Blindsided by iPad 2, Samsung reconsiders Galaxy Tab strategy

Samsung Galaxy Tab on Sprint

Wednesday's announcement of the iPad 2 has seemingly caught Apple's biggest competitor off guard, and Samsung is apparently reevaluating its next moves. In comments to Korea-based Yonhap News Agency, Samsung's mobile head Lee Don-joo said that the next iPad's sleek new design and competitive price are challenges.

The Korean electronics manufacturer's Galaxy Tab tablet is widely considered the biggest threat to the iPad's dominance in the sector. About two million have sold since its debut last September, making it the best selling tablet next to the iPad.

However like most tablets, it still has not been able to compete very well with Apple in terms of price.

Unsubsidized the Galaxy Tab can cost as much as $750, although subsidies have brought down the price to $300 with a two-year contract with a wireless carrier. Regardless, this requires users commit to a data plan for a set period of time, which also adds to the overall cost of ownership.

The Tab comes with a seven inch screen versus the larger 10.1-inch screen of the iPad. Samsung recently debuted a 10.1-inch model to compete with Apple on this front, but has not announced pricing as of yet. Lee said that the larger screened device was to be more expensive than its smaller cousin.

"We will have to think that over," he said.

Lee also says Apple's ability to produce a new model with advanced functionality at the same price as before has produced a challenge for Samsung. "We will have to improve the parts that are inadequate," he mused.

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