HardwareDo you think hardware is dead? How expensive or cheap do you think hardware is? Well here’s some information that may surprise you! In China’s technology market, retail prices on tablets and phones are amazingly low. Android phones can be purchased for $100, while tablets are going for only $45! WOW! Furthermore, because consumers are generally able to bargain in China’s market, these devices can be potentially purchased at prices even lower than the retail value

From an article: Hardware is dead written by Jay Goldberg, the author describes his shopping experience in Shenzhen’s electronic market. Jay was able to find a 7- inch, Wi-Fi-only tablet, with all of the attributes of a good device fairly easily for only $45. He was shocked by the fact that this device has a “capacitive touchscreen, snappy processor, front facing camera, 4GB internal memory and expandable memory slot”. Jay was also offered a lower rate if he was to purchase multiple units.

Jay goes on describing that there is no profit margin left for the hardware business. If this is the case then it ends up directly affecting the profit gain for the computer hardware manufacturers. This happens because of the low prices. Tablets have been so cost effective lately that waiters in restaurants are using them to show menus and take people’s orders. Mechanics are using them in their auto shops. Even nurses are using tablets to help them with their day-to-day activities. Basically, tablets are being used in applications where computers may be too expensive to deploy. This leads to the conclusion, that no one can make money selling hardware anymore. HopeRun’s strategy is not to make money from hardware.  Instead, HopeRun hopes to sell services to customers and enhance the customers’ user experience.

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