Sony tablets fail to impress on price, hardware

NEW YORK/BERLIN Wed Aug 31, 2011 6:38pm EDT

1 of 7. Kazuo Hirai, President and Group CEO of Sony Computer Entertainment, presents the new Sony S tablet (R) and the P tablet during a news conference at the IFA consumer electronics fair in Berlin August 31, 2011.Sony Corp took the wraps off its long-awaited tablets on Wednesday with price tags that could hurt the company's chances to compete for the No. 2 spot in the tablet market. In Europe, the S tablet will cost 479 euros and will be in stores in September. Sony said the S tablet is unique because of a universal remote inside the computer that can be used to control stereos, cable television boxes and TV sets of many brands. The P tablet comes with 4 GB of memory and looks like a clutch purse. It has two 5.5-inch screens that can be folded together and weighs less than a pound. In Europe, the P tablet will cost 599 euros and be out in November.

Credit: Reuters/Tobias Schwarz

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NEW YORK/BERLIN (Reuters) - Sony's hopes of dominating consumer electronics once again with its new tablets suffered a crushing blow on Wednesday from analysts and gadget reviewers whose first impressions were overwhelmingly bad.

Among their concerns were a high price and features that suggested Sony Corp would remain an also-ran rather than a leader in the tablet market. Two versions of Sony's main tablet cost $499 and $599, the same price as two lower-end Apple iPad models.

"Consumers want tablets, but they are not prepared to pay the same amount they'd pay for an iPad for something that's not an iPad," said Gartner analyst Carolina Milanesi. "Despite the brand and different design, with its pricing so close to the iPad, it will be challenging for Sony."

The Japanese company is already late to the game with its first tablet, which hits store shelves in September, more than a year and a half after Apple Inc launched the iPad and almost a year since Samsung Electronics Co Ltd came out with the GalaxyTab.

Backed by a disco beat during an event in Berlin to unveil the devices, Sony CEO Howard Stringer brushed off concerns the company waited too long to get into the tablet market.

"We want to prove it's not who makes it first that counts but who makes it better," Stringer said.

Based on the initial reception, Sony has failed in that regard.

Research firm Forrester put out a blog post saying Sony's pricing "raises a red flag."

Tech reviewers credited Sony for coming up with a unique curvy design for the S tablet, which resembles a folded-back magazine and makes it easier to hold with one hand, but the quality of the hardware was questioned.

A review on the Gizmodo tech blog called the tablet "extremely plasticky" and said its screen scratched more easily than other tablets.

Sony vowed in January to become the world's No. 2 tablet maker -- behind Apple -- by 2012 and Sony executives stuck to that ambitious claim ahead of the tablet launch on Wednesday.

Sony is trying to distinguish its Android tablets from others with features such as having one model function as a universal remote, while another folds like a clamshell.

One expert who has played with the single-screen "Sony Tablet: S" also was doubtful it could compete with rivals that sell high-end tablets at the same price.

Tim Stevens, the editor-in-chief of the Engadget tech blog said the tablet's hardware was underwhelming and its feel and design trailed the iPad 2 and the Galaxy Tab.

"I honestly don't think this is going to be the tablet that really catapults Sony into the lead on the Android front, which is where it needs to be if it wants to be No. 2 in the tablet market," Stevens said.

The new tablets run on Google Inc's Android software, such as the GalaxyTab and many other tablets from Acer Inc, Asustek Computer Inc and Motorola Mobility Holdings Inc.

Sony joins a slew of technology companies hoping to win a share in a market where many have stumbled in pursuit of Apple.

Hewlett Packard's Co decision to drop its Touchpad tablet only weeks after it came out shows how easy it is to fail. Sales soared only after HP slashed the price to $99 from $399 and $499, prompting the company to announce a further "final run" of the tablets to meet demand.

Once a symbol of Japan's high-tech might, Sony is struggling under the weight of its money-losing TV division and badly needs the boost of a hit product.

"Sony really must be in the tablet market and must succeed," said Mito Securities electronics analyst Keita Wakabayashi.

Worldwide shipments are forecast to more than triple this year to 60 million tablets and then rise to 275.3 million units by 2015, according to an report this month from research firm IHS iSuppli.

FEATURES: A TV REMOTE AND MOVIES

Sony said the S tablet is unique because of a universal remote inside the computer that can be used to control stereos, cable television boxes and TV sets.

The wifi-only device has a 9.4 inch screen, weighs 1.33 lbs and has front and rear cameras.

A 16 gigabyte version of the tablet will cost $499 in the United States, while the 32 GB version will retail for $599. In Europe, the S will cost 479 euros. It can be pre-ordered on Wednesday and will be in stores in September.

Sony's second tablet, the P, comes with 4 GB of memory and looks like a clutch purse. It has two 5.5-inch screens that can be folded together and weighs less than a pound.

The tablet also offers 4G cellular service. In Europe, the P will cost 599 euros and be out in November. Sony said it would be in stores in the United States later this year, but did not provide a date or price.

Sony's tablets tap its entertainment library by offering music and movies services, which should give it an edge over rivals, according to Stringer.

"Apple makes an iPad, but does it make a movie?" Stringer added.

Sony shares fell 1.77 percent in Tokyo trading before the tablets were unveiled. U.S. listed shares closed almost 0.3 percent down at $21.95 after opening higher.

(Additional reporting by Christoph Steitz in Berlin and Isabel Reynolds in Tokyo; editing by Dave Zimmerman and Andre Grenon)

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Comments (5)
didcrywolf wrote:
This is getting frustrating…
Am I the only one who fails to understand the Tablet business?
HP pulls it tablet with WebOS six weeks in with a bill of materials of $388 per tablet and nothing to show for it but for a fire sale at $99.
Samsung Galaxy gets sued for patent infringement
RIM’s playbook was DOA
and Now Sony has an also ran with same memory.
The question Begs: IS THERE A 10″ $299 128gb 8hr flash 3g tablet out there? If not, don’t waste shareholders money trying… please jump off a cliff, already !

Aug 31, 2011 3:25pm EDT  --  Report as abuse
Catalyzr wrote:
I smell another $99/149 fire sale brewing! :) Sony’s pride will probably result in holding it off for a few months, instead of weeks (HP), but tablet customers could well have a very merry christmas.

Aug 31, 2011 5:29pm EDT  --  Report as abuse
mynamehear2 wrote:
Now I understand their motto- “make believe”. Yes we can make believe we are still relevant, that is.

Somebody- get the dude that knows “Taps” ready! No KIA, more like DOA.

Aug 31, 2011 8:56pm EDT  --  Report as abuse
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