Samsung Mulling 10-Inch Galaxy Tab Price Cut

Samsung is reassessing the price and design of the upcoming 10-inch Galaxy Tab to better compete with the iPad 2, which goes on sale next week in the $500 to $800 range.

The Korean electronics giant sees the slim design and competitive price of Apple's new iPad 2 as its biggest challenges, according to a report by the Yonhap News Agency.

Apple's iPad 2 weighs less than the iPhone 4 and is one-third thinner than the original model, includes two cameras for video conferencing and also has a faster processor and HDMI output.

The iPad 2 price -- the same as its predecessor -- and compact form factor presents "new challenges" for the South Korean, said Lee Don-joo, executive vice president of Samsung's mobile division, according to the report.

"We will have to improve the parts that are inadequate," Lee told Yonhap News Agency. "Apple made it very thin."

Samsung's Galaxy Tab 10.1 tablet computer will run Android 3.0, Google's tablet-optimized mobile OS, and is also faster and thinner than the 7-inch original Galaxy Tab, and was slated to cost more -- until news of the iPad 2 hit. "The 10-inch (tablet) was to be priced higher than the 7-inch (tablet) but we will have to think that over," Lee said.

The original Galaxy Tab costs $899 without a two-year carrier contract, while the price of the iPad 2 starts at $499, with the most expensive model costing $829.

News of Samsung's second-guessing itself comes at a time when the tablet sector is poised to take off over the next several years, with Apple dominating the market.

Apple's share of the global tablet market reached 85 percent by the end of 2010, and despite the slew of new tablets from other manufacturers, Apple will still dominate this year, accounting for 78 percent of global tablet sales in 2011, according to estimates by eMarketer mobile analyst Noah Elkin.

Forrester analyst Sarah Rotman Epps puts Apple's iPad market share at 80 percent for the year.

Driven by sales of the iPad, worldwide tablet sales were expected to reach 19.5 million for 2010, and are projected to total 54.8 million units in 2011, up 181 percent from 2010, and surpass 208 million units in 2014, according to research firm Gartner.

The majority of newcomers chasing the iPad are tablet PCs running Google's Android OS. In addition to Samsung, manufacturers prepping or already selling Android tablets include Motorola, Asus, Acer, Archos, Viewsonic, Dell and Cisco.

TAGS:

mobile, Apple, tablet PC, Samsung, iPad 2

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