With Galaxy Tab, Samsung aims to lead in tablet war

7-inch compact device helps strengthen PC portfolio

By Kim Yoo-chul

The digital tablet-style format is not completely new.

It has been around for over a decade now.

Just like the iPod, which made a fresh impetus and became the new standard for almost all digital music players, tablet PCs, which also came on the market just a few months ago, seems to have grabbed everyone’s fancy.

Industry officials have no big questions over a ``time for tablets,’’ and a Korean consumer electronics major is hoping for the better position in the new segment.

Samsung Electronics, which is also the world’s biggest technology company by revenue, is taking on smartphone and PC majors in the highly-lucrative and rapidly-growing tablet PC market with its latest such device ― the Galaxy Tab.

The launches will stir up the intense competition between companies to more capitalize on the public’s new-found love affair with the iPad-style devices in the lead-up to year-end.

Some entry-level tablet PCs have been criticized over everything from poor touch-screen performances to being too heavy.

But, the Tab is much lighter and more portable and just as useful, while also featuring an advanced LCD screen.

Samsung says the Tab is the current answer to rival Apple’s iPad. The device is the result of its years-long efforts for the leadership in portable mobile PC-related markets.

The market for tablet PCs is expected to grow to as much as 60 million in sales next year and experts say the relative dearth of tablets _ only Apple, Samsung and Dell have models on sale ― is set to be remedied by a raft of new devices to be shown at the Consumer Electronics Show (CES) at the beginning of 2011.

``Samsung is eager to eat up bigger slices in the new category of devices between traditional PCs and smartphones, taking a cue from the success the iPad ― a 9.7-inch touch-screen tablet that began selling in April,’’ said a high-ranking Samsung executive.

In a consistent move, Samsung is using the ongoing G20 summit as the right stage to raise its profile in tablets by offering the digital gadgets to some key business executives, said Hong Won-pyo, executive vice president of Global Product Strategy in the company’s mobile communication division.

Compact device

The Tab is not weighty and has advanced portability over Apple’s iPad.

It uses a 7-inch TFT touch-screen display with 1024 by 600 pixel resolution. The weight is 13 ounces (0.4 kilos) or about the weight of an unopened can of soda.

Because of its smaller size, it fits better into the back pocket of jeans or the inside pocket of a blazer. The Tab uses Google’s Android 2.2 (Froyo) operating system as its benchmark source, making it possible to support Adobe Flash 10.1

The Tab has two cameras ― a 3-megapixel one on the back and a 1.3-megapixel one on the front for videoconferencing and chat functionality. The device also carries a battery that’s rated for seven hours of video playback.

``Samsung is saying the ease in which applications could be formatted for the Tab without lots of additional coding, however, the compact size tells that the device is more appropriate for the things users do with smartphones,’’ said Han Seul-ki, an analyst at Woori Investment.

Things are getting better as a growing number of content developers are injecting more of their resources to provide customized applications ― the critical factor for the business sustainability of ``smart’’ devices ― for the Tab.

Next cash-cow

It’s debatable whether Samsung Electronics is seriously considering the tablet PC business as its next earnings revenue, however, the overall mood is upbeat.

Company officials and market analysts say the ``bullish stances’’ of the success of the Tab is mainly due to inspiring initial responses from consumers in Samsung’s key markets and good reviews by authorized tech-related publications.

Samsung is aiming to sell over 6 million of the Tab by the end of the next year from its estimated one million sales this year, said Kim Hwan, vice president of its mobile communications business.

``Operating profit margin in the tablet business will be higher than that of smartphones,’’ according to the executive.

The Tab will be introduced to 160 mobile carriers globally compared to 110 carriers of its Galaxy S smartphones ― one point that well represents its drive for the tablet business.

For the boom, the company is reviewing plans to expand its tablet PC lineups as it has been in internal talks to introduce a 10-inch tablet or one smaller than that of the current Galaxy Tab.

A company spokesman is still mum on unveiling its next plans from size to software upgrades; however, analysts say the Korean consumer giant will be better positioned to compete with the current market leader Apple with more variants from next year.

``Another driving point that makes the future of the Tab better is the Android platform is becoming more popularity with content developers, PC and handset majors, threatening Apple’s iOS,’’ said another Samsung executive, asking not to be identified.

Still, Apple was controlling 95 percent of the emerging market with its popular iPads in the July to September quarter, according to the market research firm Strategy Analytics (SA).

SA said the total market grew to 4.4 million tablets in the September quarter from 3.5 million in the previous quarter and added Apple has quickly leveraged its famous brand.

But SA’s analyst Neil Mawston claimed other platforms such as Android, Microsoft, MeeGO of Nokia and Intel, Hewlett-Packard’s WebOS and RIM’s Blackberry have already ``much ground’’ to make up, giving the picture rosy for more sales of the Galaxy Tab.

The Android OS was the second-largest on the market after iOS during the latest quarter. The researcher said the share will rise in the current quarter.

By riding the industry’s shifts, Samsung is keen to secure its bottom line on its home-turf by releasing the device via an exclusive partnership with the nation’s top carrier SK Telecom.

The Korean market is well regarded as the test-bed for the better success of digital devices overseas.

The iPad will go on sale sometime this month here, as Apple’s exclusive Korean partner KT has been in the final stage to decide subsidy programs and the suggested retail prices.

``As well as overseas, Samsung has invested to offer better applications that fit Korean appetites,’’ said Shin Young-june, a senior Samsung spokesman.

Samsung had earlier been delayed its local debut of the Tab, however, some of the content such as ``Readers Hub’’ and ``3D Navigation’’ drew much attention at a recent event to mark the local debut.