At first glance, Samsung’s Galaxy Tab 3 doesn’t seem to fit its $199 price tag. The price of the tablet, which is slated to be released on July 7, is about on par with other tablets that have 7-inch screens, but this device only stores 8GB of data and the screen resolution is only 1024×600 pixels. Both Google Inc (NASDAQ:GOOG)’s Nexus 7 and Amazon.com, Inc. (NASDAQ:AMZN)’s Kindle Fire HD have 16GB of storage and also cost $199.
In taking a closer look at specs of the new release, however, Samsung has added many other features that could get buyers’ attention and keep shares of the company’s stock from plunging. These features include a IR blaster to control your TV, a slot for a 64GB-compatible microSD card, and various other features that improve entertainment. The device also boasts a 3-megapixel camera, 1 GM of RAM, and a Marvell PXA 986 1.2GHZ CPU.
Despite the 8GB of storage, Samsung has impressed with this newest tablet. I just hope that for investors at Samsung, consumers don’t get caught up on the lack of storage.
What this means for the share price
The gadget looks sleek, and between this and its new features I would expect sales to pop. Furthermore, the firm is now taking on a larger role as a major global smartphone provider and actually beat sales of the iPhone in May with its Galaxy S4. With the previous Samsung Galaxy, the company was able to reach its target of selling 63 million units in the fourth quarter of 2012; that equals about 500 devices sold per minute.
Google’s new tablet also set for July
The second generation of Google Inc (NASDAQ:GOOG)’s Nexus 7 tablet is reported to cost $30 more than the Galaxy Tab 3, but it features 16GB of storage. An exact release date hasn’t been set, but some details have surfaced. Other than having twice the amount of storage, the Nexus 7 doesn’t seem to have a lot of features that would set it above the Tab 3. The screen is slightly better, however, with a pixel density of 323 pixels per inch. It also features 4 processor cores, LTE radios and a 4,000 mAh Li-ion battery.
Overall, Google Inc (NASDAQ:GOOG) is attractive to investors. The company isn’t dependent on tablet sales, either. In fact, the firm looks set to release Google Inc (NASDAQ:GOOG) Glass next year, which could garner huge excitement for the company. BI Intelligence estimates that the company will sell 800,000 units in 2014. The device is only usable when it is connected to a smartphone, however, which could significantly hinder sales.
Apple Inc. (NASDAQ:AAPL)’s new tablet rumored to be out in third quarter
The release date of Apple Inc. (NASDAQ:AAPL)‘s iPad Mini 2 is still only a rumor, but many have said that it will come in the third quarter. Due to the long timeline before the release, the tablet’s features and price are still being speculated about. According to TechRadar, however, the gadget is set to feature 2048×1536 pixels and a larger screen than its mini tablet counterparts at 7.9 inches. According to an RBC Capital Markets analyst, the iPadMini 2 could experience more sales than the previous version because it is likely to have several new suppliers. The real determining factor of whether the new iPad sells well over the others is its price point, which hasn’t been released.
With the fiscal third quarter report expected in July, those wondering whether to pick up shares of the firm should wait to see the quarterly earnings report. I’d expect earnings to be lower than in the past due to there not being many new products at the company. Revenue estimates have dropped by about $1.1 billion. The current estimate is $35.2 billion, which is $700 million over Apple Inc. (NASDAQ:AAPL)’s midpoint estimate. That’s cause for concern, because the company’s own estimates show there is a decent chance that Apple Inc. (NASDAQ:AAPL) will miss analyst estimates and cause the stock to drop.
Tablets are important components
Samsung’s new tablet release could be a turning point in the technology. While the device only has 8GB of storage, the new features could show that Samsung is an innovator. Much of the success of Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) has been anchored on the fact that they are perceived to be leaders in breakthrough technology. However, if Samsung’s new product is everything that the company claims it will be, then consumers and investors might turn to the South Korean company to for breakthroughs instead.
Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.
The article Is Samsung’s New Tablet a Game-Changer? originally appeared on Fool.com and is written by Phillip Woolgar.
Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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