*from www.bloomberg.com, Mar. 13, 2013 (To view original article click here.)
Take Away #1: Samsung is making its biggest run yet at the iPhone’s U.S. loyalists, unveiling the new Galaxy S4 a few blocks away from Apple Inc.’s flagship store in New York.
Key Facts and Figures:
- The debut of Samsung’s marquee smartphone at Radio City Music Hall tomorrow night brings the fight directly to Apple’s strongest market.
- Samsung is relying on an advertising blitz and cutting-edge features to generate the kind of buzz associated with Apple products.
- This is the first time Samsung has launched the Galaxy S phone in the U.S.
Take Away #2: Samsung’s challenge is proving it can innovate as effectively as Apple.
Key Facts and Figures:
- Apple’s iPhone pioneered the market for touch screen phones in 2007.
- Samsung became the worldwide leader in smartphones more than a year ago, according to IDC.
- Apple remains No. 1 in the U.S.
Take Away #3: Samsung’s new Galaxy S is expected to have a number of upgrades from its previous version including a sharper camera.
Key Facts and Figures:
- The phone will sport a 5-inch screen, slightly larger than the S3.
- The U.S. version will use Qualcomm Inc.’s quad-core chip, giving the phone more processing power to handle multiple tasks at the same time.
- In other markets, it will rely on Samsung’s “octacore” eight-core chip.
- The phone which runs on Google Inc.’s Android software, will also have a higher-density, 13 megapixel camera, up from 8 megapixels in the S3.
- The upgrade would put the new Galaxy S4 well ahead of Apple’s iPhone 5, which has a dual-core processor, a 4-inch screen and an 8-megapixel camera.
Take Away #4: The timing of the S4’s arrival could spell trouble for Apple, which probably won’t have a new phone out until mid-year at the earliest.
Key Facts and Figures:
- Apple’s sales growth last quarter was the slowest in more than two-years, a sign the iPhone is losing its edge over other smartphones.
- The next Apple phone, expected to be called the iPhone 5S, will be out in the late second quarter or early third quarter.
Take Away #5: Mounting competition puts pressure on Apple to step up its pace of product releases.
Key Facts and Figures:
- Since iPhone’s initial debut about six years ago, the company has held one big phone unveiling each year.
- There’s a drumbeat of rumors about Apple working on more than one version of the iPhone, says Jan Dawson of Ovum.
Take Away #6: Samsung faces it own challenges as well, selling the new S4 into a global market already approaching saturation.
Key Facts and Figures:
- Samsung will be selling its new Galaxy S4 into a $358 billion global market.
- Growth is projected to slow to 9.8% in 2017 from 27% this year, according to data compiled by Bloomberg.
- In addition to contending with the iPhone, Samsung must fend off Chinese rivals offering handsets for $100.
- The current Samsung Galaxy S3 sells for about $200 in the U.S. with a two-year contract.
Take Away #7: The crowded market has prompted Samsung to add more “gee-whiz” features, rather than just improving basic specifications.
Key Facts and Figures:
- Last year’s Samsung S3 added a function that lets users exchange information by bumping their phones together.
- This year, speculation has centered on eye-scrolling technology, which would track eye movements to let users scroll through articles based on where they’re looking on the screen.
- People familiar with the device however, disputed that idea this week saying that eye scrolling won’t be in the S4 but may appear in future versions.
- There will be more simplified uses of eye-tracking technology, such as the ability to pause videos when the user’s eyes move away from the screen, the people said.
Take Away #8: Samsung offers a range of phone products while Apple relies on just the iPhone.
Key Facts and Figures:
- Samsung’s line up includes cheaper models with basic features.
- Samsung also has the Galaxy Note, a cross between a phone and a tablet that lets people write on the screen.
- While Apple released a smaller iPad tablet last year, it doesn’t have a direct competitor to the Note, which is sometimes called a “phablet”.
Take Away #9: Samsung looks to be outpacing Apple.
Key Facts and Figures:
- In all, Samsung sells about a quarter of all mobile phones globally, according to research firm Strategy Analytics.
- Samsung shipped 213 million smartphones in 2012, compared with 135.8 million for Apple and 35 million for Nokia Oyj. (NOK1V).
- Samsung boosted fourth-quarter profit by 76% to 7.04 trillion won ($6.4 billion) as its mobile phone unit more than doubled operating profit.
- In the same period, Apple reported profit that was little changed from a year earlier.
- Samsung’s stock has outperformed Apple shares as well, especially in the past year.
- Samsung has gained 25% in the trailing 12 months, compared with a 22% decline for Apple.
- The S&P 500 information technology index has gained less than 1% during the period.
Take Away #10: Samsung’s mobile phones expected to continue driving the company’s earnings.
Key Facts and Figures:
- Investors are buying Samsung’s shares at a 3% price-to-earnings premium over Apple.
- For the past five years, Apple was the one with the premium.
- Samsung is counting on mobile phones to continue driving earnings, especially as it contends with falling prices in its TV business and a stronger Korean currency.
- The S4 will be a catalyst for Samsung’s share price, predicts analyst JJ Park of JPMorgan Chase & Co. and says the company is likely to ship 70 million to 80 million units by the end of the year.
*To view original article from www.bloomberg.com click here.