We’re all familiar with the tablet market by now. We know that Apple sells the high-end iPad and it’s a Google (Nexus 7) vs. Apple (iPad mini) standoff in the cheaper tablet market.

There are (apparently) also players like Lenovo who are targeting a slightly cheaper segment but most of us don’t know about their activities because they failed to specifically target a unique segment. For example, if you are going to buy a $169 Lenovo tablet, you might as well buy a $200 Nexus 7 or an iPad mini.

When Lenovo and other’s presence in the tablet market seem gloomy, the emergence of a new $40 tablet named Aakash 4 with specs that are as good as Lenovo (and others) cheaper tablets pushes them further into the darkness.

The company planning to sell these $40 tablets is Datawind from India. Their business model allows them to earn profit from the sales of apps and this allows them to place themselves in an extremely cost-leadership position of the tablet market which is similar to Nexus 7 and iPad mini, except more extreme.

If this product launch is successful in the UK which is planned to happen in the next couple of months, the looming shadows created by Datawind, Apple, and Google will give no place to surface for Lenovo (and others).

http://www.businessweek.com/articles/2013-11-14/2014-outlook-super-cheap-tablets#r=nav-f-story

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