In May we posted a report titled "How will Samsung Win against the iPad?-By Flooding the Market with Super Cheap Tablets over the Next Two Years." In that report we pointed to Samsung's co-CEO Shin Jong-kyun stating that they planned to grow their tablet business two-fold by selling some 33 million Galaxy Tabs. He vowed to expand its leadership in the smartphone to tablet sector. In translation that meant that Samsung would flood the market with super low-ball tablets and win the market share game against Apple. Today, that strategy has been confirmed in black and white.
Being unable to compete with Apple's iPad and iPad mini in a brand-to-brand showdown, Samsung will once again resort to severe price cutting in order to win against Apple at all costs. Their 10.1 inch Galaxy tablet is such a failure that they've just cut part supplies for that tablet so that they can regroup and aim for the 7 inch tablet market.
In respect to flooding the market with low cost tablets, DigiTimes is reporting today that "Samsung is adopting a strategy to flood the market with various tablets including 7, 8- and 10-inch models, as it seeks to dethrone Apple."
The 7-inch 8GB Galaxy Tab 2's US$169 and the new 7-inch 8GB Galaxy Tab 3's US$199 price points have both helped boost Samsung's 7-inch tablet sales significantly, DigiTimes' sources noted. Yet that price cutting strategy isn't working well at all for the 10.1 inch Galaxy Tab or Galaxy Note thus far. DigiTimes reports that "the tablets have not been selling as well as expected despite the fact their prices are more attractive than Apple's 9.7-inch iPad 4."
The fact remains that Apple's iPad holds half of all tablets sold in North America (Mainly the US and Canada) along with 84% of its web traffic – which ties back to the iPad having superior apps and savvier end users. In many ways, it's not about price alone. It's about the iPad being a superior product overall.
In the big picture, what kind of competitor is Samsung when they have to resort to a strategy of flooding the market with cheap tablets and worse, copy or steal Apple technology in order to compete? Well, apparently an obsessed one.
Though to be fair it must be said that Samsung isn't alone in fearing Apple's next tablet moves as most Android tablet vendors believe that Apple's next iPad moves could likely impact the entire tablet ecosystem severely.
At the end of the day the question is: will Samsung be able to dethrone Apple as king of tablets in 2013? Although only time will tell how that'll actually play out later this year, what's your opinion of this? Send in your comments below.