Samsung, Toshiba offer 'me-too' tablets seek to battle iPad

Samsung Electronics and Toshiba unveiled tablet computers in Berlin on Thursday, aiming to take market share from Apple's iPad with their lower-priced "me-too" devices.

Toshiba said at the IFA consumer-electronics fair that the recommended price for its Folio 100 tablet in Europe is $511, undercutting the iPad, which goes for about $640 in the region.

Samsung's Galaxy Tab, which like Toshiba's Folio will debut in Europe next month, said it will let phone operators determine the price.

"Looking at the iPad price, alternative tablets should be sold at below $300 to be appealing to consumers, unless you have a strong brand to support the premium or a carrier to subsidize the hardware," said Carolina Milanesi, a Gartner analyst.

Apple has sold more than 3 million iPad units since its April 3 introduction, and will continue to dominate the market through 2012, according to researcher iSuppli.

BlackBerry maker Research In Motion is planning to introduce in November a tablet with a 9.7-inch screen and Wi-Fi capability, according to two people familiar with the company's plans. Verizon Wireless and Google have discussed a tablet that would run on Android software, and Dell released its $299.99 Streak 5-inch tablet last month.

Hirai said 23 companies are planning to bring tablet computers to market, making a price war inevitable.

Samsung and Toshiba said they see strong demand and expect to garner sizable market shares in the years ahead.

"Analysts are forecasting maybe 13 million units this year, and next year they are forecasting 30 million devices, including the (Galaxy) Tab devices.," said DJ Lee, Samsung's sales head for mobile communications. "In my view, the global demand could be even bigger."

Samsung, which expects to sell through major U.S., European and Asian phone carriers, even in China, will coordinate pricing with the operators, although, "We are working to give people a very attractive and competitive price," Lee said.

The greatest challenge for the "me-too" manufacturers will be marrying the content, operating system, touch technology and the various hardware components. Many will be picking from a pool of commonly available applications, as opposed to Apple's approach of tailoring applications specifically to the device.

Gartner's Milanesi said to avoid drastic price cuts, tablet makers may have to differentiate their products, especially as many work with Google's Android as their operating system.

For many of the companies, the competition is only beginning, Milanesi said.

"Competition will be tougher and tougher in the tablet segment, especially when Taiwanese and Chinese companies start making these devices," she said. "To be appealing to consumers, tablets should be sold at below $300."

At the Berlin show, Stephan Thiel, a 49-year-old banker from Hamburg, shopped around for tablets.

"The Toshiba tablet is very interesting," he said. "I'm not sure I need all the applications that are on the iPad."

The Toshiba tablet "is still quite expensive, but I like the screen and would use it at home, for example, to show photos and so on," he said.