Priced lower than any tablet in the current market, Acer Iconia A500 is a direct hit for Xoom and iPad2. Xoom had the advantage of being the first tablet running on Honeycomb, the latest android version. Now, Iconia will be entering into the battle field with Honeycomb OS as soon as April 24. It is priced at $449 where as Xoom and iPad 2 are at $599 and $499 respectively.

Featuring a 10.1 inch display Acer has only half memory when compared to 32 GB of Xoom and weighs more than Xoom. Iconia has Nvidia Ge Force graphics core which is capable of delivering 720p HD on the tablet. When compared with iPad2, Iconia has superior cameras both in the front and the back of the tablet. The storage is same as iPad 2 but it has memory slot which makes it accommodate additional memory of 32 GB. It is compatible with Adobe flash player.

But the question is, is the tablet market price sensitive? It doesn't look like. People are still crazy about iPad 2. The gray market is active and people are also bidding premium prices for iPad on websites like e-Bay. On statistics will prove if this lesser price will favor Iconia or not.