Dear God, Samsung, are you trying to kill the Galaxy Tab in its crib?

22 September 2010

Bitterwallet - Samsung Galaxy Tab pricingOn Monday I was overtly enthusiastic about the new Samsung Galaxy Tab looking the business, offering more functionality than an iPad, and without some of the physical drawbacks - despite having hands the size of shovels, I find the iPad is a little too wide and heavy to be held comfortably. OK, so we haven't seen how Android's operating system will manage in tablet form, and UI is one area that Apple has licked - regardless, the Galaxy Tab has plenty going for it.

When the Galaxy Tab was launched at the beginning of the month, we were a little nervous about what the price might be. We considered how Samsung might price it in order to gain some traction in the mainstream market. Apple's 16GB iPad with 3G is priced at £529, while Dell priced its 5" Streak at £449 - more than the entry level iPad. While size isn't everything, it's likely the public may expect to pay less for a smaller product, not more.

Bearing this in mind, and bearing in mind the iPad has had on the market in a very short space of time, the current pricing of the 7" Galaxy Tab baffling. A better word would be lunacy. Amazon are listing it for £599.99, and that's reduced by £200 - Samsung's RRP is £800, or roughly the same price as flying from Heathrow to JFK and buying the equivalent iPad in New York. But is £600 much of an improvement? Without the marketing clout or the awareness of Apple, how is pricing the Galaxy Tab at cost £70 more than the iPad 16GB 3G going to win consumers over?

The Galaxy Tab may be running on Android, a platform favoured by developers over Apple's iOS, but consumers don't care. It may have some consumer friendly features like cameras and Flash support - it won't matter. It's still expensive. And not only is it expensive, but it's so expensive that when Apple introduce FaceTime to the iPad at the beginning of next year, they'll still be able to undercut Samsung. And if the rumours are true and Apple are looking to release a 7" tablet too, that could undercut the Galaxy Tab's price by twice as much.

Short-term, a £600 price tag seems damaging, especially at Christmas when consumers are likely to spend on gadgets; it seems like the perfect time to make in-roads into Apple's market share. Long-term, it's suicide. The Galaxy Tab is due for release on 1st November - hopefully Samsung will come to their senses before then and price it to sell.

TOPICS:   Mobile   Gadgets


  • singhster
    "A better word would be luncacy" - if only luncacy was a word..
  • The B.
    It's beyond expensive, I'd want an open source OS based pad to be around the £300 mark, ie. about the same price as a decent netbook which basically does the same thing.
  • Alexis
    I'm wondering if they just can't manufacture it cheaply yet? I bet they're not even making much of a markup on £600.
  • DoubleBack
    Android favoured by developers? The stupid ones, possibly.
  • Chris
    So a device which is more powerful than an ipad costs more than an ipad? Whats wrong with that?
  • Poosan B.
    Most consumers don't give a shit about OS. Apple OS is cooler than Android, just the name Android makes it sound geeky and less cool. Android only stands a chance as a competitor if it is highly featured and significantly undercut it's Apple equivalent on price.
  • Poosan B.
    Undercuts, even. Curse the auto correct on Android 2.2.
  • Person
    They're clearly pricing it higher then the iPad to make it look more expensive. Nobody's going to buy it if it's cheaper that the iPad - most would happily pay extra to get the "better" product. It's definitely a risky move, but I'm sure one blogger doesn't have more knowledge of the market than Samsung's marketing department. But it's better to give it a chance by overpricing it, than just giving up altogether and underpricing it.
  • The B.
    @Doubleback, care to clarify that statement? I ditched my iPhone because it was locked down too tightly, I could only write code for it if I went out and bought a Mac and frankly after the third time it bricked itself on an update I'd had enough. Now I have an Android which I can pretty much do what I want with and write handy little apps if I need them, it's never crashed or bricked itself, I can switch battery's, I can add more memory or keep different sd's and switch them around and best of all it has flash so I can stream whatever I fancy off the web (including games). Okay, the down side is that the Google Market is pretty cruddy, but give it a while and it'll improve.
  • Paul S.
    See, you'd think that wouldn't you? And I'd agree. That's what those marketing people are paid for. Yet the fact remains they did try and get away with an RRP of £800 before bloggers turned on them and slapped them round to common sense. If that was their plan form the start to garner press, fair enough, but it hardly does a new product any favours to do so. I take the point about positioning themselves as more expensive, but Apple products are already expensive, so I'm not sure what market they'd be attempting to win by doing that.
  • paul a.
    This price is clearly insane. its either a false price, or Samsung have completely lost the plot. i would not even put it against the £529 iPad, as i have no interest in the 3g feature at all, i was firmly expecting this to cost less than the £429 basic iPad. i certainly have no interest in tying myself into a long term data contract to get this device for a reasonable price. i am not too worried though, i want a tablet device to take the place of my laptop for basic web browsing while at home (that includes Flash), and 7in was going to be a little too small for them needs. there will be far more options available in 2011, at far better prices.
  • person
    I smell something dodgy going on behind the scenes Im thinking that Samsung are planning on getting together with the mobile networks and selling this at massive discounts when you take out a contract, that way buying it on a contract looks like such a good deal to the usual customer ( OMG £299ish on a rrp of £800) and both the mobile company and samusng get the money from it. Either way I hope this bombs now because it was looking like such a good device, then samsung got greedy
  • chris
    stupid money even for a gadget freak like me, doesn't fill any gap between my 13 inch laptop & desire so won't be on my Christmas list
  • Chris
    @chris Does anything fill that gap at all?
  • chris
    An amusing bright new toy at less than 350 notes could do it, but an Android device for £600? it ain't happening.
  • ipadbod
    Isnt it strange that when the ipad was launched, it was widely criticised for being too expensive. Now, with a few non-vapourware alternative tablets coming on the market, it's looking more and more like Apple got it bang on.
  • klingelton
    @chris I don't think i could fit something that large in my gap.
  • klingelton
    And I hate to agree with ipadbod - he's right. however, it's still a pointless peice of tech that will sit in a trendy manbag only to see the light of day in wireless coffee shops "I have an iPad don't you know..." scoff scoff.
  • zleet
    I was expecting the price to be the same as the basic Ipad as Samsung could then claim they have better features for the same cost but if that price stands it's insane. ---- On an unrelated note why do I now get a 'comment awaiting moderation' notice when I post? I liked how Bitterwallet was a bit sarky and quite funny in it's comments, would kill the site for me if it's censoring now.
  • stomm
    I was really interested in this for a high-end technical manual/book/pdf reader (with the ability to run android apps too) - but now the cost is way too much. What would you lot recommend as an alternative then? Something with a good battery, not bothered with phone functionality (i.e. 3G) - just something that could handle PDF's on a massive screen. Under £300 if possible! It's a shame they brought this out for such an expensive price, drop it to about £200-£300 and I would've considered it..
  • Andrew
    The people who bought iPads because they are cool and trendy won't even know the Samsung exists. Their sales will come from hardcore geeks with a fair amount of cash to'll never gain 0.5% of the mobile device market share.
  • Adorno
    way way way too expensive, Samsung... Too bad beacouse i am looking for a 200-300 euro tablet,
  • How B.
    [...] last week we pulled apart the proposed pricing for the Galaxy Tab, the new 7″ table from Samsung that was launched three weeks ago and goes on sale on 1 [...]

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