The Samsung Galaxy Tab Pricing Conundrum

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As you can see in this chart I swiped from Engadget, Samsung’s Galaxy Tab has a bit of a problem here in the US… in terms of pricing – both amount and inconsistency. The iPad broke the touchscreen tablet market wide open. Sure, tablet devices existing long before Apple came along with their 10″ contender. But very few cared. So let’s think of the 7″ Android Tab an underdog attempting to make inroads against the current market leader. And one obvious place they can compete quite favorably appears to be on price. As another Engadget editor tweeted about a week ago:

People forget that Samsung makes the Galaxy Tab’s display, memory, processor, AND battery. So retail price really is high (for consumers).

Beyond hardware, data pricing decisions confuse me. On AT&T, the iPad currently runs $25 for 2GB of 3G. Fortunately, AT&T matches iPad pricing with the Tab. But the other carriers all clock in at higher dollar amounts (if not actual $/mb rates). Additionally, some of the wireless providers require service commitments and activation fees. It’s all very messy compared to Apple’s simplicity.

Then there’s the software platform itself… Current versions of Android weren’t really designed to power larger screen devices. Perhaps leading to a slew of lukewarm Galaxy Tab reviews. Seems like the general iOS versus Android comparison stands – more polish (Apple) versus more flexibility (Google). And at mostly higher prices or when considering contracts, a higher percentage of people will choose polish.

15 thoughts on “The Samsung Galaxy Tab Pricing Conundrum”

  1. Is it just me, or does anyone even care about 3G on these new tablets?

    Give me wifi for under $300 and i’m happy. No contracts, no bandwidth caps, no B.S!

    Archos 70 anyone?

  2. Yeah, that is an EXCELLENT point. I recently traded in an aircard for a $10/mo Boingo WiFi subscription and I’m mostly covered everywhere I need a fix.

    Unfortunately, the first round of US Tabs all have 3G modules integrated whether you use them or not. So WiFi-only contract-free customers are subsidizing that chip expense.

    I’m real curious to see how the Nook Color platform evolves. At $250, with a web browser, Pandora, and eReader, it could be enough for many at a reasonable price.

  3. “And at mostly higher prices … a higher percentage of people will choose polish.”

    I think Steve-o nailed this a few weeks back when he monologued during the earnings conference call.

    It’s not about folks choosing polish vs non-polish. It’s about folks choosing 10″ vs 7″.

    I’m tablet-less, and don’t expect to buy one this holiday season. But if I were, why would I buy a 7″ tablet that costs more than a 10″ tablet, even if the polish issue didn’t exist?

    Apple will win the 2010 holiday season tablet war mainly because of hardware, not software…

  5. I’m not quite sure where I land on tablet sizes yet… the iPad can get heavy after extended use and isn’t really a one-handed device. Whereas the Tab looks a bit more comfortable in that respect.

    Regarding our purchases – Melissa really, really wants an iPad. But I really, really want her to wait for v2. Whereas, I’m passing on the concept for now – not sure it solves any problems or meets any needs I’m not comfortably handling in other ways.

  7. “Melissa really, really wants an iPad. But I really, really want her to wait for v2”

    That’s a hard call.

    Of course v2 will be better, and it’ll age much better a couple of years into the future. But at the same time, there is added value in having one in your hands starting now. All of the iOS devices are being developed so rapidly that it always seems to good idea to wait on your purchase.

    On a somewhat similar issue, my problem is that the NBA season is underway and I want to dramatically upgrade the size of my Samsung CFL-backlit LCD TV. But I imagine that if I wait until mid-January, I’ll be able to get the exact same model I want for 20% less. Is it worth it to wait the two months?

  8. “I don’t understand what Samsung is doing.”

    Getting in on the ground floor of the Android tablet market.

    They’re going to get smashed in terms of market share this holiday season. Cupertino has a massive head start in both hardware and software development. But it still makes sense for Samsung in the long-term.

    Android’s market share victory in phones will eventually be replicated in the tablet space.

  9. Petey, At the very least, I think she might appreciate video chat. I’m envisioning a scenario where she chats with her niece or my mom. Of course, the Tab comes with a front facing camera… ;)

    Chucky, at $400 (without a 3G chip, without a subscription) it’d make more sense. Their pricing will do them in. But, like I say, we’ll see reductions… They’re not going to have a significant impact at ~$600, even with the carriers pumping them.

  10. The pricing for the Tab is bad enough (Sammy should be discounting them to undercut iPad to get market penetration), but data plans are the worst part. Why can’t I simply add this device to my family plan and pay whatever it costs to have 3rd line? Not to mention that Sprint version doesn’t even have 4G that Sammy’s own Epic has :(

    Regarding iPad — with new version out in April, you have two choices: wait or get iPad & sell it before right v2 comes out (assuming resale market is good on iPads).

  11. The recent Business Insider Survey finally confirmed a few things I had assumed about iPad sales but had never seen stats on:

    http://www.businessinsider.com/ipad-survey-results-2010-11?slop=1#slideshow-start

    Approximately half of iPad sales are Wi-Fi only. And only about half of the 3G models are on a data plan. All of which mean that Samsung is screwing up and leaving a lot of potential sales on the table. Google needs to relax the 3G requirement to get access to the marketplace, and stop with the fud about Chrome OS vs. Android for tablets.

    As far as size, the iPad is a fine size, but too heavy. I’m not convinced something between 7″ and 10″ wouldn’t make better sense though.

  12. Oh, and Dave I assume you’re going to have to wait until at least next April and maybe even next June for an iPad v2. If that works for you, then wait. I’m not expecting anything earth-shaking other than a forward facing camera and FaceTime though. Although with only about 7% of smartphone users making video calls I’m not sure that would be enough to justify a new version so there must be something else… Maybe a higher rez display?

  14. “Hm, maybe I’ll find a TJ MAXX nearby and save $100.”

    I don’t even want an iPad, but at $400, it starts to approach being an inescapable impulse buy as a toy.

    —–

    As far as video chat goes, I have no interest, so I’ve never even tried it out. But given the ergonomic and human issues at play, wouldn’t FaceTime be more pleasant on a phone size device than a tablet size device?

    And an iPad along with an iTouch is definitely a better deal than a Galaxy…

    —–

    I become increasingly annoyed with Cupertino with every passing week.

    I assume the 7 second delay before the navigation bar comes up on the Apple website is now a permanent “feature”.

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