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Samsung Galaxy Note 10.1 could be More Profitable than iPad

Galaxy Note 10.1

Source: Galaxy Note 10.1 | Samsung

According to a teardown report released by Information Handling Services last Friday, Samsung makes $56 each by selling their new Wi-Fi-only Galaxy Note 10.1 compared to Apple’s iPad. That’s because the tablet’s material costs just about $260, compared to the Cupertino-based company’s $316-worth of component for their 16GB iPad with Wi-Fi.

IHS’ Senior Director Andrew Rassweiler said that some recent tablets have made little to no hardware profit. This includes Google Nexus 7 and Amazon Kindle Fire, which both costs $199. Instead, they rely on online content and services to make money.

On the other hand, the Samsung Galaxy Note 10.1 “could turn a decent per-unit margin for Samsung and stands to be a money maker—if the company can extend the recent success of the Samsung Galaxy Note smartphone to its tablet line.”

What makes this possible is that the company can rely on its own internal supplies for a large number of tablet components. This includes the flash and DRAM memory, the core processor, battery and many more. IHS estimates that the Galaxy Note 10.1’s 1.4 GHz quad-core Samsung Exynos processor costs $18.80, while its display and touchscreen are the most expensive components at $100.

Inside Samsung Galaxy Note 10.1

Samsung released their Galaxy Note 10.1 last August 16, and it costs $499.99. The tablet runs on Android 4.0 and features a digital stylus. It also boasts a 1280 x 800 display, proprietary charging port, and the TouchWiz software that allows a user to run multiple apps side-by-side on the tablet’s screen.

However, JR Raphael of Computer World stated that the Samsung Galaxy Note 10.1 is “basically a reworked version of the Galaxy Tab 2 with an added stylus.” And that where he sees the potential problem.

The tablet feels a bit clunk, and it runs on the already-dated Android Ice Cream Sandwich. Moreover, its TouchWis vision adds clutter and noise into Google’s recently simplified user interface. Its ability to run multiple apps is also limited to a small number of applications. The list doesn’t even include Gmail or the Chrome for Android browser.

Nevertheless, the company promised that they are gearing up for an Android 4.1 update for the Galaxy Note 10.1. But whether it will see the light of day or not remains to be seen.

 

An HSPA+ wireless version of the Samsung Galaxy Note 10.1 is also available in different countries for $640. IHS estimated that the components in the model costs $283. Furthermore, the company promised that an LTE version of their latest tablet will be available later this year.

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