Argos has entered the intensely competitive tablet computer market with a £99.99 own brand product, cheaper than one launched by Tesco last month.
Argos, owned by Home Retail, said its MyTablet would be targeted at teenagers, taking on a market dominated by Apple, Samsung and Amazon. Tesco sold 35,000 Hudls in two days following its 30 September launch – the fastest-selling tablet launch ever seen at the retailer.
Like Tesco’s Hudl, which is priced at £119, Argos’ MyTablet has a seven-inch screen, runs Google’s Android operating system, comes with pre-loaded apps and is enabled for internet browsing, TV, music, video streaming and social networking. However, MyTablet only has 8GB of standard memory compared to 16GB on the Hudl. It also has a lower resolution screen, an inferior battery life and is only available in two colours versus the Hudl’s four.
With this growing segment being vital to Home Retail’s catalogue-led to digital-led reinvention, aiming to to arrest a decline in profits, is this product’s eye catching price point breaking new ground? Brand View has investigated the market to understand more about how competitively priced this product is in a rapidly evolving marketplace.
Is Argos Alone in Offering a Sub-£100 Tablet?
Looking at the last three months the £99.99 price is competitive but in line with the competition, with 80 different options to buy a tablet below £100.
Tablets competing in this price segment are not new, but are certainly in growth, with the number of tablets doubling in the last three months.
With the emergence of sub-£50 tablets and a long tail of SKUs going up through the price segments, it will be interesting to see how Argos develops its presence and how the market reacts. Currently we see Tesco Direct being the most competitive on price across the market for comparable products.
How Does Argos’ MyTablet Compare with Tesco’s Hudl?
The Tesco Hudl has a 7” screen and a 16GB memory and is sold at £119. We have seen a number of other products competing with a similar specification. The chart below details the products sold in the £80-to-£125 price bracket with these same features.
Items such as the Kindle Fire compete closely at around £5 more than the Tesco tablet. Other brands offer a very similar spec and retail at less than £100.
The Argos MyTablet will face some tough competition, which whilst at a sub £100 price point, will be competing with other tablets which have twice the storage of the MyTablet at the same price.
The MyTablet launched on 16 October – to continue to monitor pricing trends in the Tablet market in other Electrical sectors please contact your Brand View Account Manager today.