With the trademark dispute between Apple and the Chinese company Proview Technology, it presents an opportunity for Samsung and their Galaxy Tab line of tablets which they have not seen. The dispute between Proview Technology and Apple is about whether Proview’s subsidiary had permission to sell the rights to the trademark name of “IPAD” in China. It is that disagreement which is now resulting in Apple seeing lower courts blocking the sales of the iPad 2 and with the iPad 3 coming, would block that version as well. In the city of Huizhou, Apple lost a ruling which bans the iPad in about 40 cities. In the city of Shanghai, Proview is asking a court to block sales of the iPad and they are expected to prevail there as well. It seems that the current tactic is to go city by city in an effort to stop sales of the iPad and protect the trademark name of “IPAD”
While this trademark battle goes on, it provides opportunities for Samsung. Especially after Apple had the Galaxy Tab blocked in Germany. With these activities, Samsung has an opening where they can sell their Galaxy Tab tablets with Apple slowly being taken out of the picture. In China, people are looking to purchase technology and Apple has the majority of the sales in the tablet area. With the iPad being taken off store shelves, it leaves other companies to sell tablets without the competition of Apple. And Samsung can fill the void which is now opening in China to promote and sell their tablets.
Samsung has enjoyed strong sales in other parts of the world and could take this opportunity to add a number of their tablet sizes to the market in China to provide choice. The one thing which Samsung must do is to lower the price of their Galaxy Tab products to entice consumers in China to come take a look at what they have to offer. The iPad has name recognition and Samsung needs to create that same name recognition as the iPad woes continue. Samsung has 3% of the market in China for tablets and this opportunity may not last very long. Apple is aggressively fighting the legal action of Proview Technology and Samsung has a limited window to grab more of the market in China.