Vizio Plans to Challenge Apple With Low-Priced Smartphone, Tablet Computer

By Cliff Edwards
Bloomberg News

Jan 2, 2011 11:00 PM CT

http://www.bloomberg.com/news/2011-01-03/vizio-to-challenge-apple-with-low-priced-smartphone-tablet.html


Vizio Inc., the second-largest U.S. television supplier, will introduce 
a low-cost smartphone and tablet computer using Google Inc.’s Android 
software to attract consumers who can’t afford Apple Inc.’s devices.

The smartphone with a 4-inch screen and tablet with an 8- inch display 
will be unveiled at the Consumer Electronics Show in Las Vegas, which 
begins Jan. 6, Chief Technology Officer Matthew McRae said in an 
interview last week. Irvine, California-based Vizio will also showcase 
TVs and Blu-ray players that use Google TV software, he said.

With the new products, closely held Vizio will challenge Apple, maker of 
the iPhone and iPad, and Research in Motion Ltd., which plans to offer 
its Playbook tablet this year. Vizio, known for low retail prices for 
its flat-screen televisions, intends to make its smartphone and tablet 
“very aggressively priced,” McRae said, declining to provide specific 
numbers.

“There is a huge gap in the market for people who can’t afford the iPad 
or whatever else,” McRae said.

The tablet and smartphone will be sold at Wal-Mart Stores Inc. and 
Costco Wholesale Corp., and a carrier for the devices will be announced 
closer to their summer debut, McRae said.

Vizio, second to Samsung Electronics Co. in sales of TVs in the U.S., is 
customizing its Internet applications platform, combining the interface 
with Google’s Android software on the tablet, smartphone and new TVs, 
McRae said.

“We’re going to make sure all this stuff works well together,” he said. 
“You’ll see a nearly identical interface on the phone, tablet, TVs and 
Blu-ray players, hooked to the same application store.”

Compete With Apple

Manufacturers trying to compete with Apple’s iPad must create 
experiences that resonate with consumers since the devices themselves 
are easy to create, said Richard Shim, a San Francisco-based analyst at 
researcher DisplaySearch.

“We are already starting to see many of the players starting to invest 
in establishing an ecosystem for their slate products,” Shim said.

The Vizio tablet and smartphone will feature transmitters that allow 
them to function as remote-control devices for other electronics. Both 
will have access to a new Vizio “On Demand” movie service, which will 
let consumers purchase and rent movies, McRae said.

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George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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