The Samsung Galaxy Tab has emerged as a viable iPad alternative, though it’s hardly an iPad killer. Android fans may prefer the Tab — and Samsung may have a higher profit margin if iSuppli’s breakdown of manufacturing costs holds up.
The Tab materials cost $205.22, significantly less than iSuppli’s $264.27 estimate for the 16GB 3G version of Apple’s iPad. But the reason that it costs less to manufacture may bode well for the iPad’s competitive differentiation: The Galaxy Tab offers a smaller and lower-resolution screen than Apple’s device.
“While the design approach makes the Galaxy less expensive to produce than the iPad 3G, it also makes for a product that lacks the same usability,” said Andrew Rassweiler, director, principal analyst, and teardown-services manager for iSuppli. “The Galaxy Tab’s screen resolution, size and technology are not at the same level as the iPad. This is a critical difference, given the fact that the display is a key differentiating factor for the iPad.”
All About Perceived Value
The Tab does have some features that the iPad doesn’t — and it’s not just Adobe Flash. The Tab offers a gyroscopic microelectromechanical systems sensor for gaming. But the iPad offers something the Tab does not: In-plane switching technology, which enhances the viewing angle and picture quality.
On the other hand, the Galaxy Tab sports a primary three-megapixel autofocus camera along with a 1.3-megapixel front-facing or video-conferencing camera. The iPad doesn’t have a front-facing camera. What’s more, the Tab actually works as an oversized cell phone as well as a tablet computer.
“If the Galaxy Tab delivers a quantitatively clearly better and differentiated experience than the iPad, then it doesn’t matter to the consumer how much it costs Samsung to build it,” said Michael Gartenberg, an analyst at Gartner.
“If it doesn’t deliver as good of an experience or a…