Samsung decreases orders for 10.1-inch tablet components, say Taiwan makers
Samsung Electronics has reduced orders for components used in 10.1-inch tablets, according to Taiwan-based supply chain makers, because 10.1-inch tablet sales have been far below expectations due to strong competition from 7-inch models.
Samsung has been shipping about 8-8.8 million tablets each quarter in 2013 and is currently the second-largest tablet vendor worldwide, lagging only behind Apple. Samsung is adopting a strategy to flood the market with various tablets including 7-, 8- and 10-inch models, as it seeks to dethrone Apple.
Samsung shipped about 17 million tablets in the first half of 2013 with 7-inch models accounting for 70% of the shipments. The 7-inch 8GB Galaxy Tab 2's US$169 and the new 7-inch 8GB Galaxy Tab 3's US$199 price points have both helped boost Samsung's 7-inch tablet sales significantly, the sources noted.
However, Samsung's 10.1-inch tablets have performed weaker than expected. Samsung has recently cut its 10.1-inch Galaxy Tab 2's price to US$319 in North America and is selling its 10.1-inch Galaxy Tab 3 for US$379 and Galaxy Note for US$449, but the tablets have not been selling as well as expected despite the fact their prices are more attractive than Apple's 9.7-inch iPad 4.
Samsung should have no trouble achieving annual table shipments of 35 million units in 2013, but if its 10.1-inch tablets continue to see weaker sales than 7-inch models, Samsung will have to rethink its strategy for the tablet market, the source said.
The sources pointed out that if Samsung is able to achieve good development for the 10.1-inch segment, it should help the company expend in the large-size notebook market with developments such as convertible notebooks. Since 7-inch tablets are positioned more toward the smartphone segment, Samsung's success in the 7-inch segment may only provide limited assistance for the company in its move to strengthen its PC lineup. It is also impacting the company's profitability.
Samsung is already dominating the LCD TV and smartphone industries. The notebook market - where shipments will reach 180 million units in 2013 - is likely to be Samsung's next target, the sources commented.
http://www.digitimes.com
Samsung has been shipping about 8-8.8 million tablets each quarter in 2013 and is currently the second-largest tablet vendor worldwide, lagging only behind Apple. Samsung is adopting a strategy to flood the market with various tablets including 7-, 8- and 10-inch models, as it seeks to dethrone Apple.
Samsung shipped about 17 million tablets in the first half of 2013 with 7-inch models accounting for 70% of the shipments. The 7-inch 8GB Galaxy Tab 2's US$169 and the new 7-inch 8GB Galaxy Tab 3's US$199 price points have both helped boost Samsung's 7-inch tablet sales significantly, the sources noted.
However, Samsung's 10.1-inch tablets have performed weaker than expected. Samsung has recently cut its 10.1-inch Galaxy Tab 2's price to US$319 in North America and is selling its 10.1-inch Galaxy Tab 3 for US$379 and Galaxy Note for US$449, but the tablets have not been selling as well as expected despite the fact their prices are more attractive than Apple's 9.7-inch iPad 4.
Samsung should have no trouble achieving annual table shipments of 35 million units in 2013, but if its 10.1-inch tablets continue to see weaker sales than 7-inch models, Samsung will have to rethink its strategy for the tablet market, the source said.
The sources pointed out that if Samsung is able to achieve good development for the 10.1-inch segment, it should help the company expend in the large-size notebook market with developments such as convertible notebooks. Since 7-inch tablets are positioned more toward the smartphone segment, Samsung's success in the 7-inch segment may only provide limited assistance for the company in its move to strengthen its PC lineup. It is also impacting the company's profitability.
Samsung is already dominating the LCD TV and smartphone industries. The notebook market - where shipments will reach 180 million units in 2013 - is likely to be Samsung's next target, the sources commented.
http://www.digitimes.com
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