IdeaPad maker has the knives out and is looking to kill the Galaxy Tab and iPad 2, by undercutting it on price.
When asked about the strategy behind its cut price $199 8GB IdeaPad, unveiled at IFA Berlin last week, a senior Lenonvo executive declared “any [manufacturer] would be giving money away,” referring to rivals bid to undercut leaders iPad.
The exec also sensationally claimed tablet maker No.2 Samsung was making huge losses in its Tab business as it looks to become a major name in the industry, Andrew Barrow, director of consumer products and pricing, told the Guardian.
The Galaxy Tab “sold 20,000 out [of shops], and Samsung claimed a million shipments in [to shops]”, Barrow claims.
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Samsung have remained tight lipped on the exact numbers of 7″ Galaxy Tab’s – released in Australia in October last year – sold but after one exec initially telling journalists 1.5 million earlier this year, it was later revealed this was the volume shipped as opposed to unit sales.
This is a practice known as “channel stuffing” say analysts, where manufacturers claim large shipments numbers in order to heighten product interest.
However, it is unlikely Samsung would be engaging in this practice, since the volume of returns would be enormous, analysts believe.
The Galaxy Tab, which has fallen dramatically in price since it was first launched, are looking to “buy share” from Apple, the Lenovo exec argues.
However, it takes one to know one, it appears, since the IdeaPad is looking to do exactly the same.
This is not the only bad press the Galaxy Tab has met, of late.
The new Galaxy Tab 7.7 was pulled from the IFA show in Berlin after Apple won a second injunction blocking the new device from going on sale in Germany.
This comes days after an Australian Court extended a ban on the 10.1 version of the Galaxy Tab.
This is not the first time the Chinese IdeaPad maker has attacked rival vendors – in August Lenovo CEO declared Apple’s high end tablet wouldn’t work in Chinese markets.
“Apple only occupies the high-end market. The high price tag of US$500 will not work in small cities, rural areas or lower-income segment,” CEO Yang Yuanqing said.
Instead, Lenovo’s 7 inch slate is aiming to fill the gap missed by the iPad and will operate Android Gingerbread 2.3 with a single-core Cortex A8 processor, 3MP camera, Wi-Fi for a cut price $199.
Lenovo grew faster than the top five PC makers this year and is No.3 spot PC maker by shipments, pushing Acer down to No.4, according to analysts IDC.
But whether it can clear the iPad or the Galaxy Tab out of the way is another matter.
If not, it has “other products in the pipeline,” Barrow insisted.