Samsung surprises many with a price cut on the coming Galaxy Tab models
In the tablet world, prices have focused around the model established by Apple and the iPad. All other manufacturers have been delivering their tablets based on what Apple is charging. Using Apple’s pricing model has improved Apple’s market share as others have not done well as a result. That has now changed with Samsung using the Amazon Kindle Fire as the price model and reduced their prices on the upcoming Galaxy Tab 2 7.0 and 10.1 tablet models. The Galaxy Tab 2 7.0 tablet will be priced at $249.99 and will be arriving on April April 22nd with the 10.1 model arriving on May 13th priced at $399.99.
These are big differences from previous pricing from Samsung where the Galaxy Tab 10.1 is being priced on average at $499.99 when you see it on sale. The drop of $100 is going to have people looking at the Samsung Galaxy Tab 2 10.1 as a little more relevant simply because of the lower price than the iPad. Samsung should see increases in sales with the 10.1 model.
The Galaxy Tab 2 7.0 tablet is going to be the one to watch. At a price point of $249.99, they are now down in the area where Amazon made their entry in the market with the $199.99 Kindle Fire and quickly grabbed market share following the November launch. The Barnes & Noble Nook has been reduced to $199.99 as well after launching last year at a higher price. Price is becoming the big item for consideration in the lower end market segment and with the launch by Samsung of a reduced price Galaxy Tab 2 7.0 tablet, we are going to see price wars coming where the price becomes the big selling features.
The Galaxy Tab 2 7.0 has obviously reduced the cost of internal components to arrive at a lower priced model. This means that some of the cutting edge hardware may not be included, but at this price, a growing consumer market may not care as much as the middle and higher end markets. As compared to the Kindle Fire, the 7.0 model is a better buy for consumers. The screen resolution of 1024 by 600 may not be as great as higher end models, it will do just fine in the market segment which it is being targeted at. It is a step up from the Kindle Fire and has a big name behind it.
The Samsung Galaxy Tab 2 7.0 will ship with Ice Cream Sandwich pre-installed on the tablet which is big news. Samsung and other manufacturers have been having difficulty getting Ice Cream sandwich upgrades out for their products. Having this already on the coming tablet provides a much better experience than on the Kindle Fire or the Nook tablet. And consumers will recognize that value difference as well. The arrive of the 7.0 model is over a week away and it will not take long to see if the pricing difference will promote better sales.