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November 11, 2010

Price May Be a Problem as Galaxy Tab Takes on iPad

Does Apple’s iPad have its first real competition among tablets? Samsung’s Galaxy Tab goes on sale next week at three of the four major U.S. carriers — Sprint Nextel, T-Mobile and Verizon Wireless. AT&T will also carry the Tab, with the rumored sale date being later this month.

The Tab will be priced at about $400 with a two-year data contract, or about $600 without a contract. This contrasts to the lowest-priced iPad, which starts at $499 for the Wi-Fi version and more than $600 for the 3G model without a contract. The pricing comparison could become a defining factor in whether the Tab becomes a contender.


‘First Real Competition’

Avi Greengart, an analyst with industry research firm Current Analysis, said the Tab is “the first real competition, but it may not be fully competitive at this price.” He pointed out that its seven-inch display and lighter weight, compared to the iPad’s 9.7 inches, might lead consumers to expect a significantly lower price.

“The Tab feels like an oversized smartphone,” he said, while the iPad “feels more like a computing device than just another media player.”

On the positive side, Greengart said the Tab is “extremely responsive, has Android 2.2, and you can add applications,” although there aren’t many apps yet that are sized for its display. The iPad, he noted, has about 35,000 apps specifically designed for that device.

“If the Tab was competing in a world without the iPad,” he said, “it would have cleaned up.” But at this point, the pricing may be a stumbling block, he added.

Some observers have noted that these diagonal screen measurements don’t convey the actual impression, in that the Tab’s visible screen is less than half that of the iPad. The Tab’s size and weight, however, means it can be more easily used in one hand.

Other differences…

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