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Samsung Says It is "Not Doing Very Well" in Tablet Market

By - Source: CNet | B 10 comments
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But has high hopes for Note line.

Ever since Apple launched the iPad, the tech industry has been searching high and low for the iPad killer. With the launch of every new tablet, whether it's a traditional Android device or something more unique from Amazon, experts wonder if this tablet will be the one to knock the iPad off of its throne. Samsung, with its line of Galaxy Tablets has always been considered a serious competitor for Cupertino and its iPad, but the Korean company today admitted that it's not doing so well in the tablet market.

CNet reports that Samsung's Hankil Yoon made the admission at Mobile World Congress in Barcelona this week. That's right, while most companies use the likes of MWC to pump up their image, Yoon told journalists at a media roundtable, "Honestly, we're not doing very well in the tablet market." Yoon didn't elaborate on his statement, but said the company is hopeful that 2012 will be a good year for its Galaxy Note.

This week saw Samsung a 10.1-inch version of the Galaxy Note (pictured) at Mobile World Congress. The company also announced updated versions of the Galaxy Tab 7 and Galaxy Tab 10.1. The biggest difference between the Galaxy Note line and the Galaxy Tab line is that the Note features a stylus, which Samsung says is to enable content creation. Samsung's plans for these two lines seem a little murky. According to Yoon, the plan is for the Note's sales to eclipse the Galaxy Tab 10.1's sales. CNet's Roger Cheng says Yoon said it would be necessary to stay competitive:

"The best thing to survive in the market is to kill your products," Yoon said. "We want to stay competitive in the market."

However, when our own Andrew Ku was visiting the Samsung booth, he was told specifically by Samsung that the two lines were going to co-exist together. Similarly, a statement to the Verge implies Samsung means to offer customers several choices within the Samsung brand, as opposed to a one-line-fits-all approach.

"Seeking to kill your own product by releasing increasingly compelling devices might position Samsung as a confident brand. A brand ambitious to improve its products so that the choice for consumers is between several Samsung products rather than between Samsung and its competitors’ products."

Samsung's new Galaxy Tab 2 line will launch in certain markets in March, while availability for the Galaxy Note 10.1 is not yet known. The 5-inch Galaxy Note is already on sale, as is the Galaxy Tab in 7-, 7.7- 8.9- and 10-inch variants.

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  • 1 Hide
    Dandalf , 29 February 2012 17:50
    Well well. What happened to this "fastest growing segment"? When people say "tablet owner" they mean "iPad owner" because no one has a tablet that isn't an iPad. I'm surprised tech companies haven't figured it out yet. Only Apple fans will buy tablets because they care about looking cool and tablets look futuristic. Normal people will rarely buy tablets because we care about whats useful.
  • 1 Hide
    Toxxyc , 29 February 2012 18:18
    The reason because Samsung is lacking is because of price. An Asus EEE Pad Transformer Prime 64GB (brand new Tegra-3 one) is cheaper than the older 10.1 Samsung pad with less technology.

    But yes, iPad still leads the market, and as much as I dislike Apple, the iPad is a wonderful piece of hardware.
  • 1 Hide
    briggsy147 , 29 February 2012 18:29
    Samsung isn't doing very well in the tablet market? Maybe because there is no tablet market. For a market to exist there has to be demand. As Dandalf said, nobody wants one. There's a market for the iPad because people want Apple devices. Beyond that people don't want to pay £400 for a device with limited functionality when they can get a fully-featured laptop for less. A laptop may not be as sexy, but when it can essentially do everything a tablet can and more, for a lower price, most will plump for that.
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  • 0 Hide
    doive1231 , 29 February 2012 20:44
    I have a tablet and find it very useful (a Touchpad). It has largely usurped my desktop for browsing and general surfing. Agree with Toxxyc re: Samsung's pricing as I like Samsung's products but too expensive.
  • 1 Hide
    das_stig , 29 February 2012 21:02
    Simple idea, calculate the BOM + distribution costs + advertising costs + costs for R&D, deduct that from a 10% profit and the divide that by how many units you need to sell. Bet you come out with a price that can undercut Apple by a large margin.
  • 0 Hide
    watcha , 29 February 2012 23:38
    Have to admit I laughed a little when I read the headline. ;-)

    I don't think Apple is dominating because people want 'Apple' products rather than tablets - they are dominating because they are simply producing the best tablets at the moment. To suggest that people are so illogical to buy a product they don't need just because it's Apple - is a bitter fanboy type comment which has no place on a rational comment. I wonder if you'll be saying the same in a few years time when Apples market share has diminished below 50%.

