Samsung Electronics Co., the world's second-largest mobile-phone maker, plans to offer a tablet computer to ride the wave of demand it expects for Apple Inc.'s iPad.
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"We will respond," J.K. Shin, president of Samsung's mobile-communication division, said in an interview last night in Barcelona, Spain. Apple's tablet computer "will create a new market and new demand," adding that it's "too early" to give more details on Samsung's plans.
The South Korean company provides the processor that powers Apple's iPad, according to market research firm ISuppli Corp., putting Samsung in a position of being both a components supplier and a competitor for the Cupertino, California-based company. The iPad, a touch-screen tablet computer, will go on sale by March, Apple Chief Executive Officer Steve Jobs said at the Jan. 27 debut of the device.
"This is normal, we have to compete in the market," Shin said. "At the same time, they are our customer and we are the supplier of components to them."
Goldman Sachs Group Inc. estimates that Apple will sell 6 million iPads this year. By contrast, the market for mobile phones will reach 1 billion units and PC sales will be about 300 million. Still, the iPad is a high-profile attempt to crack a market that other companies have set their sights on, according to ISuppli analyst Jagdish Rebello.
Samsung's tablet computer plans also show how the Suwon, South Korea-based company aims to offer more higher-end mobile devices. The company said on Feb. 14 that it will start offering a 1-gigahertz processor handset, called the "Wave," as it aims to bolster its smartphone business.
Source: Simon Thiel and Kevin Cho, BusinessWeek
