‘Multi-model’ release, key to Samsung Electronics’ strategy to be No. 1 in smart pad market
Samsung Electronics aims for the top position in tablet PC market with its multi-model strategy, which has previously been implemented in the smartphone market. Until last year, Samsung Electronics’ market share was not even half that of Apple’s iPad. However, in the third quarter this year, the company narrowed down the gap to within 10 percentage point and has been making a close pursuit since.
According to the industry on the 7th, Samsung Electronics is increasing its market share by expanding the tablet PC lineup as the company’s multi-model launch strategy.
Unlike Apple, Samsung Electronics has set out a strategy to release products that satisfy diverse market demands by making use of the strengths of its manufacturing division. Samsung Electronics has completed a product lineup by combining various elements, such as screen size, S-pen and operating system (OS), and is forecast to showcase other new products including one with large 12” screen according to market conditions in the future.
Samsung Electronics’ tablet PC lineup is comprised of Galaxy Tab series, Galaxy Note series and Windows operating system (OS) based ATIV tab. In July, Samsung Electronics released three Galaxy Tab 3 models, such as 7.0, 8.0 and 10.1. Targeting preschool education market, the company also released a derivative model, ‘Galaxy Tab 3 Kids.’ Earlier this year, Samsung Electronics showcased Galaxy Note 8.0 and 10.1 mounted with the S-pen and recently opened to the public the upgraded ‘Galaxy Note 10.2 2014 Edition.’ As such, Samsung Electronics released approx. ten tablet PC models a year.
This is contrasting to how Apple, No. 1 in tablet PC market, releases only two models each from iPad and iPad Mini lineups a year. As the cycle of new product launch is long, iPad sales start to decrease some time after each product launch.
The global tablet PC market share in the third quarter shows the effects brought in by the differences between Samsung Electronics’ and Apple’s strategies. According to a market surveyor, IDC, Apple iPad and Samsung Electronics were ranked the first and the second in market share by recording 29.6% and 20.4% of market shares respectively in the third quarter. Apple kept its No. 1 position. However, its gap from Samsung Electronics has narrowed significantly in comparison to the same period last year. In the third quarter last year, Apple and Samsung recorded 40.2% and 12.4% of market shares respectively. The gap between the companies decreased from 27.8 percentage point to 9.2 percentage point in only a year.
“Apple’s slow performance has been resulted by the company not releasing any new iPad products in the second and the third quarters,” explained an IDC insider. “Apple’s weak performance led to a favorable turn for Android and Windows tablet PC is continuing to struggle."
The trend in tablet PC market is similar to that of the smartphone market displayed earlier. In the smartphone market, iPhone's share was higher in the beginning. However, it gave way to Samsung Electronics that targeted the market with multiple models. In particular, as the market matured, demand for products with a wider price range and differentiated performances grew.
“Tablet PC market is forecast to grow more than laptop PC market and the market for 10” or larger sizes will grow more than tablet PC market as a whole,” said Samsung Electronics President Shin Jong-gyu for IM Division. “We will actively respond to the various market demands and gradually increase our strengths with thin bezel and pen functions.”
According to the industry on the 7th, Samsung Electronics is increasing its market share by expanding the tablet PC lineup as the company’s multi-model launch strategy.
Unlike Apple, Samsung Electronics has set out a strategy to release products that satisfy diverse market demands by making use of the strengths of its manufacturing division. Samsung Electronics has completed a product lineup by combining various elements, such as screen size, S-pen and operating system (OS), and is forecast to showcase other new products including one with large 12” screen according to market conditions in the future.
Samsung Electronics’ tablet PC lineup is comprised of Galaxy Tab series, Galaxy Note series and Windows operating system (OS) based ATIV tab. In July, Samsung Electronics released three Galaxy Tab 3 models, such as 7.0, 8.0 and 10.1. Targeting preschool education market, the company also released a derivative model, ‘Galaxy Tab 3 Kids.’ Earlier this year, Samsung Electronics showcased Galaxy Note 8.0 and 10.1 mounted with the S-pen and recently opened to the public the upgraded ‘Galaxy Note 10.2 2014 Edition.’ As such, Samsung Electronics released approx. ten tablet PC models a year.
This is contrasting to how Apple, No. 1 in tablet PC market, releases only two models each from iPad and iPad Mini lineups a year. As the cycle of new product launch is long, iPad sales start to decrease some time after each product launch.
The global tablet PC market share in the third quarter shows the effects brought in by the differences between Samsung Electronics’ and Apple’s strategies. According to a market surveyor, IDC, Apple iPad and Samsung Electronics were ranked the first and the second in market share by recording 29.6% and 20.4% of market shares respectively in the third quarter. Apple kept its No. 1 position. However, its gap from Samsung Electronics has narrowed significantly in comparison to the same period last year. In the third quarter last year, Apple and Samsung recorded 40.2% and 12.4% of market shares respectively. The gap between the companies decreased from 27.8 percentage point to 9.2 percentage point in only a year.
“Apple’s slow performance has been resulted by the company not releasing any new iPad products in the second and the third quarters,” explained an IDC insider. “Apple’s weak performance led to a favorable turn for Android and Windows tablet PC is continuing to struggle."
The trend in tablet PC market is similar to that of the smartphone market displayed earlier. In the smartphone market, iPhone's share was higher in the beginning. However, it gave way to Samsung Electronics that targeted the market with multiple models. In particular, as the market matured, demand for products with a wider price range and differentiated performances grew.
“Tablet PC market is forecast to grow more than laptop PC market and the market for 10” or larger sizes will grow more than tablet PC market as a whole,” said Samsung Electronics President Shin Jong-gyu for IM Division. “We will actively respond to the various market demands and gradually increase our strengths with thin bezel and pen functions.”
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