HP Introduces 64-Bit Tablets, but are the Price Points Too High?

Intel® 64-bit Atom processors in a BayTrails configuration provide the processing power behind HP’s new ElitePad line of tablets for business computing.

The début of tablets running Windows 8.1 o. 64-bit processors is certainly a significant event for Intel, which promised accelerated efforts to beef up its presence in the mobile computing markets for tablets and smart phones.

But each of these tablets, with WiFi and Cellular data communications capabilities, carries a retail cost of at least $909.00, which makes any of the models more expensive than even Apple’s iPad Air tablets (the iPad Air with 64GB and comparable data communications capabilities carries an online price, via the Apple Store of $829.00 as of March 19, 2014). The effective price penalty, baked into the HP ElitePad, is not a promising development for Intel. I’m not sure whether the higher price is the result of HP passing through higher cost for 64-bit Atom/BayTrail solutions onto the consumer, or not, but the end result will likely be the same — anemic sales for these tablets.

PC World recently published an opinion on these tablets. In an article written by Agam Shah, titled HP Ships First 64-bit Windows 8.1 Tablets with Intel Atom. Shah published an estimated retail price of $739.99 for the basic model, which I did confirm on the HP SMB web site.

Competitive pricing is certain to be critically important to the success of Intel’s efforts to establish a position in the 64-bit tablet market for CPUs. Apple clearly owns the high end of the BYOD business market for these tablets. I would argue even the HP Elite Pad price mentioned in Shah’s review, $739.99, is still too high. Neither Intel, HP, nor Microsoft will benefit when the cost, for business users, to enable BYOD hardware with a native Windows 8.1 OS, exceeds the cost of the present market leader (let’s not forget the iPad Retina Mini, which includes a 64-bit processor, Wi-Fi and/or cellular connectivity, and 64GBs of storage at a retail price of $729.00). I would argue the Windows OS, while certainly a potentially valuable feature, is not critical for business consumers using Software as a Service (SaaS) cloud offers.

Ira Michael Blonder

© IMB Enterprises, Inc. & Ira Michael Blonder, 2014 All Rights Reserved

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