The Nvidia Tegra 3 processor

Nvidia CEO Jen-Hsun Huang said in a recent interview that their recent cost reductions on the Tegra 3 processor will enable manufacturers to launch Android tablets with $199 pricetags, and that we'll see them as soon as this summer. As Huang explains, this can seriously lower the barrier for entry. 

“We took out $150 in build materials, things like expensive memory. At $199, you can just about buy a tablet at a 7-Eleven.”

$200 is a sweet price point, as proven by the success of the Amazon Kindle Fire, and now others, like the ZTE Optik, are trying to follow up. I'm definitely looking forward to seeing more decently powerful Android tablets that also happen to be reasonably priced, but maintaining quality at those lower tiers is going to be a challenge. 

Though this is ultimately great news for the short term, Hsung had said in a private correspondence to employees that their Kepler GPU which launched recently on desktop graphics cards would be making the leap to mobile eventually. Other commentary from Huang in this interview similarly shows he's eyeballing proper tablet PCs, rather than continuing on with Android.. 

“Android hasn’t developed as I’d hoped. For many people, though, work is still the primary reason to have a computer. They want Windows to work well, they want Outlook to work well. A tablet running Windows 8 with Tegra could be very nice.”

He's got a point - do Android tablets really have much of a future with "real" computers being whittled down to comparable sizes? From what I've seen Intel enabling, I don't think so. 

Source: Bits

 
There are 20 comments

richardpandy says:

Yeah but are the tablets going to be worth that 200$ Price tag? I have used several android tablets over the past few months and don't find any of them to be all that spectacular and worth their much higher price tag. As much as I want to see Android take down Apple and their sheep, the stuff I have been testing lately doesn't. And before you say we can't compare apples to oranges, its all competition so it must be compared. Even if the price tag is lower, MOST individuals, including myself, want something that is going to last and work well with no issues.

Poteluz says:

What exactly do you mean the stuff you've been testing doesn't? What don't the top of the line tablets not do that the ipad does do???? Android tablets are better in every way and cost less than the ipads

jrod986 says:

Well there's one thing almost everyone can agree on that the iPad stomps Android tablets on, app developer support, especially on the game side of things. For people who considers tablets as toys and not their main computing device, it's still hard to beat an iPad.

Plus you know, its RESOLUTIONARY

Davest says:

Wow...spoken like a true fanboi. While I agree that Android is the way to go, and I have no plans to purchase an iPad, comments like yours are just silly. The simplest contradiction to your statement is the screen resolution. Not important to me, but when dealing with absolutes it's really easy to be proven wrong. And which of the high-end (read - Tegra 3) tablets are cheaper than an iPad?

Bishounen says:

honestly, at $199 is the point when I buy. Especially if they are similarly specced to the nook tablet or the fire abd with similar build quality AND have ICS installed. The biggest isue with current android tabs is the version of the os and the exorbitant cost.

icebike says:

Tablets end up on every couch, and newer lightweight laptops end up doing the real work.

A great number of people will never need anything other than a good cheep 10 inch tablet at home for web, email, books, movies and games.

So yeah, sub $200 dollar wifi only tablets will sell zillions. With cloud storage, who really cares how long it lasts?

At that price, its a commodity.

Mtn_Scott says:

Real work gets done on a desktop. Casual work, gets done on laptops. Media consumption is for tablets.

Some tabs work for note taking but true creation of tablets is inefficient at best.

sungminee says:

There is a such thing....kindle fire...

So when they took out the expensive memory, what did they replace it with?

icebike says:

The Cloud.

malicefox says:

I would rather they keep the higher price and higher quality. This kind of decision can lead to failing devices, and look poorly on the android community.

Mikey47 says:

So decent tablets will go for 50 gallons of gas or less?

xolanir says:

I believe this is a step in the right direction for these manufacturers. If you lower the price tag and still off legit specs, people will be more willing to purchase a tablet. The reason the KF was adopted in the way it was, was due to the price tag 1st and then people made the specs work for what they personally bought it for. I currently own a KF, other than the low built in internal memory, I digg it! I do a lot of reading, web surfing, game playing and watch movies/tv shows on the fly, and that suites my needs perfectly. So if Android wants to compete with the iPad, all the manufacturers will need to figure out a way to lower their high prices while still offering great specs. NVIDIA is leading the change hopefully in a positive direction.

cwilson617 says:

Enjoy this while you can. China is coming with $100 smartphones, and $200 tablets. Who do you think is manufacturing these anyway? These are of comparable quality running gingerbread. Think we're having fun now, just wait...

Hand_O_Death says:

I mentioned it before on the Podcast chat and again now. The ASUS Memo 370t seems like a crazy awesome tablet for $250.

matijams says:

I agree Hand_O_Death. A tablet's more of a luxury for me, so I've held off. But, I was gonna snatch this one up.
Too bad it's not gonna exist.

davey0728 says:

All I'm saying is bring down the price of Android tablets by $100 and keep the build quality and extras (sdcard slot, USB, HBMI) I REALLY want an Android tab but I cannot see spending $500 for one. The Transformer Prime is a GREAT tablet but it's made by Asus (a company known for lower pricetags) so I see no reason why they can't sell this amazing Android tab for $399 instead for $500+.....it's just too much. Give me $500 and I'll go out, spend another $100 and get an AMAZING laptop with bigger screen, keyboard and DVD drive.

EarlZ says:

expensive memory? Its been cheap for years!

eerongal says:

They're likely referring to the L1 or L2 cache on the processor, and not memory as in a stick of RAM or anything, since as far as i know RAM isn't part of the processor on the tegra chips (just like other processors), just the memory controller. I personally couldn't tell you what the price of THIS sort of memory is :P

bobmilkman says:

I remember reading that the BOM cost of a Tegra 2 is about $20. How would reducing the cost of this reduce the overall cost by $150? Even if they reduced the price of the RAM from $20 to $10..