Analysts question Sony tablet pricing

In wake of HP TouchPad fire sale, analysts warn Sony of tablet price-matching pitfalls

Sony needs to lower the price of its new consumer-focused tablet PC devices to make a serious dent in the mobile device market, analysts have warned.

The hardware vendor announced details of its first tablet PCs yesterday – the Sony Tablet S and Tablet P.

The Sony Tablet S features a 9.4-inch screen and has an asymmetric design that Sony claims makes the product easier to hold for long periods of time.

The 16GB Wi-Fi version of the device will go on sale next month at PC World, Curries, Sony Centre and John Lewis, priced at £399.

The 16GB 3G-enabled Tablet P, which features a folding screen design, is due to go on sale in November for £479.

Both tablets are powered by an NVDIA Tegra 2 processor and run the Android operating system. They also feature front- and rear-facing cameras, a USB 2.0 port and an SD card slot. They provide users with access to the Sony Entertainment Network and allow them to play Playstation-certified games.

In a statement to ChannelWeb, a Sony representative wrote: "While retailers are always free to set their own pricing, the Sony Tablet S and Tablet P are intended to be priced at the same level as other tablet devices."

Speaking to ChannelWeb yesterday, Tom Evans, research analyst at Canalys, said Sony's decision to price match, rather than undercut, its rivals could do more harm than good.

"All Android devices need to have a differentiator. These tablets have that by being Playstation-certified and giving users access to the Sony Entertainment Services," said Evans.

"The price might not work in its favour, as devices that are similar in price to the Apple iPad, such as the HP TouchPad and Blackberry Playbook, have struggled in their first quarter on sale."

Citing HP's doomed TouchPad as an example, Salman Chaudhry, product manager for mobile computing at Context, said consumers are willing to buy non-Apple devices for the right price

"There is definitely enough demand in the market to sustain a device such as this – you only have to look at how quickly the TouchPad sold out once HP dropped the price," he added.