iPad Blamed for Decline in Samsung Profits

Samsung is warning that its profits for the first quarter of 2011 will be substantially lower compared to previous quarters, and analysts are blaming the drop on Apple and its popular iPad multimedia tablet.

iPad tromps Galaxy Tab!Apple’s iPad is eating the Galaxy Tab’s lunch

The company apparently wasn’t able to compete well against the iPad with its Galaxy Tab tablet device thanks to “severe price competition,” according to Dongbu Securities analyst Lee Min-hee. Samsung also had to deal with weaker prices for its liquid crystal display component sales, according to the Associated Press.

Samsung didn’t specifically target the iPad with its warning. Company spokesperson Nam Ki-yung did, however, say Samsung would offer additional details about its profit decline during its earnings report scheduled for the end of April.

Samsung isn’t the only company dealing with pressure in the tablet market thanks to Apple. The iPad was already the dominant player in the tablet market before the iPad 2 was released in March. With the second generation version of the iPad available, companies have been scrambling to match features and to cope with Apple’s agressive pricing.

Based on the demand for the iPad 2, Samsung and other tablet makers can expect to continue having trouble keeping up with Apple in the tablet market.