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Samsung (NASDAQOTH: SSNLF) recently released its latest Galaxy S10-series smartphones to what appears to be critical success. Android Central calls this "an easy buy for just about everyone" and CNET predicts that the biggest Galaxy S10 Plus "will be one of the best phones of the year".
Apparently, Samsung's hard work on this latest family of devices should pay off.
Source of the image: Samsung.
The TF International Securities analyst Ming-Chi Kuo recently said that "the demand for pre-orders for the S10 series is better than expected", which seems to have increased between 30% and 40% compared to the number of recorded preorders. for the previous generation Galaxy S9. smartphone series. To this end, Kuo increases its expectations for 2019 shipments for the device, ranging from 30 million to 35 million euros, to a new band of 40 to 45 million euros.
His explanation for the apparent success of these phones? According to Kuo, these devices offer "a differentiation of specifications for iPhone models, including an ultrasonic fingerprint on screen (FOD), a triple rear camera and a bilateral wireless charging." This is why it does not bode well for rival Apple (NASDAQ: AAPL).
It's a sharing fight
Many industry observers believe that the premium segment of the smartphone market is down. If this dynamic were to materialize in 2019, Apple could not only have to manage a global loss of market share due to local suppliers such as Huawei in China, but also market share in markets as large as the United States. United, at least until Apple launches. a new series of products next September.
Indeed, while Apple dominates the share of smartphones in the United States, with a quarterly market share ranging from 37% to 47% in 2018, Samsung is a second strong supplier and sees its quarterly share rebound between 22% and 26% last year.
While the respective market shares of Apple and Samsung tend to peak after the launch of a new product, Galaxy S10 series devices could potentially lead to noticeable increases in peaks and troughs quarterly unit share of the company in the United States. States. These increases could be borne by Apple.
A silver lining for Apple
As Kuo explained, the bad news for Apple is that the new Galaxy S10 smartphones, and in particular the standard Galaxy S10 and the larger Galaxy S10 +, have many advantages over the current generation of smartphones. ; iPhones. The good news, however, is that, according to a previous Kuo report, there are plans to address many of these issues with the upcoming iPhone lineup.
Apple would apparently introduce features such as the triple rear camera, two-way wireless charging, and improved Face ID configuration. The form factors of the devices will remain unchanged, unlike what Samsung has delivered with the devices of the Galaxy S10 series. The relationship between the screen and the body of Samsung devices has increased from generation to generation, which may explain why the S10 series works relatively well in shape-sensitive regions, such as China.
Take away food
It seems that Samsung is offering a wide range of devices with the Galaxy S10 series of devices, and the relative strength of these offerings compared to Apple's current lineup could result in a larger stock loss than usual. Apple's share in the next quarter. two. Of course, Apple will have the opportunity to respond with a new iPhone harvest in about six months.
In the longer term, if Apple wants to keep up with annual product launches, its devices will need to be equipped with features and capabilities that are advanced enough to withstand the increased competitive pressure that usually comes about six months ago. after their debut.
Ashraf Eassa does not hold any of the shares mentioned. The Motley Fool owns shares and recommends Apple. The Motley Fool offers the following options: Long Calls from $ 150 to January 2020 for Apple and short calls from $ 155 to January 2020 on Apple. Motley Fool has a disclosure policy.
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