One of the truths about technology is that it eventually becomes a commodity. Centuries ago, bronze and steel were technologies, which were commoditized. In more recent times, cars were once considered technology, though today have also been commoditized. When that happens, manufacturers involved in those commodities must find ways to differentiate themselves in the market or get out.
A great example in the automotive industry is BMW. In the 70s, the company decided to stop marketing their cars themselves, but instead marketed the experience of driving the vehicle. Their slogan "The Ultimate Driving Machine" has absolutely nothing to back it up, but it emphasizes the emotional aspect of owning and driving a BMW. The marketing has been successful, seeing consistent sales increases.
Electronics are currently going through a similar transition, with many electronic categories becoming commoditized, but none more so than Android tablets. Everyone has seen the cheap, garbage Android tablets in drug stores and even convenience stores. Black Friday makes it even worse, with brands you've never heard of offering tablets for prices that don't seem possible. With so many companies competing on price, how can a manufacturer set itself apart from the pack?
Dell believes that they cannot and have decided to exit the market entirely. Effective immediately, the Android tablet division of Dell is closed, with current models discontinued, no future models coming and no future support for existing models. This means that if you have a Venue Android tablet now, you will never see an official update to Android Nougat, the next major release. A spokesperson said,
Rather than competing in the over-crowded, consumer-focused Android market, Dell has decided to focus on their own bread and butter: enterprise customers. In that space, the demand for Windows devices has always reigned supreme, so Dell will continue to produce tablets featuring Windows 10. This product category has a lot more room for growth and diversity, with specs being a top seller, as opposed to pricing.read more...