Home / Technology/ Samsung takes shot at iPad with new Galaxy Tab

Samsung takes shot at iPad with new Galaxy Tab


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 21 July 2011 00:00


Reuters: Samsung Electronics Co launched a thinner and lighter version of its Galaxy tablet in its lucrative home market, trying to chip into blockbuster sales of Apple Inc’s iPad.

The Galaxy Tab 10.1 inch is an upgraded version of the 7-inch introduced in October. Priced from $500 onwards in the U.S. market, the same as the 9.7-inch iPad, it faces tough me-too competition from more than 100 devices, mostly running Google’s Android operating system.

However, so far, Apple and Samsung have the market to themselves as tablets, initially viewed as Web entertainment gadget for consumers, have caught the imagination across businesses such as luxury hotels, airlines and wedding planners.

Competing products including Research In Motion’s PlayBook and Motorola’s Xoom have received lukewarm reviews, Hewlett Packard’s TouchPad is a late entrant and Internet retailer Amazon.com Inc unveiled plans only last week to join the overcrowded market.  Apple’s market-beating June-quarter sales for iPad reported on Tuesday underscore the challenge for the South Korean company. Shares in Samsung closed up 3.5 percent, boosting the market capitalisation of Asia’s most valuable technology company to about $130 billion, in a strong market for technology stocks. Apple sold 14 million iPads in the first half of this year, compared with analysts’ sales estimates of about 7.5 million units for the Galaxy Tab over 2011.

“Apple’s quarterly results showed again it’s indeed the strongest rival to beat. Samsung will have a tough second half due to growing competition from Apple as it is set to introduce a new iPhone,” said James Song, an analyst at Daewoo Securities.

Samsung is Apple’s nearest rival in the booming mobile device industry as it leverages its cost competitiveness and access to chips and core tablet components.

It has sharply narrowed the gap with Apple in the smartphone market, but remains a distant second in the tablet market, which research firm Gartner forecasts will surge to 108 million devices next year from an estimated 70 million in 2011.“As our smartphone business grew very fast within a very short period of time, I believe it’s just a matter of time for our tablet business to improve,” J.K. Shin, head of Samsung’s mobile division, told reporters.

Apple said on Tuesday that concern over iPad 2 supply constraints had eased and demand was still outstripping supply in some markets. Samsung is leading the non-iPad camp challenging Apple, whose overall tablet market share is expected to shrink to below half in 2015 from an estimated 69 percent this year, Gartner says. Some analysts however said Samsung faced a tough race. “Samsung’s overall software is still far behind iPad, which makes me doubt if Samsung can succeed to catch up any time soon,” said Lee Min-hee, an analyst at Dongbu Securities. “Its tablet sales were quite disappointing at around 2 million units in the first half and there’s a big question mark whether Samsung can meet its target for this year.”Nomura forecast Samsung’s tablet sales at 7.5 million units this year, far outpacing estimates of 2.4 million for Acer, 2 million units for Motorola and 1.4 million units for RIM.

Non-iPad tablet shipments are set to jump 134 percent next year, outpacing the overall market growth rate of 80 percent, Nomura said in a 90 page global tablets report titled “Prepare for the next course.” The sale of the Tab in Korea is Samsung’s fifth launch after its U.S. debut a month ago and its sales kickoff in Indonesia, where the company says it commands a 65 percent market share. It has also launched the device in Italy and Sweden. The Galaxy Tab 10.1 runs on Google’s newest Android version and Nvidia’s dual core processor Tegra 2.Samsung faces the challenge of moving beyond being a hardware company, clever at copying ideas, to becoming more creative and better adept at software at a time when consumer gadgets are getting smarter.

The Galaxy Tab 10.1 has a bigger and brighter screen and weighs less than the iPad 2. However, it has access to more than 200,000 applications compared with over 425,000 applications from the Apple App store. To cope with such shortcomings, Samsung equipped its Korean version with access to television and radio channels.

Samsung reiterated on Wednesday it aimed to boost tablet sales by more than five fold this year. It didn’t provide specific numbers but analysts expect the company to have sold about 1.5 million units last year. In South Korea, the 16-gigabyte model with Wi-Fi will be sold for 671,000 won ($633), slightly more expensive than the compatible iPad, which is being sold at around 640,000 won. ($1 = 1059.650 Korean Won)


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit


Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi


The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


Columnists More