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The tablet market is quickly becoming a place where consumers are migrating. As Apple has pointed out, iPad sales are quite high. In fact, during its fiscal fourth quarter alone, the company sold more than 4 million iPad units. And considering the device’s price starts at $499, the company was able to generate some serious revenue during the period.
But as more and more tablets come to the market, Apple’s success in that space could decline. After all, customers now have more options than they once did. And those options are now highlighted by the Samsung Galaxy Tab. The Samsung model is a 7-inch tablet that some observers say could be even better than the iPad for certain customers. That’s quite a claim. And it’s one that Apple won’t take lightly. But for Samsung, it’s a claim that it hopes to turn into a generous share of the tablet market.
Read on to find out why Samsung has such high hopes for its Galaxy Tab.
1. The tablet market is big and lucrative
Make no mistake that the main reason Samsung wants to see its Galaxy Tab perform well in the tablet market and effectively match Apple’s iPad is its desire to generate major revenue. As Apple’s aforementioned sales show, the tablet market is big and lucrative for companies that know how to do it right. With the Galaxy Tab, Samsung thinks it has done something right, and now it wants to capitalize.
2. The device runs the most popular mobile operating system
Samsung has high hopes for its Galaxy Tab because it knows that it’s running the world’s most popular mobile operating system. The device comes with Android 2.2 installed. If the Galaxy Tab was running Windows, Samsung’s product would have a difficult time appealing to customers. Consumers don’t necessarily expect to see Windows on a tablet-that operating system is reserved for desktops and laptops, mostly-but they do expect Android. And they know that Android has become an alternative for iOS.
3. It combines the iPhone’s and iPad’s nicer features
One of the best things Samsung did with its Galaxy Tab was double-down on the features that consumers like in both the iPhone 4 and the iPad. The tablet sports an iPad-like design with a touch screen and 3G connectivity. But it adds in one very important feature that the iPhone 4 has-video conferencing-that could mean the difference for some consumers between opting for Samsung’s tablet over Apple’s. Simply put, the Galaxy Tab is both iPad- and iPhone 4-like. Samsung knows that could help sales.
4. It can be the “other” iPad
Samsung realizes that it has delivered a relatively impressive product. And with the right marketing strategy, the company has the ability to offer the “other” iPad in the tablet space. Going forward, at least in the short term, Apple’s iPad will likely lead the space. But if consumers realize that their second option is the Galaxy Tab, Samsung will solidify its position in the tablet market.
Samsung Has Multiple Mobile Carriers on Its Bandwagon
5. Samsung has the ubiquity part worked out
One of the smartest decisions Samsung’s management made with the Galaxy Tab was to make it available on a slew of carriers. The device can be purchased via T-Mobile, Verizon and, soon, Sprint. There is even talk of AT&T jumping on the Galaxy Tab bandwagon. By offering such ubiquity in the tablet space, Samsung has positioned itself to capitalize heavily. It’s no wonder it has such high hopes.
6. Samsung wants to back up its claims
When the Galaxy Tab was first announced, Samsung made it clear that it believed it was offering a product that could match the iPad in every way. In fact, the company said that it couldn’t find a single iPad feature that beat its own product’s features. Samsung must deliver on the high expectations it’s set for the Galaxy Tab if it wants to be taken seriously in the tablet market. But if it succeeds, Samsung will garner the credibility that comes with showing it knows what it’s doing.
7. A single failure makes the next device harder to release
Samsung has such high hopes for the Galaxy Tab because it doesn’t want to know what the market would look like if the device fails. In the tablet space right now, it’s Apple and every other company. If Samsung can distinguish itself, it will undoubtedly solidify its position in that market. But if it falls short, the company will have a hard time regaining consumer excitement. Rest assured that Samsung’s management is fully aware of that.
8. The value is right
Although some might take issue with the Galaxy Tab’s $600 starting price without a two-year contract, it seems to be valued quite well. And that has helped improve Samsung’s high hopes for the device. At $600, it’s just $100 more expensive than Apple’s cheapest option, and $29 less expensive than Apple’s most affordable 3G option. That puts the device in the sweet spot for budget-conscious consumers. Buyers who won’t mind entering into a two-year contract should also find something to like in T-Mobile’s $400 offering for the Galaxy Tab.
9. It can prove Steve Jobs wrong
At his company’s most recent earnings call, Apple CEO Steve Jobs said that he didn’t believe 7-inch tablets would work, and pointed to the iPad’s 9.7-inch display as the best option. Samsung’s high hopes for the Galaxy Tab are undoubtedly partly rooted in its desire to prove Jobs wrong. If the Galaxy Tab can be a success, Samsung can go a long way in showing customers that Steve Jobs isn’t right all the time.
10. It has enterprise potential
Although the Galaxy Tab might be a consumer-focused product, it’s hard to argue against its potential for enterprise adoption. After all, the device runs Android, it’s cheaper than comparable iPad models, and it offers video-chat functionality, which could be extremely important for enterprise customers. The enterprise won’t drive Galaxy Tab sales, but it could eventually play a part.