iPad 2 Forces Samsung To Reevaluate Galaxy Tab

Posted by Soulskill on Monday March 7, 2011 @12:23PM from the competition-is-easy-except-for-the-competition-part dept.

An anonymous reader writes "Apple's iPad competitors are still spec-obsessed, and Apple's next-gen iPad coupled with the same price point is forcing Samsung to rethink its tablet strategy and pricing methodology altogether. The South Korean Yonhap News Agency relays a quote from Lee Don-joo, executive VP of Samsung's mobile division, about Samsung's upcoming Galaxy Tab 10.1 compared to the new iPad. 'We will have to improve the parts that are inadequate,' Don-joo said. 'Apple made it very thin.' Features aside, Samsung also finds itself in a bind price-wise. The upcoming Galaxy Tab model, complete with a 10.1-inch screen and Android 3.0, was initially going to be priced higher than the current 7-inch Galaxy Tab. Apple's iPad 2, however, is forcing Samsung to 'think that over.'"

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Re:Anyone know... by RzUpAnmsCwrds · 2011-03-07 12:33 · Score: 4, Informative

Does anyone else sort of get the feeling that they are losing money on the sales and making it back in app store?
No one who knows anything about electronics manufacturing thinks this. The $499 16GB iPad, by all estimations, costs under $250 to manufacture.
Manufacturers love tablets because they are cheaper to manufacture than netbooks (smartphone-type SOC CPU, smaller battery, etc.) yet they sell for more.
This works because tablets are differentiated products, not commodities. Android is going to change that by doing the same thing it did in the smartphone market. Expect to see 10" Android tablets for $300 or less by the end of the year.