Motorola is looking to neutralize Apple's headstart in tablets by talking up its LTE connectivity, something the iPad is unlikely to match until next year. Samsung, which will also have an LTE tablet this year, is less bullish in the face of the iPad 2, admitting it would rework elements of its planned 10.1-inch Galaxy Tab to make it more competitive.
Lee Don-Joo, EVP of Samsung's mobile communications arm, told the Korean Yonhap News Agency that parts of the new, enlarged Tab are "inadequate" in light of the iPad 2 launch. Although that was seen as largely an incremental update by most of the industry, the appeal of its slimmer, lighter form should not be underestimated, according to Samsung.
The iPad 2 is 8.8mm thick compared to 10.9mm for the GalaxyTab 10.1.
Samsung sources indicated an update to the larger Tab would follow by the summer, a speed of response that has not always been characteristic of the giant vendor, but which is enabled by its increasingly tight control of its own supply chain. Many are looking for a more dramatic enhancement of the Tab range this year too, including the use of the Super AMOLED display, which is exclusive to Samsung and a major feature of its Galaxy S smartphone family.
The insiders hint at a dilemma - one that will be common to many vendors seeking differentiation in the fast moving tablet space. Samsung could hold back on the Tab 10.1 to make it thinner, but delaying its shipment (expected around April), thus giving Apple more room to consolidate its lead. Or it could sell the existing model at a reduced price and follow up as quickly as possible - but possibly not until late summer or early fall - with a completely reworked model with premium features. This would mirror Samsung's initial tablet strategy - while most Android vendors held back until the Honeycomb OS release, optimized for larger screens, appeared, it built brand and some market share with a more basic model, the 7-inch Tab.Lee did not indicate which route the firm would take but did say that Samsung might reconsider its price for the GalaxyTab 10.1. "The 10-inch was to be priced higher than the 7-inch, but we will have to think that over," he said. All four national US carriers offer the smaller Tab, Verizon and Sprint for $300 with two-year contract, T-Mobile for $250 with contract, and AT&T for $550 without contract. The iPad 2 prices range from $499 for 16Gbytes and Wi-Fi only to $829 for 3G/Wi-Fi and 64Gbytes. Motorola has taken the brave step of pricing above the iPad, touting the hardware capabilities and LTE speeds of its new Xoom, which is currently exclusive to Verizon.
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