Galaxy to challenge iPhone X sooner than expected
▶ Samsung and Chinese makers Xiaomi and Huawei are all set to up competition with Apple
Samsung Electronics is said to be planning to debut its next flagship smartphone in February, presenting Apple’s iPhone X with a sooner-than-expected challenger.
The South Korea technology company plans to introduce the new models, the Galaxy S9 and Galaxy S9 Plus, as early as late February and release the devices as early as March. That schedule would be a month earlier than for the current Galaxy S8 and Galaxy S8 Plus.
The new phones will be similar to the current Galaxy models, but include upgraded camera systems, said the people, who asked not to be identified. The debut will be Samsung’s company’s first major phone introduction since the Note 8 was released in September.
The Galaxy S8 line was introduced this past March. The release plans for the new models are still fluid and could change.
Samsung declined to comment.
The launch will be a significant one for Samsung, potentially serving as a way for the phone maker to continue strong global momentum despite the appeal of the new top-of-the-line iPhone X and a forecast of a dip in market share. Samsung’s new models will present Apple with formidable rivals only months into the iPhone X’s life cycle.
Despite its US$999 starting price, the latest iPhone has generated positive reviews and analysts project holiday sales will help Apple produce its first quarter with more than $80 billion in revenue.
In the third quarter, before the iPhone X went on sale, Samsung dominated global smartphone shipments with more than 22 per cent of the market, according to data from IDC.
Apple was second with 13 per cent. Strategy Analytics has forecast Samsung’s global market share will fall to less than 20 per cent in 2018.
Samsung is also working on a smart speaker with an audio and home management focus to be released in the first half of next year, it was reported last week.
Samsung is not Apple’s only threat. China’s top smartphone makers are ready to challenge the US firm on its home turf after trouncing the iPhone maker in their own market.
Huawei Technologies and Xiaomi are in talks with US wireless operators about selling flagship smartphones to American consumers as soon as next year. The handset makers are negotiating with carriers including AT&T and Verizon Communications, said the people.
Apple has a lot at stake in the United States, where it is the leading smartphone maker. In years past, it has been insulated from competition by strong support from carriers, which used to subsidise its expensive iPhones and lowered the upfront price for customers. These subsidies or discounts have gone away, as carriers moved to phone financing that spreads costs over two years.
Huawei has already tried selling its flagship Mate 9 phone in the US via websites such as Amazon, but working directly with wireless partners would give China’s number 1 phone maker a wider presence across the US through retail stores, carrier websites and TV commercials.
Huawei is in talks to sell a flagship line via US carriers, but the Chinese company also plans to sell the Mate 10 device through e-commerce channels, the people said.
Xiaomi executive Wang Xiang said the firm aims to roll out phones in the US within two years, but noted the process of working through specifications with each carrier is time consuming.
Xiaomi is also weighing opening retail stores in the US to build its brand and sell its fitness trackers, thermostats and vacuum cleaners before a phone launch, he said.
Those products are already sold online in the US Verizon, AT&T and Huawei declined to comment.
The Chinese handset makers are targeting the US market at an opportune time.
US carriers are cutting subsidies so consumers increasingly pay full price, in some cases more than $1,000, for high-end phones. Chinese rivals often sell phones far cheaper. Huawei’s Mate 9 was on sale on Amazonfor $400 last week.
The US phone market is dominated by Apple and Samsung. Since most phones are purchased through carriers, it’s nearly impossible for a manufacturer to gain serious market share without support from AT&T or Verizon, the two largest US wireless networks.
Apple considers China one of its most important markets, yet sales have fallen there in recent years. Apple shipped 8.8 million iPhones in the third quarter in China, ranking behind Huawei, Oppo, Vivo, and Xiaomi, IDC estimated last month. That gives Apple just under 8 per cent of the Chinese smartphone market, compared with just over 33 per cent for Huawei and Xiaomi combined, according to IDC’s report.
In years past, Apple has been insulated from competition by strong support from carriers, which lowered upfront prices for customers