Samsung Rethinks Their Tablet Pricing Structure After iPad 2 Announcement

http://appadvice.com/appnn/2011/03/samsung-rethinks-tablet-pricing-structure-ipad-2-announcement

Apple obviously made a big bet on the launch of the iPad in order to get the volume pricing necessary to get ahead of the competition. Now that the tablet format has established itself as a significant form factor for the future of the personal computer, you’d think that the likes of Samsung would have the courage of it’s convictions and secure large volumes and good prices for components, but perhaps not. Apple has probably been smart enough to buy up sufficient of the current capacity for components that they are in effect locking out the competition, either with supply constraints or on price.

Apple are known to make significant investments in production, even whilst still outsourcing the actual supply, so give itself a significant advantage. And it’s successful enough at making profits from it’s current range to ensure a large war chest should someone try to fight it out.




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