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How will Samsung Win against the iPad? By Flooding the Market with Super Cheap Tablets over the Next Two Years

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While the latest web traffic stats published by Chitika Insights yesterday showed that Apple's iPad is still sitting on 81% market share, Samsung is hard at work to beef up their sales of tablets so as to become the "market share" leader in tablets by next year. Playing the "market share" game has been Samsung's game plan because the mainstream press and Wall Street love it, even when profits sag well below what Apple pulls in. According to a recent report, The Ratio of Profits to Market Share shows Apple with 3.12% versus Samsung with 1.30%.

News out of Korea today confirms that Intel has just signed an agreed with Samsung Electronics to provide advanced processor chips for the upcoming budget Samsung tablets, according to sources from both Samsung and Intel.


Under the agreement, Samsung Electronics will use Intel's Atom-branded processors in its Galaxy Tab3 tablets. The latest move is expected to pave the way for Intel to expand its presence in the rising mobile device market. The Tab3 is expected to be unveiled at the 2013 Computex conference during the first week of June in Taiwan. That's just a few days before Apple's WWDC which Kicks off on June tenth. I'm sure the timing of this announcement at Computex was clearly engineered to steal headlines away from Apple.


According to the report, Samsung's co-CEO Shin Jong-kyun recently told reporters that it plans to grow its tablet business two-fold by selling some 33 million Galaxy Tabs. The report states that "He then vowed to expand its leadership in the smartphone to tablet sector." Translation of that vow: We'll Flood the market with super low-ball tablets and win the market share game against Apple.


Sadly, it's likely to work and the press and Wall Street will have a field day with it. Then again, did you hear the joke about the two farmers?


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You gotta love a company who's sole motive is market share. A company who is hell-bent and vows to be a "market share leader" is not exactly a company who has their priorities in place. Thats a company who doesn't give a shit about products or customers, its a company that treats customers like puppets who are just pawns in their quest to dominate market share.

Its pretty sad, companies who operate like this. Companies who only gives a damn about owning the market share. Not creating the best products they can, or delighting their customers, and providing the best service they can. Nope, just a sole priority of owning marketshare. Quite pathetic. But thats how Samsung has been for as long as I can remember them. A pretty disgraceful company who runs their business in their home country like a Mafia.

You say: "What I don't understand is how this actually hurts Apple except to drive down its share price."

Man, where do I begin to reply to that. You're talking like the Apple idiots of the 1980's. You're oh so happy to be a niche like Mercedes. If you're a shareholder, you experienced one the craziest rides to the top and going back to be a niche isn't in their interest. You lose Wall Street, you lose investors and eventually Apple is back to being a dinky niche.

I like Apple. I hope that they can spring back after the passing of Steve Jobs. But what I see now is a company that is stuck thinking they're still the leader when in fact they're losing ground on their crown every day that goes by that they don't show the world something new and great.

To Wall Street, market share appears to be more important than anything else and Samsung is happy to play Wall Street's game. What I don't understand is how this actually hurts Apple except to drive down its share price. Obviously, Apple only has to sell a certain amount of products at a certain profit margin to keep the company profitable. Apple only needs to continue to offer relatively up-to-date, high-quality products and good customer service. There will always be enough consumers around who want and can afford Apple products. I'd think it would be relatively simple for Apple to hold onto 10% market share consisting of high-end customers to keep the company well into the black no matter how many low-cost products are flooding the market.

I'm not sure who is behind this campaign spreading information that Apple's future is extremely at risk from low-cost products. I'm sure low-cost products will slow Apple's overall growth, but that's about it. The only thing that would be affected is Apple's share price because major market share and growth are all hedge fund investors are interested in. Other than that, Apple should internally be able to stay financially healthy. As long as Apple has decent product sales, there's no way the company is going to burn through $140 billion very quickly. Currently, Apple has a leg up on every tech company in existence when it comes to cash. It's odd that there are so many people out to undermine Apple. It's not as though Apple is forcing consumers to buy their products or driving rivals out of business by undercutting their prices. Why is providing good products to consumers seen as a crime?

Even if Samsung does flood the market with low-cost tablets, will consumers actually buy enough of them. It's too bad Apple doesn't have more services to combat Samsung's hardware push. I think if Apple were able to offer more services to consumers it would help keep the value of their hardware that much higher.

Hahaha the two farmers

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