    Look at any forecasts on the tablet market and Apples share - they all predict it will decline. This couldn't be the case if people were only buying it due to it being Apple.

    As for laptops being better - really? Harder to use (for average consumers), takes longer to load, heavier to carry, less battery life. A laptop at the price of the iPad couldn't play games anywhere near as well either, nor would it have all the apps and features such as GPS and multiple digital cameras. Honestly I think the iPad is quite cheap.

    That said, for me personally, I don't need one and so I've ever owned a tablet. I do realise that they can be very useful for some people though and there is a very real market.
  • 1 Hide
    Dandalf , 1 March 2012 00:13
    Watcha, you are trusting "forecasts" that sales will decline. Whose forecasts? They are frequently off by quite a margin. Also, if they do decline, why is that an argument against Apple fans buying stuff just because it's apple? It only means they have realized how stupid the iPad is and have gone back to their laptops.

    And laptops are better. You come to my university and try telling any of the students who have to type a 10,000 word dissertation that using a tablet is easier "for average consumers". You are ASSUMING all your "average consumers" want to do is browse the web, answer emails, and play Angry Birds. On my netbook I can do that plus edit waveforms, type essays, edit videos, use photoshop, then play Daggerfall or Eve Online. Also, enjoy your fingerprints.

    And please tell me if tablets are so amazing, why you don't personally have one? As Briggsy147 said above, there is no demand for this product, and never was. The industry imagined there should be and "panic-introduced" tablets in response to Apple. They still haven't realized though, that Apple can sell a turd in a white plastic case to millions of iFans, as long as it has an Apple logo on it.
  • -1 Hide
    watcha , 1 March 2012 01:10
    DandalfWatcha, you are trusting "forecasts" that sales will decline. Whose forecasts? They are frequently off by quite a margin. Also, if they do decline, why is that an argument against Apple fans buying stuff just because it's apple?


    Firstly - you're right, the forecasts may be wrong. If you want to base your argument on the fact that the iPad market share wont decline, fine. You'll be (obviously) proven wrong if that's your argument.

    I would say almost everyone on this site and in the industry expects Android to pick up market share.

    Secondly - you misunderstand market share. A market share can decrease whilst sales go up. This is precisely what is forecast in the case of the iPad. In other words, sales will INCREASE, but market share will DECREASE, making your point illogical.

    DandalfAnd laptops are better. You come to my university and try telling any of the students who have to type a 10,000 word dissertation that using a tablet is easier "for average consumers". You are ASSUMING all your "average consumers" want to do is browse the web, answer emails, and play Angry Birds.


    Er, no I'm not? Don't be dumb. That's like saying that saying there is a genuine market for sports cars means ASSUMING that everyone wants one. A nonsense, clearly. Should I try telling the students at your university that they all need to buy a Ferrari instead of their Citroen Saxo's and Corsas? And when they say, no 'we can't afford that, it's not the right car for us' - will that mean that Ferrari should shut all of their factories and go home?

    Having to write a dissertation is just one of hundreds of tasks that people in general might want to do. Being a student is just one of hundreds of vocational activities. Just because you believe the iPad doesn't excel in such a situation, doesn't make laptops 'better', it just means you believe laptops are better in that instance. There are hundreds of examples where tablets are more suitable, such as any situation where you aren't able to use a table, for whatever reason (such as when walking, having to stand on a busy train). There may also be instances where people want to game, and you can't sensibly game on any laptop you can buy for iPad money. People may also want the long battery life, so they can take their iPad easily on a long flight and not have to worry about it dying half way. I am naming some, but there are thousands. They are being used in business, education, in the military, in healthcare, all kinds of industries for the same reasons. None of these people necessarily 'only' browse the web or answer emails or play Angry Birds, that is a ridiculous sentiment.

    Finally - don't confuse me correcting you on the fact that a tablet market DOES exist, with me saying 'tablets are amazing'. Also, please don't lump me with you in the category of people who can't see past their own needs and their own specific requirements. I don't personally often find myself in situations where I could benefit from a tablet as much as other people do and can. That's why I don't have one, although I am considering an iPad 3.

    Dandalf
    On my netbook I can do that plus edit waveforms, type essays, edit videos, use photoshop, then play Daggerfall or Eve Online. Also, enjoy your fingerprints.


    Ironically, I do have a netbook. Netbooks are the most useless devices ever created. They are all sluggish, struggle when you try to do anything complicated, and some of them even have smaller screens than iPads. Far more useful are ultrabooks - but of course they cost a lot more money. Good luck working on your laptop whilst walking around, or playing high res high quality games on it, or recording videos and taking photographs with it. Etc. Etc Etc.

    Stop being so ignorant.


