Samsung Flagship Tablet Introductions Come Amid Period of Stagnant U.S. Tablet Sales

Samsung’s launch of premium 8.4- and 10.5-inch Galaxy tablets comes amid a period of “no growth” in the high-end segment of the Android tablet market, NPD analyst Stephen Baker told Consumer Electronics Daily.

The premium tablets command $399 and $499 price tags, but “price isn’t the problem” the Tab S models will face when they ship in a few weeks, Baker said. “The issue is, what am I going to do with an 8- or a 10-inch tablet -- or Android tablet when I have an iPad, or a 12- or a 14-inch notebook or a 5- or a 5 1/2-inch phone?” Baker asked rhetorically. “The use cases start to shrink, and the utility on those products starts to be challenging for most consumers,” he said.

The meteoric sales growth that tablets enjoyed as a nascent, disruptive product category when they launched in 2010 has waned, Baker said. Although there’s still growth in the segment globally, “there isn’t any tablet growth in the U.S.,” he said. Baker cited ownership rates in the 50 percent range, “where things start to slow down” in the CE industry. In general, most tablets seem expensive to consumers compared with a high-end smartphone or a lower priced notebook, he said. The only part of tablet market that’s growing is the entry-level Android segment where the average selling price is $80, Baker said.

Samsung hyped screen quality as a primary differentiator for its flagship Tab S line at last week’s launch, spotlighting the Super AMOLED technology it borrowed from its Galaxy smartphone line. The Tab S’s Super AMOLED screen, with 2,560 x 1,600 resolution, is said to deliver a wider color range, deeper contrast and “truer blacks,” making the tablets’ feature roster read like a bullet list for one of Samsung’s TVs. Also reminiscent of a TV launch, the company pushed the thin and lightweight design. On-board Netflix will feed an HD stream to the Tab S, one of the few Android devices to offer Netflix HD viewing, Samsung said.

Samsung is taking pre-orders for the Wi-Fi versions of the tablets, which it said in a news release will be available in July. Amazon gave a release date of June 26 next to a pre-order button. The Tab S will also be sold at Best Buy, Fry’s, Office Depot, Office Max, P.C. Richard & Son, Sears, Tiger Direct and Walmart.com, the company said. Later this year, cellular versions will be available from AT&T, Sprint, T-Mobile and Verizon, Samsung said.

Other features include a fingerprint sensor for security and for access to individual user profiles; a multi-window app viewer, enabling viewing on two windows at once; a SideSync feature that allows users to make and receive calls via a connection to a smartphone and the ability to drag and drop files from a smartphone to the tablet.

Meanwhile, Logitech didn’t waste time jumping on the Tab S announcement, bowing a Bluetooth keyboard case for the 10.5-inch tablet. The Bluetooth keyboard’s battery can last up to three months on a complete charge, which complements Samsung’s claim of 11 hours’ battery life on a single charge. The keyboard case will be available this month for $99, Logitech said.