Just when we thought that Samsung had woken up to the fact that it could not compete with Apple by bringing in more expensive tablets, the outfit has announced that it will stick to its plans and charge the guns anyway.
In a move which would have General Cardigan applauding, Samsung has back-tracked on its earlier reports that it is giving its Tablet plans a re-think after Apple announced its new iPad2.
Last week it was was reported how Samsung would be overhauling its Galaxy Tab 10.1 to more ably compete with Apple’s new tablet.
Korea’s Yonhap News Agency quoted the company’s executive VP of mobile Lee Don-Joo as saying “We will have to improve that parts that are inadequate. Apple made it very thin,” and “The 10-inch was to be priced higher than the 7-inch, but we will have to think this over.”
It seems like common sense to us. While Samsung could duplicate the technology that Jobs’ Mob was producing, there was no way it could keep charging the obscene mark ups on the gadgets that Apple charged.
However now it seems that Samsung is now denying the whole thing and the 10-inch Galaxy Tab will launch “as scheduled” and probably at the ridiculous price of nearly $1,000.
Don-Joo, who was the bloke quoted in the earlier story is now saying that for a remodel the device would obviously be delayed. He said that Samsung will continue to make every effort to provide the most powerful, well-designed and productive model device to customers.
However what he did not rule out was a price cut for the new Galaxy Tab, which could hit shelves in mid-summer. However Samsung is worried that it will not make enough money off the beasts to make it worthwhile.
One of the things we do not understand about the tablet makers trying to compete with Apple is how they are managing to stuff up everything. Here they have a fairly simple product which is being shipped with a high mark up to a select crowd of people who are not exactly discerning.
Instead of undercutting Apple with a slightly better product, they seem to be keen to copy Jobs’ Mob and launch a similar product, later, which is slightly higher priced.
This means that Jobs can keep control of the market by occasionally releasing a new gizmo which is slightly different. You know you are using the wrong business model when Apple is cheaper than you.
Still “charge the guns” and “into the valley of death” is still a “good” strategy. See more here.