By Kim Yoo-chul
LG Electronics is caught in the crossfire between iPad maker Apple and Galaxy Tab manufacturer Samsung Electronics in the battle to reign in the local tablet market. Chances are low for LG to survive unscathed.
Tablets are another key area to improve corporate profitability along with smartphones, but LG has no options as tablet users in Korea simply choose between either Apple’s iPad or the Android-based Galaxy Tab.
``LG has reached a broad consensus that our Optimus Pad would fail to create an impact,’’ said an LG executive, Monday.
LG scrapped its plan to release the Optimus Pad in Korea, and the high-ranking LG executive said that it was mainly due to the lack of device competitiveness and higher pricing.
An LG Electronics spokesman said it was re-examining the feasibility of introducing the Optimus Pad locally, citing sluggish tablet sales and carriers’ heavy interest in the Apple and Samsung tablets.
``LG doubts that tablets would create big revenue amid ailing mobile-related businesses. We have less room to spend big in tablets,’’ said the executive, asking not to be identified as he is not authorized to speak to the media.
Second-tier tablet makers are struggling as the nation’s leading telecom carriers are giving more subsidies to buyers of either the iPad or the Galaxy Tab.
Apple has sold over two million iPads and just began selling the updated second version of iPad to local consumers. Supply is very tight, according to officials.
Despite higher inventories for the current Tab Samsung has fixed its plan, introducing a bigger 10.1-inch screen tablet this month with a similar price tag to that of the iPad 2.
``We admit that the local tablet market remains nascent. But Samsung wants to benefit from the `first-mover’ advantage in the lucrative segment. That’s why we are pushing tablets,’’ said a senior Samsung executive on condition of anonymity.
``Pricing is the key. We cut manufacturing costs for the upcoming tablet,’’ added the Samsung executive.