Telstra unveils $299 Android tablet, but experts warn market is becoming too competitive

Telstra has finally announced its long-awaited entry into the tablet market with the $299 T-Touch Tab, an Android-powered device the company says will offer an alternative to the higher-priced gadgets available on the market.

But experts and entrepreneurs warn while the T-Touch itself is a strong product and is likely to enjoy some success, the tablet market is becoming increasingly competitive and Telstra needs to add some features to set it above the pack.

“There’s going to be a market for all different types of tablet devices. I think it’s going to have moderate success, but the challenge is that with the strong Australian dollar, people can go and buy a Wi-Fi only version of these devices overseas,” Telsyte research director Foad Fadaghi says.

“That price-sensitive end of the market is likely to shop around. It’s going to be challenging for lower-priced devices in that section.”

Online entrepreneur Ruslan Kogan, who is notorious for releasing cheaper versions of gadgets while they are at the height of their popularity, also says he has held off from releasing a product of his own due to the high standard set by the Apple iPad.

Telstra announced it would be releasing two tablets last month, but until now much of the detail has been unclear. Telstra confirms the T-Tab will have a 7-inch screen, and will allow users to browse the internet, consume media and even make phone calls.

The gadget features stereo speakers, a two-megapixel camera (with a front camera as well), 150 minutes in talk time, 150 minutes of video playback and 140 hours in standby. It also features 512MB of internal memory with an internal slot capable of holding up to 16GB, Wi-Fi, Bluetooth and GPS capability.

The tablet, which is being manufactured by Huawei, is powered by the Android operating system, which will enable users access to over 100,000 apps from the Android Market.

The gadget is designed to sit alongside the family-friendly gadgets in the ‘T’ brand, including the T-Box and the T-Hub, Telstra said.

Other features include the ability to send SMS messages, access the mobile Foxtel feature and read eBooks. And the company is clearly targeting the price-conscious consumer, with a $299 retail price for the gadget.

Credits will be available only in prepaid form until the end of November, when post-paid plans will also be available. Currently the recharge prices are $20 for 250MB, $30 for 700mb, $40 for 1GB, $50 for 3GB, $80 for 4GB, $100 for 6GB and $150 for 10GB.

“We think affordable mobile tablets like Telstra T-Touch Tab will be great news for the majority of hobbyists, who admit they want to devote more time to their passion, but can’t due to lack of time and associated costs,” Telstra says.

Fadaghi says the gadget is sure to do well among price-conscious consumers and families, who will be watching their spend. However, he also says the tablet market is becoming quite competitive and mounting a threat to Apple and Samsung, which is set to release its Galaxy tablet soon, will be a challenge.

“It’s going to be challenging for all tablet manufactures at this end of the market. You’re going to see many products that are more premium-priced, and these manufacturers all believe that when you start going cheaper it gets more competitive.”

“I think Telstra have reached the market quite early, but what would improve the gadget is if you could hook up to your T-Box and stream stuff from the tablet onto it. The interaction of all the T-devices together is something I’d be looking forward to in future software updates.”

Kogan says his own company is working on a tablet, but it’s a market that has taken him longer to enter due to the high standards set by Apple.

“A tablet is something we are working on, but Apple has set a very high benchmark and we want to make sure when we release a product that we’re able to go pound-for-pound with our competitors. If you break the tablets down and look at the user experience Apple is giving you, none of them compare.

“There are 10 or 15 lower-end priced tablets on the market at the moment, and I wouldn’t use any of them. Apple has set a high standard and until we can come up with something that competes, we’re not going to go any further.”

Kogan says the Telstra tablet interests him, but the launch isn’t pressuring him to release his version any sooner. Instead, he says the company will continue to work on its own incarnation for as long as it takes.