Here Comes Another Losing Tablet
Tweet
Share
E-mail
Get Alerts GOOG Hot Sheet
Join SI Premium – FREE
HTCs new Jetstream tablet has the power, features, and technology that add up to a solid offering -- but let's be honest -- it's just not going to sell...
There's still iPad's and iPad 2's out there.
The Jetstream will run Google's (Nasdaq: GOOG) Android Honeycomb, have 16-GB of expandable memory (32-GB with MicroSD), and run Qualcomm's (Nasdaq: QCOM) Snapdragon 1.5-GHz processor, among other features.
Unfortunately, the device will sell for $699.99 out of the gate and require a 2-year AT&T (NYSE: T) contract, meaning buyers will need to commit to a long-term, $35 per month contract for 4G access. Both HTC and AT&T have said this is a discounted promotional price.
As we saw last week with Hewlett-Packard's (NYSE: HPQ) fire sale of the TouchPad, there is in fact demand for high-quality, non-Apple tablets... priced around $300 or less. At $99, HTC would sell so many tablets their heads would pop off (though investors may be none too pleased for the first few quarters if HTC were to absorb some of the cost).
But why would a consumer in the market for a tablet seek anything but Apple if they're willing to shell out the bucks? For just $629, plus contract, you can get a still-top-of-the-line iPad 2 with 3G accessibility, 16-GB of memory, and WiFi access.
What sets the Jetstream apart is that it runs on AT&T's 4G LTE network, promising faster download speeds and browsing. 4G is a great technology, delivering exactly as promised... pending you live in the right area. Looking at AT&T's 4G map, which can be accessed here (hint: click on coverage on the lower tabs), you can see it's rather sparse right now. AT&T, like rival Verizon (NYSE: VZ), is working to expand that coverage on a continual basis.
Over the last year, HTC has been making notable gains with quality, Android-based mobile devices which have pushed the Taiwan-based OEM to unparalleled growth. HTC might have established a fanbase willing to make the commitment, but as we all saw with Motorola (NYSE: MMI) and it's XOOM tablet, the transition can be tricky.
With Apple having a stronghold on the tablet market, and looking to keep it over the next several years, either HTC needs to subsidize the price more to promote sales and establish a new customer base for its tablet, or rename it an "iJetsetter."
There's still iPad's and iPad 2's out there.
The Jetstream will run Google's (Nasdaq: GOOG) Android Honeycomb, have 16-GB of expandable memory (32-GB with MicroSD), and run Qualcomm's (Nasdaq: QCOM) Snapdragon 1.5-GHz processor, among other features.
Unfortunately, the device will sell for $699.99 out of the gate and require a 2-year AT&T (NYSE: T) contract, meaning buyers will need to commit to a long-term, $35 per month contract for 4G access. Both HTC and AT&T have said this is a discounted promotional price.
As we saw last week with Hewlett-Packard's (NYSE: HPQ) fire sale of the TouchPad, there is in fact demand for high-quality, non-Apple tablets... priced around $300 or less. At $99, HTC would sell so many tablets their heads would pop off (though investors may be none too pleased for the first few quarters if HTC were to absorb some of the cost).
But why would a consumer in the market for a tablet seek anything but Apple if they're willing to shell out the bucks? For just $629, plus contract, you can get a still-top-of-the-line iPad 2 with 3G accessibility, 16-GB of memory, and WiFi access.
What sets the Jetstream apart is that it runs on AT&T's 4G LTE network, promising faster download speeds and browsing. 4G is a great technology, delivering exactly as promised... pending you live in the right area. Looking at AT&T's 4G map, which can be accessed here (hint: click on coverage on the lower tabs), you can see it's rather sparse right now. AT&T, like rival Verizon (NYSE: VZ), is working to expand that coverage on a continual basis.
Over the last year, HTC has been making notable gains with quality, Android-based mobile devices which have pushed the Taiwan-based OEM to unparalleled growth. HTC might have established a fanbase willing to make the commitment, but as we all saw with Motorola (NYSE: MMI) and it's XOOM tablet, the transition can be tricky.
With Apple having a stronghold on the tablet market, and looking to keep it over the next several years, either HTC needs to subsidize the price more to promote sales and establish a new customer base for its tablet, or rename it an "iJetsetter."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wells Fargo Assumes AT&T (T) at Underweight
- These two stocks remain JPM's preferred picks across the Nordics
- Buy the pullback in this major pharma stock: Bernstein
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
