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Samsung's 10-Inch Tablets Hurt By Apple's iPad Mini, Other Small Tablets

Samsung's 10-Inch Tablets Hurt By Apple's iPad Mini, Other Small Tablets

Apple's (NASDAQ: AAPL) full-size iPad is not the only tablet being hurt by the company's hugely popular iPad Mini.

It turns out that Samsung's (OTC: SSNLF) 10.1-inch tablets may also be falling victim to the success of Apple's 7.9-inch device.

According to DigiTimes, Samsung has reduced orders for components used in 10.1-inch tablets. Taiwan-based supply chain makers are blaming the component reduction on lower-than-anticipated sales of large tablets.

This report comes just a few weeks after rumors claimed that Samsung is developing a 12-inch tablet. The rumor surfaced just a couple weeks after Apple was rumored to be developing a 12-inch iPad.

History shows that Samsung rumors tend to correlate with those from Apple. For example, Samsung was not rumored to be developing a new smart watch until after reports claimed that Apple was working on something called an iWatch.

It is possible the 12-inch tablet reports are simply rumors following rumors. With sales of large-scale tablets falling below expectations, device manufacturers may be afraid to release a bigger device.

During the first half of the year, Samsung shipped 17 million tablets (according to DigiTimes' sources, at least). More than half of those units (approximately 70 percent) were of the seven-inch variety.

Samsung's seven-inch tablets -- which are not only smaller but are also a couple hundred dollars cheaper than larger tablets -- are being credited with the sales decline for 10-inch devices.

However, Samsung has been selling 10-inch and seven-inch tablets for a couple of years. Up until Apple released the iPad Mini, full-size tablets reigned supreme in the global marketplace. This was especially true in North America, where consumers often preferred the large-scale format.

If the sales decline only occurred this year as the report indicates, then it stands to reason that the iPad Mini has had a greater impact than Samsung's own seven-inch tablets.

The $199 Kindle Fire HD -- released in September 2012 -- may have also played a role in the shift to smaller tablets. But again, Amazon (NASDAQ: AMZN) has been producing small and inexpensive tablets for nearly two years. Apple has only been in that market since October 2012.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

Posted-In: Amazon Apple Digitimes iPad iPad MiniNews Rumors Tech Best of Benzinga


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