  • 0 Hide
    Dandalf , 1 March 2012 02:09
    Phew. Okay. Well done, you have successfully trolled me.

    Now then.

    I personally do not believe Android will EVER overtake Apple in tablet market share. The entire tablet phenomenon will simply die out, or "change" into some other hybrid form. (I am speaking in the short to mid term, long term no one can ever know) And since these "forecasts" have been wrong in the past - unless they are by companies filled with soothsayers and wizards (in which case I apologize) - they may be wrong again. You cannot say for sure I will be wrong, I cannot say for sure you will be. So stop throwing your e-willy around telling me I've "misunderstood" or I'm "Illogical".

    Your long-winded car analogy is desperate and superfluous. In addition you inadvertently proved *my* point in that paragraph. You say "it just means you believe laptops are better in that instance" and you are right - I believe they are better, just as you may believe differently. We all have our subjective beliefs and preferences. But let me just put a few things to you:

    1. How many people that have a tablet have discarded their laptop?
    2. How many people that bought a tablet, also have a laptop?
    3. What are laptop sales compared to tablet sales?
    4. Have you bought a tablet?

    I would argue that tablets are surplus to requirement. They are a nice "toy" but fulfill no need; a solution looking for a problem. If you are someone (like me) who owns a smartphone AND a netbook (two portable computers) and still think to yourself "I need something in between and I have hundreds to spend on that thing" then in my opinion you are a wealthy and/or stupid individual whose motivation for such a purchase is at least equal parts style-base as it is productivity-based. Thus iPads dominate the segment, because they look nice.

    Now I have to point out the hilarious irony you close on, where you tell me "stop being so ignorant". This comes after you say netbooks "are all sluggish" and are useless. Is your research from 2009? Not only can an AMD E-450 or an Intel Atom+ION netbook play decent resolution (which seems to be your measure of quality) games, but even a netbook a GENERATION OLD can play higher quality games on an iPad. Please. Gaming on an iPad? Now I know you are a troll. What is the best thing you are going to find on there? Some fun game where you sexually caress the screen to land planes, or defend a castle? With bunnies and rainbows, just in case it's too violent for Apple's filter? If I made a list of all the incredible quality games that are (and have been, sometimes for a decade) available on the windows platform, your head would explode. So I'll just say X-Com, Deux Ex, Baldurs Gate, and leave you with a useless netbook running a low-quality game at a terrible frame rate.
  • 0 Hide
    watcha , 1 March 2012 13:41
    Quote:
    Phew. Okay. Well done, you have successfully trolled me.


    Because I explained simple logic to you? Right.

    Quote:
    I personally do not believe Android will EVER overtake Apple in tablet market share. The entire tablet phenomenon will simply die out, or "change" into some other hybrid form. (I am speaking in the short to mid term, long term no one can ever know) And since these "forecasts" have been wrong in the past - unless they are by companies filled with soothsayers and wizards (in which case I apologize) - they may be wrong again. You cannot say for sure I will be wrong, I cannot say for sure you will be. So stop throwing your e-willy around telling me I've "misunderstood" or I'm "Illogical".


    1 - I never said Android will 'overtake' Apple. I said that its market share is believed by most to significantly increase.

    2 - I also said that you are correct that forecasts are not always right - and if you want to base your entire point on all of the market experts being wrong, and in contradiction to what I would say is the commonly held opinion, fine. My belief is that most people on here would strongly disagree.

    3 - Even if the forecasts and the commonly held educated view do turn out to be wrong, your point was illogical. You considered the case that I was right and that Apples market share went down, and concluded that this proved you right:

    Quote:
    Also, if they do decline, why is that an argument against Apple fans buying stuff just because it's apple? It only means they have realized how stupid the iPad is and have gone back to their laptops.


    Your logical failure and misunderstanding was not realising that sales can go up whilst market share decreases. As I already explained to you. You failed to grasp that point too.

    Quote:
    Your long-winded car analogy is desperate and superfluous


    .... he says, without a shred of justification. I may as well say 'your whole post is desperate and superfluous' , a good argument? Please. The car analogy proves by counter-example that for a market to exist it does not have to appeal or be suitable to every person. A point you evidently missed, and failed to see the relevance of.

    Quote:
    In addition you inadvertently proved *my* point in that paragraph. You say "it just means you believe laptops are better in that instance" and you are right - I believe they are better, just as you may believe differently. We all have our subjective beliefs and preferences.


