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Thursday, 1 September 2011 - Sony tablets face tough sell on price, hardware |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Get one printed Wed, Aug 31 2011 Buenos Aires Fashion week sizzles Mon, Aug 22 2011 Experimental plane reaches 13,000 mph Fri, Aug 26 2011 Sony tablets face tough sell on price, hardware Tweet Share this Email Print Related News Sony tablets fail to impress on price, hardware Wed, Aug 31 2011 Sony's tablets may be a tough sell with price tag Wed, Aug 31 2011 UPDATE 1-Sony joins crowded tablet market with 2 devices Wed, Aug 31 2011 Japan backs Sony, Toshiba, Hitachi LCD merger Wed, Aug 31 2011 HP may resurrect TouchPad, weighs PC spinoff Tue, Aug 30 2011 Analysis & Opinion Tech wrap: Is the DoJ right to oppose the AT&T, T-Mobile deal? Tech wrap: HP TouchPad’s second coming? Related Topics Technology » Media » 1 of 7. Kazuo Hirai, President and Group CEO of Sony Computer Entertainment, presents the new Sony S tablet (R) and the P tablet during a news conference at the IFA consumer electronics fair in Berlin August 31, 2011.Sony Corp took the wraps off its long-awaited tablets on Wednesday with price tags that could hurt the company's chances to compete for the No. 2 spot in the tablet market. In Europe, the S tablet will cost 479 euros and will be in stores in September. Sony said the S tablet is unique because of a universal remote inside the computer that can be used to control stereos, cable television boxes and TV sets of many brands. The P tablet comes with 4 GB of memory and looks like a clutch purse. It has two 5.5-inch screens that can be folded together and weighs less than a pound. In Europe, the P tablet will cost 599 euros and be out in November. Credit: Reuters/Tobias Schwarz By Isabel Reynolds and Liana B. Baker TOKYO/NEW YORK | Thu Sep 1, 2011 2:16am EDT TOKYO/NEW YORK (Reuters) - Sony's new tablet computers failed to excite gadget reviewers and analysts who criticized the pricing and quality of the devices, underscoring the battle Sony faces regaining its consumer electronics crown. Sony Corp is already late to the game with its first tablet, which hits stores this month, more than a year and a half after Apple Inc launched the blockbuster iPad and almost a year since Samsung Electronics Co Ltd came out with the GalaxyTab. Samsung's Galaxy occupies the No.2 slot in tablets that Sony is targeting. Reviewers and analysts highlighted a high price and features that suggested Sony would remain an also-ran rather than a leader in the tablet market. Two versions of Sony's main tablet cost $499 and $599, the same price as two lower-end Apple iPad models. "Consumers want tablets, but they are not prepared to pay the same amount they'd pay for an iPad for something that's not an iPad," said Gartner analyst Carolina Milanesi. "Despite the brand and different design, with its pricing so close to the iPad, it will be challenging for Sony." Once a symbol of Japan's high-tech might, the maker of the Walkman and PlayStation gaming console is struggling under the weight of its money-losing TV division and badly needs the boost of a hit product. "Sony really must be in the tablet market and must succeed," said Mito Securities electronics analyst Keita Wakabayashi. Worldwide tablet shipments are forecast to more than triple this year to 60 million tablets and then rise to 275.3 million units by 2015, according to a report this month from research firm IHS iSuppli. DISTINGUISHING FEATURES Sony's new tablets run on Google Inc's Android software, like the GalaxyTab and many other tablets from Acer Inc, Asustek Computer Inc and Motorola Mobility Holdings Inc. It is trying to distinguish its tablets from other Android players with features such as having one model function as a universal remote, while another folds like a clamshell and offers access to some first generation PlayStation games. Backed by a disco beat during an event in Berlin to unveil the devices on Wednesday, Sony CEO Howard Stringer brushed off concerns the company waited too long to get into the tablet market. "We want to prove it's not who makes it first that counts but who makes it better," Stringer said. Based on the initial reception, Sony has failed in that regard. Tech reviewers credited Sony for coming up with a unique curvy design for the S tablet, which resembles a folded-back magazine and makes it easier to hold with one hand, but the quality of the hardware was questioned. A review on the Gizmodo tech blog called the tablet "extremely plasticky" and said its screen scratched more easily than other tablets. Sony vowed in January to become the world's No. 2 tablet maker -- behind Apple -- by 2012 and Sony executives stuck to that ambitious claim ahead of the tablet launch. But research firm Forrester put out a blog post saying Sony's pricing "raises a red flag." At a low-key Japanese launch of the tablets in Tokyo on Thursday, Sony hinted it could be flexible on pricing. "We'll see and study how the market will react and we'll take any necessary action," said Hideyuki Furumi, deputy president of the Sony division in charge of the new tablets. "But then again, we don't want to do competition simply on prices, because we have a lot of differentiation points," he added, saying the entertainment features would be expanded over time. One expert who has played with the single-screen "Sony Tablet: S" also was doubtful it could compete with rivals that sell high-end tablets at the same price. Tim Stevens, editor-in-chief of the Engadget tech blog, said the tablet's hardware was underwhelming and its feel and design trailed the iPad 2 and the Galaxy Tab. "I honestly don't think this is going to be the tablet that really catapults Sony into the lead on the Android front, which is where it needs to be if it wants to be No. 2 in the tablet market," Stevens said. Some tech bloggers anticipate Amazon will more likely prove a competitor to Apple, with a tablet that has not been officially announced but is expected in the next few weeks. CROWDED MARKET Sony joins a slew of technology companies hoping to win a share in a market where many have stumbled in pursuit of Apple. Hewlett Packard's Co decision to drop its Touchpad tablet only weeks after it came out shows how easy it is to fail. Sales soared only after HP slashed the price to $99 from $399 and $499, prompting the company to announce a further "final run" of the tablets to meet demand. Sony said the S tablet is unique because of a universal remote inside the computer that can be used to control stereos, cable television boxes and TV sets. The wifi-only device has a 9.4 inch screen, weighs 1.33 lbs and has front and rear cameras. A 16 gigabyte version of the tablet will cost $499 in the United States, while the 32 GB version will retail for $599. In Europe, the S will cost 479 euros. It can be pre-ordered on Wednesday and will be in stores in September. Sony's second tablet, the P, comes with 4 GB of memory and looks like a clutch purse. It has two 5.5-inch screens that can be folded together and weighs less than a pound. The tablet also offers 4G cellular service. In Europe, the P will cost 599 euros and be out in November. Sony said it would be in stores in the United States later this year, but did not provide a date or price. Sony's tablets tap its entertainment library by offering music and movies services, which should give it an edge over rivals, according to Stringer. "Apple makes an iPad, but does it make a movie?" Stringer said. Sony shares rose 2 percent in a firmer Tokyo market on Thursday after the tablets were unveiled. U.S. listed shares closed almost 0.3 percent down at $21.95 after opening higher. (Additional reporting by Nicola Leske and; Christoph Steitz in BERLIN; Editing by Lincoln Feast) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) jmmx wrote: I think consumers will buy a device priced equivalent to the iPad, but ONLY IF they see equal quality. It seems as though Sony has delivered a fine design, with real differentiation. But if Gizmodo is correct and the build quality is cheap, then it will not fly. People seem to think that you can build a tablet with equivalent specs to the iPad and sell it for less. Well of course you can – if you do not mind losing money. Everyone forgets the pre-release days of the iPad when all the pundits were saying “If they can keep the price under $1000 then they might be able to sell them.” And then the jaws all dropped when Apple announced the price. It just cannot be done. Sep 01, 2011 3:02am EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Mobile Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Newsletters About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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