Apple needed a kick in the pants. Samsung has just delivered it

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While smartphone sales are stagnating mainly due to slower upgrade cycles, manufacturers need to do even more to encourage consumers to switch existing devices to newer models.

Samsung (SSNLF) Wednesday devoted most of its press event "Unpacked" to the presentation of brilliant gadgets, including the smartphone Galaxy Fold that turns into a tablet, to convince consumers that the future is bright, both for l & # 39; 39 smartphone innovation than for the company itself.

"Samsung has made Apple look bad," Ben Stratton, analyst at Canalys, told CNN Business. "Galaxy Fold is an excellent marketing tool, introducing Samsung as an innovative and forward-thinking technology, slowing the appearance of its competitors."

Samsung Galaxy S10 Series: foldable phones, 5Gs and phones that charge
At $ 1,980, the Galaxy Fold will likely be a niche product that will not give Samsung a big boost in sales. But analysts say it's a reminder that Apple has not yet brought the "wow factor".

"Just like the popular Motorola RAZR devices of the time, functional phones, we consider folding screens as a compelling form factor," Goldman analyst Rod Hall said Thursday. "We believe this presents a challenge for Apple, which could end up without access to essential flexible OLED technology for which we believe that Samsung is at least two years ahead of other competitors in terms of display. . "

In addition to the Fold, Samsung introduces the Galaxy S10 5G – the first 5G consumer phone – and updated versions of its best-selling Galaxy S smartphone, some of which feature an ultrasonic fingerprint reader built into the Screen, as well as a single display that can charge other smartphones.
Apple might not have a foldable iPhone in the pocket (though it has a patent) and its alleged iPhone 5G would have been postponed to 2020. So it will be necessary to show consumers and investors that the new iPhones are still worth buying. Apple's biggest smartphone innovations in recent years may have focused more on price than on the product. Screens have become bigger, partly because of pressure from Samsung's popular big devices, and Apple has added some features such as facial recognition, augmented reality and animated emoji. But beyond the removal of the home button in 2017, the appearance of the product itself has not changed much.
In the first quarter of 2018, Apple recorded a 15% decline in iPhone business turnover during the holiday season. At the time, CEO Tim Cook cited reasons such as currency exchange rates, a popular battery replacement program, and decreasing smartphone subsidies from operators for a decline in sales. 39; iPhone.
Samsung's new foldable smartphone: a revolutionary gadget?

"[Innovation this year] Stanton does not have to be a folding screen, but could be linked to the camera, audio or battery, "said Stanton.But he has a team phenomenal engineers with sufficient resources and there will be no excuses if the iPhone this year is iterative. "

While its core business, the iPhone, is in decline, Apple is investing more and more in more and more services, such as offering more original TV programs and launching an information service through subscription.

"Apple needs to develop a large number of iPhone users to sell services to, but it can not do it without being much more flexible when it comes to updating for iPhone," Stanton said. . "Apple is approaching a point of inflection."

It can not be denied that Samsung has sparked the enthusiasm for the future of smartphones for the first time in quite some time. Now, it is in the camp of Apple.

"Apple has the taste to stand on the shoulders of the giants who preceded them when announcing a feature, such as phablets and 4G LTE," said Ramon Llamas, director of research at IDC , market research firm. "It will eventually happen, but in his own words."

Correction: An earlier version of this article incorrectly attributed Ben Stanton's quote on the need for Apple to be flexible in pricing for the iPhone.

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