Which Tablet PCs Can Compete with iPad 2?

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apple nasdaq:aapl ipad 2Following the Consumer Electronics Show in January, it seemed as though 2011 would be the year of the tablet computer — and not just the year of the iPad 2 from Apple (NASDAQ: AAPL). New mobile operating systems for tablet PCs were the rage — Android Honeycomb from Google (NASDAQ: GOOG), a BlackBerry Tablet OS from Research in Motion (NASDAQ: RIMM), and WebOS 3.0 from Hewlett-Packard (NYSE: HPQ).

The consensus has been that all are competitive with Apple’s famous iPad 2 software, and that the new generation of tablet PCs may be able to compete with Apple Inc. after all.  But in reality, it’s unclear how well Google-powered tablets or gadget from RIMM and HPQ will with the Apple (NASDAQ: AAPL) iPad 2. Consumers are crazy for the tablet — and two shipments of the iPad 2 have completely sold out since it was released last week, and demand is so high that the international iPad 2 release will be delayed. What’s more, a ChangeWave survey conducted in February showed more than 1 in 4 consumers plan to buy a tablet and 82% of those new tablet owners will buy an iPad.

It’s tough to compete with a powerful brand like the iPad 2. But Hewlett-Packard (NYSE: HPQ), Research in Motion (NASDAQ: RIMM), Motorola (NYSE: MMI) and Samsung are all trying. Let’s see how they will fare:

Motorola Xoom

motorola mmi xoom tabletThe only other tablet already available in the U.S. is the Motorola (NYSE: MMI) Xoom. But the Xoom failed to excite consumers — in part because of its steep price tag — and is a large part of the nearly -30% drop in MMI stock since Jan. 19. Not all is lost though. Motorola will release a WiFi-only version of the tablet for $599 on Mar. 27, a release that should broaden appeal of hte Xoom. The next hurdle to clear: Consumers still don’t understand the difference between Google’s newest “Honeycomb” version of Android and the version seen on most smartphones. They’ll have to be convinced it’s an upgrade.

Samsung Galaxy

samsung galaxy tabletAnnounced in February, the second-generation Samsung Galaxy Tab 10. 1 is similar to the Xoom in its hardware specifications as much as its use of an unaltered version of Google Honeycomb. It also bears a significantly high price, debuting around $979 in European countries. Samsung is promising to release the tablet in March even after company vice president Lee don-Joo said that the tablet is inadequate in comparison to the new iPad. If Samsung isn’t able to lower the price for the new Galaxy Tab’s U.S. release, there may not be third-generation tablet from the company.

Hewlett-Packard TouchPad

hewlett packard touchpad tabletThe Hewlett-Packard (NYSE: HPQ) tablet has a lot riding on its shoulders. The TouchPad and its WebOS 3.0 operating system need to build the company’s portable PC business as well as justify HP’s $1.2 billion purchase of Palm. The company is banking on content partnerships to woo consumers, with exclusive subscriptions to tablet versions of Time Warner (NYSE: TWX) periodicals Sports Illustrated and Fortune as well as a new version of the Amazon (NASDAQ: AMZN) Kindle app. HP confirmed on Monday that the TouchPad will release in June but its price is still unknown.

Research in Motion PlayBook

rimm blackberry playbook tabletThe PlayBook was actually expect to hit the market in time to compete for holiday dollars against Apple, but RIM has repeatedly delayed the 7-inch tablet as its competitors have announced their own releases. An email allegedly sent to Sears (NASDAQ: SHLD) customers on Saturday indicates that RIM will finally release its tablet in April. RIM has a steep hill to climb — consumers have broadly turned away from the undersized 7-inch model, and HP has accused BlackBerry of ripping off its software to run the tablet. RIMM stock has recovered since its crash in the third quarter of 2010, but it needs the PlayBook to replicate the BlackBerry Curve smartphone line’s consumer success for the company to be competitive at all in the tablet world.

As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at @ajohnagnello and become a fan of InvestorPlace on Facebook.


Article printed from InvestorPlace Media, https://investorplace.com/2011/03/apple-ipad-motorola-xoom-samsung-galaxy-hp-touchpad-blackberry-playbook/.

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