Description: Apple (AAPL) and Samsung (005930:KS) built big tablet businesses by appealing to early adopters with money to burn. Lenovo (992:HK) and other companies are working on sub-$100 tablets aimed at the lower end of the market. But starting next year it may be tough to compete on price with the Aakash 4, a 7-inch Android tablet developed by British manufacturer Datawind and India’s Ministry of Human Resources Development. Datawind Chief Executive Officer Suneet Tuli said at a Wired conference in October that the device has twice the processing power and RAM of the first iPad and will cost as little as $40.

Source: Businessweek.com

Date: Nov 14, 2013

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

Questions for Discussions:

• What does this report suggest about the direction of sales and profits for Apple and Samsung?
• How do you think management should strategically respond to this threat?