by Gary Sims, 1 year ago
If Google really is trying to create a budget tablet it will likely start a new “race to the bottom”. Although traditionally used as a socio-economic term to describe the taxation policies of countries or states, the concept can be equally applied to building cheaper and cheaper consumer devices to boost sales. The problem with the race to the bottom is something needs to be sacrificed to reach the low costs. In economics, work force regulations, wages and taxes are offered on the altar to attract businesses to a given area. In consumer electronics what is sacrificed is quality, features and usability.
Assuming Google launch a $99 tablet, it is likely that other big names will try something similar. The problem is that once these devices get into the hands of consumers they will find that their expectations haven’t been met and this will irreparably damage the Android and Nexus brands.