Apple Inc. (AAPL) vs. Samsung: Battle For the ‘Phablet’ Space

The “phablet” is unofficially defined as a hybrid smartphone-tablet device with a screen between five and seven inches wide. Earlier today, we reported that it’s possible Apple Inc. (NASDAQ:AAPL) could enter this space (see the full story here). Yesterday, Brian White of Topeka Capital Markets also discussed the prospects of a larger iPhone, mentioning: “I’m seeing this trend in Asia and I think that’s something Apple has to address.”

Should this Concern Apple Inc. (AAPL) and Google Inc (GOOG)?

On CNBC earlier today, Andrew Milroy of ICT Practice, Asia Pacific at Frost & Sullivan, was discussing the “phablet” space, and talked of the competition between Samsung and Apple Inc. (NASDAQ:AAPL). Here are some of his highlights:

“I think the strategy [of Samsung] has been very successful against Apple […] last year, Samsung launched nearly 40 new products and Apple launched just one. So they’ve got a strategy to offer smartphones to a huge variety of different market segments. They’ve also got a strategy to produce a variety of different form factors, and leading this new market are the so-called “phablets” — devices that are too small to be a tablet, too big to be a smartphone.”

On this intriguing subject, Milroy also mentioned that Samsung has “been very innovative in their approach,” compared to Apple Inc. (NASDAQ:AAPL), which he describes as “not as much differentiation in its products at all.”

Moreover, Milroy discussed if phablets can compete against fuller-sized tablets, which is a key point to consider.

What were his thoughts?

Milroy mentions that he expects “a lot of the action in 2013” to come from the phablet space, and he thinks that Samsung can take some tablet market share away from Apple Inc. (NASDAQ:AAPL). Here’s what he had to say:

“They [Samsung] really do now dominate the smart phone market, and there’s no doubt about that, at least on a global basis. I think next year we’ll see Samsung and others turn their attention to a much greater extent to the tablet market, and the so-called phablet market.”

On Samsung and Apple’s sales in specific geographical areas, Milroy mentioned the hand-held device market place in China, and had an interesting take:

“I think the whole Android approach is potentially more successful in China, on the grounds that there’s much more scope for localization, it’s much more flexible than the Apple ecosystem in many ways.”

Let us know your thoughts on these issues in the comments section below, and for more related tech coverage, continue reading here:

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Massive Differential in Smartphone Market Share Estimates

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Disclosure: I have no positions in any of the stocks mentioned above