After the enormous success of the Galaxy S3, Samsung (NASDAQOTH: SSNLF) is ready to take another shot at Apple Inc. (NASDAQ:AAPL) on its home turf by launching the new Galaxy S4. This is the first time ever Samsung is launching a flagship product first in the U.S. This clearly suggests Samsung’s growing interest in targeting the high-end, premium market in the smart phone space.
Nonetheless, after the success of the Galaxy S3, Samsung is sticking to the basics by not making any radical changes to the new device. Instead the changes are incremental, thus the phone looks fairly similar to Galaxy S3. The changes primarily exist in the battery and the processor that enhance the entire experience, however, the physical appearance remains the same.
Breaking new ground
Samsung’s strategy to deluge the market has been extremely successful so far. During the first quarter of 2012, Samsung gained massive lead on a global scale in the smart phone space. Relative to Apple Inc. (NASDAQ:AAPL), which possesses a 19% market share, Samsung has a staggering 30% market share globally.
Samsung’s lead in the smartphone space is driven largely by a huge number of cheap Android-based phones launched in emerging markets. However, Samsung’s success in the low end was expected, considering the size and the reach of the South Korean giant.
What was relatively new and unexpected is the challenge posed to Apple in the high-end segment of smart phones. The Galaxy S3 saw phenomenal success last year, as it sold as many units as Apple’s iPhone 5 or 4S collectively in the final two quarters of 2012.
Furthermore, it is imperative to emphasize that Galaxy series is only a third generation product, relative to Apple’s iPhone 5 which is the so called fifth generation “marvel”. The success of the Galaxy S3 only indicates the globally growing demand for Samsung, and its arrival in the high-end segment of smartphones.
The fallen player
Other than Apple Inc. (NASDAQ:AAPL), Samsung also competes with Research In Motion Ltd (NASDAQ:BBRY) in the high-end smart phone space. The smartphone space seems to be getting interesting by the day, with Samsung’s arrival and BlackBerry’s revival.
It is well known that the smartphone space was once dominated by BlackBerry. Recently, BlackBerry launched the all new Research In Motion Ltd (NASDAQ:BBRY) 10 in the U.S., which is largely considered to be the most attractive smartphone market in the world.
BlackBerry had lost considerable ground to Apple and Samsung due to negative company perception and lack of innovation. However, with the launch of BlackBerry 10 it will hope to regain some of its lost pride, and re-establish itself in the biggest smartphone market. Going forward, the success or failure of BlackBerry 10 in the U.S. may determine the stock’s direction. Success in the U.S. usually transcends into other international markets, as it confirms consumer confidence.