    Wow, this is an even bigger logical failure. That laptops may be better for certain situations does not in any way at all, even remotely, prove your point that the tablet market is purely people who want Apple products. The car analogy, ironically, already proved that - a market can exist regardless of whether or not it is suitable for everyone. Remember, when you talk about 'the market', and the people who are buying, you are not talking about what 'you believe' - you are claiming to speak for 'the market' - which is everyone. The fact that 'We all have our subjective beliefs and preferences' is exactly why some people DO have a legitimate need or desire for a tablet - and not necessarily because it's an Apple tablet. Here was your original comment:

    Quote:
    Only Apple fans will buy tablets because they care about looking cool and tablets look futuristic


    Hardly talking about your own preferences, there.

    Quote:
    1. How many people that have a tablet have discarded their laptop?
    2. How many people that bought a tablet, also have a laptop?
    3. What are laptop sales compared to tablet sales?
    4. Have you bought a tablet?


    1 - Nobody knows (including you). It's also not relevant.
    2 - Nobody knows (including you). It's also not relevant.
    3 - I would assume that laptop sales are higher. I would also assume that tablet sales are growing faster. It's also not relevant.
    4 - I've already told you this. And it's also not relevant.

    The series of questions you pose is very worrying given how completely irrelevant they are, so I have far more relevant counter-questions which should open your eyes

    1 - If nobody who has ever bought a tablet discarded their laptop, would that mean they didn't buy a tablet, or prove that they only bought the tablet because it was Apple?
    2 - If every single person who has a tablet also owns a laptop, would that mean they didn't buy a tablet, or prove that they only bought the tablet because it was Apple?
    3 - If tablet sales are smaller than laptop sales, does that mean that there isn't a market for tablets?
    4 - Do my personal preferences and choices dictate the market?

    The obvious answer to all 4 questions, is no.

    Despite being irrelevant:

    Quote:
    And, in a not-surprising survey from Morgan Stanley/Alphawise, the biggest product category likely to be cannibalized by potential iPad customers is Netbooks/laptops. Forty-four percent of potential iPad customers say they'll get it over a notebook. Interestingly, 27 percent said they'd buy an iPad over a desktop.


    Quote:
    I would argue that tablets are surplus to requirement. They are a nice "toy" but fulfill no need; a solution looking for a problem. If you are someone (like me) who owns a smartphone AND a netbook (two portable computers) and still think to yourself "I need something in between and I have hundreds to spend on that thing" then in my opinion you are a wealthy and/or stupid individual whose motivation for such a purchase is at least equal parts style-base as it is productivity-based. Thus iPads dominate the segment, because they look nice.


    In this entire paragraph you are talking only about yourself and your own opinions. You say they are surplus, other people don't. You say they fulfil no need, people buying them disagree. You say 'if you own a smartphone and a netbook' - not all people do. In other words, every part of your sentence by its own nature doesn't apply to everyone. And for your point to be at all relevant to 'the market' not existing - it would have to apply to everyone. What is emerging, slowly, is that you are realising that for you, personally, you don't want a tablet. The mistake you made is being so ignorant in drawing a correlation between your OWN needs, and that of the market.

    Quote:
    This comes after you say netbooks "are all sluggish" and are useless. Is your research from 2009? Not only can an AMD E-450 or an Intel Atom+ION netbook play decent resolution (which seems to be your measure of quality) games, but even a netbook a GENERATION OLD can play higher quality games on an iPad. Gaming on an iPad? Now I know you are a troll. What is the best thing you are going to find on there? Some fun game where you sexually caress the screen to land planes, or defend a castle? With bunnies and rainbows, just in case it's too violent for Apple's filter? If I made a list of all the incredible quality games that are (and have been, sometimes for a decade) available on the windows platform, your head would explode. So I'll just say X-Com, Deux Ex, Baldurs Gate, and leave you with a useless netbook running a low-quality game at a terrible frame rate.


    This is simply not true. Even the fastest netbooks out today which are priced at or below iPad price, cannot play the latest games in anywhere close to the frame-rate an iPad can. If you think they can, you are sadly mistaken. Even top of the line gaming laptops struggle to play the latest games, and any that are capable of it have ridiculously short battery lives. This, again, is common knowledge:

    Quote:
    When it comes to games, netbooks leave a lot to be desired. Netbooks can run any PC game that is playable without an optical drive, but their performance is so poor that all the best high-end games are out of reach. Premium netbooks equipped with nVidia's Ion graphics or those built on AMD's platform fare better, but they still force users to accept too many compromises. Here, the fact that the iPad is a separate platform requiring specific support works to its advantage. Even Flash-based Web games can be difficult for a netbook to handle: Many won't fit in the limited-size browser window, and others often bog down when the game's action gets hectic.


    http://www.pcworld.com/article/193352-3/ipad_vs_netbook_its_a_close_call.html