Why a $35 Tablet Would Never Succeed in the U.S.

I have to admit that I am dazzled by the media coverage of the launch of the Aakash, the world's cheapest tablet. It will cost $50 per unit for the Indian government, $60 in retail and possibly as little as $35 once the volume increases. When we are able to contain our jealousy, however, it's easy to see that this tablet is neither a discounted iPad nor a product that could succeed in the Western hemisphere, despite its impressively low price.

More than a year ago, when it was announced that India would be developing a $35 tablet, many of us were quick to question the ability to take such a device from an idea to a commercial product. In the end, we all know what happened to the OLPC, which was supposed to sell for $100 but finally sold for $190. The Aakash took a similar path, as the retail price of the device is now almost twice as high as the original target price.

The Aakash tablet is designed by Canada-based Datawind and comes with a 7-inch 800x480 pixel display, 256 MB of RAM, 2 GB of NAND flash storage and a 366 MHz Connexant processor. There is also an SD expansion slot with two versions. One has Wi-Fi only, whereas the more expensive $60 version has SIM card-based GPRS cellular connectivity.Datawind said that the total price of the base model is $38, but it is actually $50 when additional fees such as local taxes and a replacement warranty are included. The Indian government apparently guaranteed a purchase volume of eight to ten million units by March 31, 2012. The first 100,000 units will be built within the next six weeks in a factory in Hyderabad.

Higher-priced versions of the tablet will be coming to the U.S. in the future. This makes absolutely no sense to me. Would you buy a $35 or... Let's be realistic. Would you buy a $60 tablet that features the specs mentioned above? You may buy one, but I doubt that you would enjoy using it beyond the first few minutes. I need to expand on that.

Without having touched it, I am convinced that the Aakash is one of the best-designed computers I have seen in a long time – at least since Intel's bug-free computer. (That computer was offered in the early 2000s and was designed for rural Africa with features to keep insects out of the case. In addition, it could be connected to a car battery.) The Aakash tablet is a computer with a strong regional and cultural focus that caters exactly to the needs of a very specific group of people.

India has a population of about 1.14 billion people. The latest telecommunication data I could find from the Telecom Regulatory Authority of India indicate that 81 million of them, or 7 percent of the population, access the Internet today via wired or wireless devices. Only 9.45 million, or 0.8 percent of the population, have access to a broadband connection to the Internet. If only 7 percent of the Indian population access the Internet today (actually, the data go back to 2009), then we can conclude that Internet access is still a rarity in India. In comparison, 74.1 percent of people living in the United States access the Internet today and about 37 percent browse via a broadband connection, according to Nielsen.

It is clear that Internet access works differently in the U.S. than it does in India, and India will need, at least for now, different means to provide its population access to the Internet than does the United States. Let's go a little further by looking at wired versus wireless telecommunications in India.

The Telecom Regulatory Authority of India states that there were only 36.2 million wired phone connections in India in 2009. Keep in mind, there are 1.14 billion people – and only 3 percent have a wired telephone. The reason is the extent of rural areas in India, which has given the country a good reason to focus on wireless communications. According to the Telecom Regulatory Authority of India, there are currently 635.5 million active cell phone subscribers in India, which translates to a market penetration of 54 percent. People in India are used to paying way too much for their ability to communicate wirelessly (much more than we think we are paying for our communications). A typical smartphone in India costs about as much as it does in the U.S. – about $600 without a contract. However, the average income per capita in India is just $1,039 per year, which means that advanced communications via a mobile computer that is more than just a feature phone will require people in India to invest more than half of their annual income into such a device. Would you be willing to do that here in the U.S., considering that our current average income is $46,381 per capita?

There is a real need in India for a basic, low cost Internet device that may also serve as a cell phone – one such as the Aakash. An expenditure of $60 is about 6 percent of the annual per capita income in India, which is far more acceptable. It is comparable to about $2,800 here in the U.S. It isn’t cheap, but it’s better than $25,000.

In India, the Aakash almost certainly has a bright future. It perfectly fills a need and provides an affordable way to communicate and access information on the Internet.

In the U.S., it is a different story. You can imagine the first reviews with complaints about a terrible display, lack of storage space, slow processor and cheap materials. We have different expectations, and while it may be cool to own a $35 or $50 tablet initially, it has an older version of Android where you will need a vastly more capable device to run the applications in which you may be interested. There are no such expectations in India. You can't miss what you don't know, and you will be happy with it if it enables you to do more than you could before. The Aakash will enable millions of people in India to access the Internet – people who could not have previously afforded Internet browsing. Also, imagine the new ways of wireless communication it may facilitate.

A $35 or $50 tablet is what India needs today. In the U.S. this tablet would definitely fail.


India Unveils Ultra-Cheap $60 Tablet For Students

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  • captaincharisma
    it wouldn't succeed because it does not have an apple logo on it an cost an insane amount of money.
  • The title of the article is indeed "Why a $35 Tablet Would Never Succeed in the U.S." is it not.

    Very poor delivery on the article. You're nuts if you think a tablet at a cost of $35-50 with whatever lame spec won't sell for that price in the US. You can sell used clothing (underwear) on eBay in the US for that much. Many eat out at lunch at $10-15 per shot per day. Many rack up extra $50-60 on their cell phone per month because they went over their allotted plan time. And you think this product won't sell in the US? You've attempted to use stats to argue your idea that this tablet wouldn't succeed in the US. In fact, the stats you use have nothing to do with whether it can sell at all in the US. What do I care about per capita between the two countries! Where the heck does $25,000 dollars come into play? What does that have to do with selling the product in the US? Are you saying that we in the US are too good for this product, that we shouldn't purchase such a petty thing?

    The product is probably limited to poor web browsing, but you can count me in for a few. You think every parent can afford the typical $400-$500 tablet product that is sold here in the US, let alone parents that have a few kids. The economy still sucks, and many families are still defaulting on their mortgages. This is the perfect tablet that many parents have dreamed about for their young children. How many parents out there concede that their children, regardless of age, are rough with the things you've purchased for them. How many of you parents that can afford the $400-$500 tablet are cautious when you're little ones are around when using it?

    Like others have mentioned, poor school systems could make use of it. Not only that, there are industries out there that run customized linux applications/products for stock keeping, inventory tracking, JIT delivery to assembly systems, etc. I could see companies outfitting their workers in a store like Home Depot to check inventory on a product for a customer. You don't need a Tegra 2 to accomplish this. And typically, this product could act as a terminal to the main control/server. You think a company wants to spend $400-$500 over $35-$50 to accomplish the same goals? You think companies care whether Angry Birds is going to perform poorly on the tablet?

    What makes a good article is one that doesn't lead the audience to YOUR decision (especially when the facts don't even support the intent of the article), but rather provide the facts so that the reader can make their own. Stick to reviewing the product only.
  • captaincharismait wouldn't succeed because it does not have an apple logo on it an cost an insane amount of money.

    Ahahah, its funny cause its true. Slap an Apple logo on that bad boy and it'd sell like hot cakes.
  • Other Comments
  • captaincharisma
    it wouldn't succeed because it does not have an apple logo on it an cost an insane amount of money.
  • captaincharismait wouldn't succeed because it does not have an apple logo on it an cost an insane amount of money.

    Uh, ok buddy...

    It wouldn't succeed since the US is a society that is content-hungry and this thing couldn't possibly deliver and meet the expectations of an average US consumer.
  • I noticed that the writer mentioned that about 37% of the US population actually can access the internet via broadband connections, actually that sounds like the developing world to me. Oh wait I forgot the US actually has become the third world over the past couple of decades in almost every way.