After opening the $499 iPad tablet, many journalists commented that the device was surprisingly affordable for an Apple product. This may not actually be the case however, as several sub $200 competitors running the Android operating system have appeared. Will the iPad be able to gain major market share when it costs more than twice the price of other tablets or is the iPad doomed to be a “high-end only” product like the Mac?

The Archos 5 inch tablet has never really been a competitor to the iPad, as the screen size did put it more in the MID / media player category than the tablet category. The new 7 Inch Archos tablet running Android on the other hand is clearly aiming at the iPad crowd. Its major selling point: the price, with some models going for as low as $179 (for the 2GB version), less than half the price of the iPad. Spec-wize the Archos tablet is somewhat inferior to the iPad: it uses an older ARM 9 processor (but then the iPad A4 processor is not very fast either), has less storage (but allows for an SD card to be used), has a lower resolution screen and a more limited choice of application, but on the other hand it has a better media player (more formats are supported), do offer a browsing experience on par with the iPad and may support flash lite (flash 10.1 won’t be possible however). You probably will not get an integration as good as between the iPad and iTunes, but then you won’t have to deal with Apple censorship (you can install ANY working application just by downloading the apk file) and Linux is officially supported as your desktop OS.

The big problem for Apple is that for most common tasks such as surfing, reading eBooks or playing audio and video the Archos tablet will perform as well as the iPad for less than half the price. The only usage scenarios where Apple dominate is mobile gaming, will that be enough to justify the price? For some people most certainly, and you can expect a lot of Apple fans to be ready to pony up the cash too, but I am afraid that the average user won’t see it that way and that the iPad will stay an high end device with limited market share. When Apple launched the iPhone they were miles ahead of the competition and thus could justify the premium price, but with the iPad they will have to face aggressive competition from day one, and not only from Archos. When you add to that the recent shenanigans concerning “sexy apps” (not so much a problem in the US, but much more here in Europe where we are not used to that kind of censorship) I can see Android tablets winning the tablet war on the long term.