Samsung is reportedly reconsidering the form-factor and price of their forthcoming Galaxy Tab 10 following Apple's iPad 2 announcement this week.
"We will have to improve the parts that are inadequate," [Lee Don-joo] told Yonhap News Agency. "Apple made it very thin."
The 7-inch Galaxy Tab was priced at nearly US$900 without a two-year contract from mobile operators, while the price of the iPad 2 starts at $499, with the most expensive model costing $829. Samsung did not announce the pricing details for the 10.1-inch tablet.
"The 10-inch (tablet) was to be priced higher than the 7-inch (tablet) but we will have to think that over," Lee added.
I'm guessing that wasn't a unique reaction by competitors and would-be competitors, and is refreshingly candid despite the fact that persistent rumors should have given Samsung et al reason to be reflective long before this week.
The reality is this -- even if Android OS tablets eventually outnumber iOS tablets (aka iPad) like Android phones do iOS phones (aka iPhone), they'll be split among numerous manufacturers making it unlikely any of them will individually ship more product than Apple. Since Apple can purchase and even pre-pay for components in huge volumes their economies of scale will likely far outstrip what separate Android manufacturers can manage. That, combined with COO Tim Cook's legendary supply chain management, will keep Apple's costs low and, even with their traditionally beefy margins, their overall price points low.
Likewise Apple has a Senior Vice President of Design -- how many other companies put that much emphasis on design? Apple's focus and the profits they make to feed that focus mean they are often far ahead when it comes to the build quality of the products they can field.
Given that Apple is already bringing iPad 2 to market before most are bringing their first tablet -- great artists ship -- Samsung is probably wise to consider and reconsider everything from price to package. But really, it's not iPad 2 they need to worry about. It's iPad 3.
If Samsung or Motorola or HTC can release their iPad 3 competitor within the next 6 months -- the way Google released the Nexus One 6 months into the iPhone 3GS product lifecycle -- then things will start to get interesting.