profit more off of content than they do off of actual devices, which may be why Amazon is able to offer their Kindle Fire at $199 – less than the cost of its components. Content providers simply earn more money from their devices than hardware manufacturers alone.
One need look no further than the HP TouchPad to see that what really matters in the tablet market is having a developed ecosystem – that means having plenty of content, a compelling and simple user interface, and a strong development community. Without these things, any device is doomed to eventual failure.
With many tablet makers now stepping out of the business, perhaps we can expect something better from the tablet market – maybe devices that compete based on content and user experience, and not just crappy chunks of hardware wrapped in cheap plastic.