Samsung Admits to Tablet Market Failures
February 29, 2012 10:24 AM
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The company is confident about its Galaxy Note, though
Samsung isn't too proud to admit when it's not measuring up to the competition. At this year’s Mobile World Congress (MWC), Samsung touted its new Galaxy Note, but mentioned that the company isn't exactly thriving in
the tablet arena
MWC is the world's largest mobile exhibition in the industry. It features top tech executives as well as mobile operators, device manufacturers, vendors and technology providers. Tech companies are mainly there to show off their latest and greatest products, but Samsung injected a dose of honesty into its presentation.
"Honestly, we're not doing very well in the tablet market," said Hank Yoon, product strategy executive for Samsung.
Samsung has struggled trying to catch up with Apple's ever-popular iPad, which originally released back in April 2010. The iPad 2 followed in March 2011, and
the iPad 3 will be introduced next Wednesday
at an event in San Francisco, California.
Samsung Galaxy Note 10.1
But competition with Apple hasn't been Samsung's only problem. Being
attacked by Apple with lawsuits
is a whole different situation that started last April and continues today. Apple originally sued Samsung for patent infringement regarding devices like the Galaxy S 4G, pic 4G, Nexus smartphones and the Galaxy Tab 10.1. Apple managed to successfully ban the Galaxy Tab 10.1 in both Australia and Germany, but Samsung pulled a few punches of its own and lifted the ban in Australia last December.
In addition to the Apple-related problems, Samsung is trailing behind tablets like Amazon's Kindle Fire, which is categorized in the "more affordable" tablet realm. The Kindle Fire launched last November and quickly became a hot holiday gift item.
Some believe Samsung's overall production and sales strategies regarding its tablets were all wrong as well.
called it a "shotgun approach," where Samsung initially introduced a 7-inch version of
the Galaxy Tab
, then moved up to the 10.1-inch, and continued making all the sizes in between after that just to experiment with what customers like.
But Samsung's MWC presentation wasn't all doom and gloom. The company was happy to talk about its
new Galaxy Note
, which is a 5-inch smartphone that also acts as a tablet with a stylus called the S-Pen. In fact, Samsung expects to ship 10 million 5-inch Galaxy Notes. In addition, a 10-inch Galaxy Note is expected to replace the current 10.1-inch Galaxy Tab.
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RE: Litigation FTW
2/29/2012 2:12:11 PM
I don't think the lawsuits had much of an effect. If people wanted to buy Samsung tablets, they would. People were buying iPads in countries were it wasn't available. It was banned in Israel for a while, and people were still gringing them in from other countries. The demand for Samsung tablets just isn't that great...why get a copy when you can have the real thing for about the same price?
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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