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