Samsung Exec Says Aspects Of Galaxy Tab 'Inadequate'Samsung Exec Says Aspects Of Galaxy Tab 'Inadequate'

Samsung Galaxy Tab 10.1

Samsung debuted the Galaxy Tab 10.1 at the Mobile World Congress event in February. The tablet is a significant improvement over the seven-inch tablet Samsung shipped last year. Aside from the larger screen, it packs better cameras and, most importantly, Android 3.0 Honeycomb rather than Android 2.2 Froyo. That may not be enough to help it sell, if we're to believe what a Samsung product manager said.

Lee Don-joo, executive vice president of Samsung's mobile division, admitted to Yonhap News Agency that the thin design and low price points of the iPad 2 are going to cause trouble for Samsung.

The iPad 2 measures 8.8 millimeters thick -- a 33% reduction in thickness compared to the original -- and is slimmer than the iPhone 4. The Samsung Galaxy Tab 10.1 measures 10.9 millimeters, or about 20% thicker than the iPad 2. Apparently, this is making Samsung somewhat self-conscious.

Lee said to Yonhap, "We will have to improve the parts [of the Tab 10.1] that are inadequate. Apple made [the iPad 2] very thin." In other words, Lee is admitting that the Tab 10.1 is now too thick, and they need to figure out how to make it thinner. (By the way, how much longer do you think he's going to be employed by Samsung?)

The price point is also causing vexation for Samsung. The Galaxy Tab, which had only a seven-inch display, sold for $600 unsubsidized in the U.S. (or $400 with a contract). That's more than entry-level iPad, which sells for $499 (or $629 with a 3G radio). Samsung was planning to charge more than $600 for the Tab 10.1, which is a more robust device in almost every capacity.

"The 10-inch (tablet) was to be priced higher than the 7-inch (tablet) but we will have to think that over," Lee said. Is Samsung willing to drop the price point -- which will squeeze margins -- just so the product has a chance of selling?

Samsung isn't going to be the only company facing a tough battle to meet the price points of the iPad/iPad 2. Motorola's 32-GB Xoom tablet, for example, sells for $599.99 subsidized, and $799.99 without a carrier subsidization.

RIM's playbook, which has a seven-inch display, is going to cost about $500 for the entry-level version. HP hasn't priced its webOS-based TouchPad tablet, nor have we seen final prices for the LG G Slate or the HTC Flyer.

Can any of them compete against the iPad 2's $499 starting price?