India's $35 7-Inch Android Tablet To Hit In January
indogiree writes "Engadget reports that India has just awarded the manufacturing contract to HCL Technologies. The first shipment will supposedly only contain the 7-inch model and is set to arrive on January 10. It's unclear if the $35 price has stuck or whether India's been successful in plans to drive the price down to $10 eventually with the help of large orders and government subsidies. HCL Technologies plans to initially produce 100,000 units. Among the key features of this India-based tablet include 2GB of RAM, web-conferencing, PDF reader, unzip, WiFi, camera and USB connectivity."
Because, as Apple shows, people are not necessarily going for the cheapest thing.
Also you're shooting yourself with low profit margins - look at Motorola and Nokia nowadays - they were selling decent phones a while ago and decided to go for the low hanging fruit of cheap phones. That didn't leave enough focus/resources on the smartphones.
The result is the're both still in big trouble, with Motorola resuscitated by Google's Android as compared to cash rich Apple, who clearly have a strategy that brings in more money and focuses on innovation much more...
Of course they use the cheapest technology, when they want to produce the cheapest product. The point they want to make is that the consumer doesn't necessarily want to pay the extra money to get the extra expensive parts when they are not necessary for the functionality. You don't need the glossy shiny polished glass surface to check the bus timetable on your smartphone, for example.
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