If any investors are looking for solid proof that the $358 billion global smartphone market is approaching saturation, here it is: Samsung’s (SSNLF.PK) Galaxy S4, unveiled in New York City on Thursday, came with software that can track eye movements and allow users to accept a call or scroll through a Web page with the wave of a hand, and critics were not overly impressed.
“If you’re looking for Samsung’s new Galaxy S4 to define a novel new era of smartphone greatness, it’s time to temper your expectations,” wrote CNET. “Very few of the extensive list of enhancements stood out as a killer, must-have, cannot-possibly- live-without feature.”
Clearly, it’s tough to create a successful smartphone these days…
The Galaxy S4 is the first of three Samsung handsets that will be released this year with the aim of taking Apple’s (NASDAQ:AAPL) smartphone success down a notch. But early reviews indicate that Samsung’s latest shot at the iPhone was merely a glancing blow in the ongoing barrage of competitive devices released by both companies, each attempting to gain a secure position at the top of the global smartphone standings.
Smartphone rankings reflect this ongoing scuffle for positioning; Samsung’s Galaxy S3 sold fewer units than Apple’s iPhone 5 in the fourth quarter of last year, but Samsung became the largest smartphone manufacturer last year; shipping 29 percent of all smartphones globally, compared to Apple’s 21 percent. Also, handsets powered by Google’s (NASDAQ:GOOG) Android operating system — like both the Galaxy S3 and the Galaxy S4 — outsold iOS-powered devices.
Samsung’s new handset is lighter than its predecessor, and it has eye-tracking software, a display 1-inch larger than the iPhone 5’s 4-inch screen, a dual-facing camera, and the ability to translate commands into different languages — the company’s attempt to lure customers from emerging markets. But analysts see these specifications, most of which were leaked days in advance of the launch, as only gimmicky features; in their estimation, Samsung did not hit upon any new elements that will revolutionize the market…
“There was no ‘Wow’ factor, it only proved to the world that it’s getting harder to make a difference on the hardware side,” Dongbu Securities analyst Kwon Sung Ryul told Bloomberg. “But the number of carriers that will offer Galaxy S4 has increased from that of S3, so the overall sales are expected to improve.”
Even though the current buzz contains a modicum of disappointment, the new Galaxy is expected to sell well. Tong Yang Securities — based in Seoul, South Korea — expects Samsung to sell at least 60 million Galaxy S4 devices this year. The problem for Samsung, is that analysts had been expecting — or at least hoping for — a device that would turn the market upside down. “The Galaxy S4 may not offer the dramatic leaps we’ve come to expect from each new generation of Samsung smartphone,” Consumer Reports’ Mike Gikas told Bloomberg. “It does, however, cram a remarkable number of tech-forward features into a relatively svelte package.”
The Galaxy will go on sale in the United States on April 26 with all major wireless carriers, including AT&T (NYSE:T), Verizon (NYSE:VZ), and MetroPCS (NYSE:PCS). Part of the device’s expected success is attributed to the fact that it will be carried by a wide range of wireless providers worldwide as well, such as Deutsche Telekom (DTEGY.PK) and Vodafone (NASDAQ:VOD).
Don’t Miss: Will the Galaxy S 4 Take a Bite Out of Apple?