The new device is in essence a scaled-up version of Samsung’s Galaxy S smartphone (as the iPad is to the iPhone/iPod Touch), featuring a seven-inch TFT display. It is perhaps the most credible Android alternative to the iPad launched so far – although an honorable mention must go to the smaller Dell Streak.

Samsung’s credentials as the creator of an iPad alternative are strong. Along with HTC and Motorola, Samsung has in recent times been among the most successful vendors in taking on Apple in the smartphone desirability stakes; imitating Apple both in leaning towards the quality end of the market in terms of hardware and materials and, in terms of the overall user experience.

Samsung’s President and Head of Mobile Communications Business JK Shin says, “Samsung recognises the tremendous growth potential in this newly created market and we believe that the Samsung Galaxy Tab brings a unique and open proposition to the market. There is a new and emerging consumer demand that Samsung can satisfy since mobile is in our DNA. This demand continues to grow and develop as users tap into its limitless potential.”

The Galaxy Tab has added typical Samsung bells and whistles such as support for DivX/XviD, Ogg, and FLAC media formats, this should therefore provide the basis of a tablet that should be able to compete with the iPad on similar terms.

The Samsung Galaxy Tab features 3G HSPA connectivity, 802.11n Wi-Fi and Bluetooth 3.0. Video conferencing and push email on the large 7-inch display make communication more smooth and efficient. For voice telephony, the Samsung Galaxy Tab turns out to be a speakerphone on the desk, or a mobile phone on the move via Bluetooth headset.

Powered by a Cortex A8 1.0GHz application processor, the Samsung Galaxy Tab is designed to deliver high performance whenever and wherever you are.

The front-facing camera allows face-to-face video telephony over 3G, the rear-facing camera captures still images and video that you can edit, upload and share, all without any hassle.

With its little brother the Galaxy S smartphone already selling well (over 1 million units to date) and with demand for the iPad running high it is reasonable to expect the scaled-up version to also ship in significant volume.

Market demand for tablets is still far from clear

How well the Galaxy Tab sells will tell us a great deal about the likely future development of the embryonic tablet market. Many questions remain.

For instance, can Android tablets (or other OS tablets such as the heavily rumored “BlackPad” from RIM) help build a bigger market for tablets and/or take market share from Apple as they jointly begin to erode the market for PCs and netbooks as part of a revolution in personal computing? Will high-end versions compete effectively with the iPad or will the presumed mass market be content with low-cost Android tablets? Has the iPad already corralled the market for a device category that lacks a clear purchasing motivation, except for dedicated Apple aficionados?

Answers to these questions will only really start to be answered later in the year, by which time the Galaxy Tab, Dell Streak and the iPad will have been joined by an array of variations on the tablet theme, by multiple vendors, and right across the price spectrum.

Reasonable forecast scenarios are now possible

With design and manufacturing of these devices well progressed and vendor commitment becoming clear, it is now possible to make some educated guesses as to the market shape ahead. For instance, in the initial phase we now expect considerable substitution of netbooks for tablets, but not much impact on the market for dedicated e-readers such as Amazon’s Kindle-at least not in the near term.

These scenarios and insights will be formalised in a new forecast Ovum is developing around such devices for publication during 4Q10. In the meantime, devices such as Samsung’s Galaxy Tab are providing the perfect test for the tablet market’s prospects.