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Baffled by Apple's iPad Success, Samsung Cuts Tablet Prices

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Two new reports surfacing today showed that Samsung is baffled by Apple's iPad success. In the first report, we were informed that in order to stay ahead of Apple's iPad in Brazil, Samsung has decided to offer major subsidies to local sales agents to cover 30% of sales prices on average. In the second report, we were informed that Samsung just doesn't understand the American market and may have to consider dumbing down tablets and cutting prices to better compete with Apple.


The only two markets in the world that are buying Samsung tablets to any degree are Brazil and Eastern Europe.

 

Some critics and market analysts say that Samsung's tablet business is only a "half success" because they struggle to compete in the United States. One unnamed Samsung source recently stated that "Samsung's tablet share in the U.S. is hovering around 13 percent, well below Apple's 50 percent. Our technicians and management are now trying to come up with a different approach."

 

Industry sources also cite that Americans prefer Apple's iOS user interface which is a major challenge for Samsung to overcome. But here's where we really see Korean analysts go off course in their perception of the iPad's success.

 

According to Lee Jay-yoon, an analyst at Kium Securities, "Consumers in the United States just use tablets as a plaything. They just purchase goods via online shopping malls and play games. Samsung should think about simplicity not complexity if it wants to grab the minds of U.S. consumers."

 

Contrary to their ignorant view that the iPad is a mere plaything, professionals have rather complex reasoning for choosing to implement the iPad over other tablets in their respective organizations such as the Mayo Clinic, Bechtel, Pepsi, The Benton Group, EVA Airlines and many, many more.

 

2. The Mayo Clinic uses the iPad

3. Bechtel using iPad

4. Pepsi using iPad

5. The Benton Group uses the iPad

6. EVA Airways uses the iPad

Apple's fanatical focus on advancing their mobile operating system annually to meet the needs of enterprise customers and consumers everywhere is what makes the iPad such a special device. Apple has several pages catering to business such as their "IT Center" page and their general business webpage listing specific pages that could assist small and large businesses alike.

 

While it's true that Apple is successful in gaming, a fact that Apple's CEO Tim Cook pointed out in his keynote last week, the fact is that the iPad is able to plug into the best and largest music and app stores on the planet that also offer a seamless cloud experience that goes to the depth of Apple's platform.

 

7. Tim Cook's slide - Apple's Gam Center - 240 Million users

8.300 million iCloud accounts Fastes-Growing Cloud service ever

So when I read in an Asian news report this morning that "Samsung Electronics is struggling to get a foothold in the United States tablet market due to its lack of understanding of customers there," I just shook my head. Are they only catching on to this now?


For now, Apple has the right blend of hardware, software and services to retain their market lead. I think that when a company like Apple receives the J.D. Power award for 9 consecutive years for customer satisfaction, it speaks volumes to most consumers.

 

9. J.D. Power Award - iPhone # 1 Smartphone 6 consecutive years

True copycat companies on the other hand just don't know how to compete with Apple's depth and so they resort to what they do best: make cheap discounted products and copy, copy, copy Apple's every move.

 

Some analysts say that Samsung is confused. I say that Samsung isn't confused, they're happily confused. Their copying formula is their most notable and valued asset and they'll continue with it until the US Patent Office and courts decide to seriously punish high tech copycats and more importantly, punish them in record time so that they don't get to gain market share as a fruit of their illegal behavior. Hopefully solutions are on the way.

 

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Comments

You know I purchased a SameSung Galaxy Tab 2 7.0 in May, 2012. I used the device for several months, happily browsing the web, reading email and as such for what those devices are for. No serious computing. One major complain was the screen hiccuping when scrolling, and also some sluggishness, but what do you want for what at the time was a good price of $250. Of course I knew about all the talk of Apple's impending iPad Mini. I just needed a toy to play with during the summer. The SameSung fit the bill.

A friend of mine wanted to get a SameSung, I asked her to wait. I told her that I felt that when the Mini were released, that it will own the entire tablet market. And it has, it is beating the 9.7 inch iPad and everything else in the market space. We waited until November 2nd, every day we spoke about the latest rumor of the Mini. Then we walked into an Apple store to purchase the device for her. She was astonished as to the volume of people that were in the store buying the Mini. I knew that Apple would NEVER release a product that performed as the Galaxy. After my friend purchased her Mini, I borrowed it(I had to pry it from her hands) and compared it side by side to the Galaxy. Holy C%$P.

The Mini showed why Apple is the company it is. And yes, that latest commercial about "Designed by Apple in California". It applies to the Mini. I had versions of apps running on the Galaxy just like on the Mini. There is no comparison. Everything was just smooth and quick on the Mini. I drove down to Best Buy and purchased a Mini, and haven't looked back since.

I own 2 MBAs, 1 Mac Mini, 1 MBP, an iPad 2 and the iPad Mini (32GB). I should have known better.

The news media will continue to happily chatter about how the iPad is losing overall market share to all Android tablets and how Apple will become a minor player in the tablet business in a year or so. They reason that once Android tablet sales reach a majority tipping point, it's all over for Apple. Apple will again be doomed owing to the commoditization of every product Apple makes. The only thing that matters to the news media and Wall Street is market share because highest market share means dominance. Wash, rinse, repeat cycle.

Honestly, I've used both iPads and Samsung tablets extensively, and the iPad wins hands down because of its superior performance speeds, reliability, and usability. Samsung need to up their UX game if they want to compete, because right now their tablet is a piece of junk.

"Our tablets are simply too advanced for the American consumers! THAT must be why they aren't selling!"

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