Last year, Samsung released the Galaxy S9. The latest version of its flagship smartphone seemed like a minor update of the previous version, and sales were disappointing. If anything, the smartphone landscape in 2019 is even tougher. Declining sales are the norm across the industry with even Apple (NASDAQ:AAPL) struggling to move iPhones, and Chinese competitors are now making waves internationally with their premium models. China’s Huawei even eclipsed Apple as the world’s second-largest smartphone manufacturer, and it has its sights set on Samsung. It’s not an understatement to say the Galaxy S10 has a lot riding on it.
After yesterday’s Unpacked 2019 reveal, does the Galaxy S10 look to have what it takes? Will this be the smartphone that boosts sales over the Galaxy S9, keeps Samsung on top and challenges Apple’s iPhone as the must-have status flagship?
So Many Galaxy S10 Models…
Before getting into this too deeply, Samsung’s multiple model strategy needs to be addressed. The company announced its new smartphone and a plus-sized version, as normal. But it also announced a smaller and lower cost version — the Galaxy S10E — and a super-sized version with 5G support, the Galaxy S10 5G. In addition, there was also the Galaxy Fold, the $1,980+ folding smartphone.
Our focus is going to be on the Galaxy S10 and S10+ as they are Samsung’s mainstream flagship smartphones and the models that are expected to sell in volume.
Galaxy S10 Key Specs:
- 6.1-inch curved Quad HD+ AMOLED Infinity-O display (6.4-inches on Galaxy S10+)
- Octa-core Qualcomm (NASDAQ:QCOM) Snapdragon 855 processor
- 8GB RAM standard
- 128GB storage standard, MicroSD slot expandable
- Three rear-facing cameras (16MP ultra wide angle, 12MP wide angle, 12MP telephoto)
- 10MP front facing selfie camera (Galaxy S10+ has second, 8MP front-facing camera)
- In-screen ultrasonic fingerprint reader
- Battery 3,400mAh for Galaxy S10 and 4,100mAh for Galaxy S10+
- Supports Fast Wireless Charging 2.0, supports Wireless PowerShare
- Wi-Fi 6, LTE Cat.20, Bluetooth 5.0
- IP68 water resistance
- USB-C, headphone jack
- AKG-tuned stereo speakers
- 0.31-inches thick, Galaxy S10 weighs 5.53 ounces, Galaxy S10+ weighs 6.17 ounces
- Runs Android 9.0 Pie
- MSRP $899 and $999 respectively
The Galaxy S10+ is also available with an optional ceramic back and increased RAM/storage options up to 12GB of RAM with 1TB of storage.
Compared to the iPhone XS?
Samsung has done a good job of making its new flagship a compelling upgrade over the Galaxy S9. But how does it compare to the iPhone XS?
Samsung has some big wins compared to the iPhone competition. Its new AMOLED Infinity-O displays are brighter than the iPhone’s, and the hole punch front camera design means no notch and even less bezel. Rather than try to duplicate Apple’s FaceID security, which would have meant additional camera hardware in the front, Samsung has embedded an ultrasonic fingerprint sensor under the display.
Samsung has also escalated the multiple camera race. Instead of the two rear camera setup of the iPhone XS, the Galaxy S10 series sports three cameras: normal wide angle, telephoto and ultra wide angle. It’s also equipped with Instagram-friendly, higher resolution selfie cams, and the Galaxy S10+ has a second selfie cam. Those cameras are AI-assisted, to ensure better shots as well.
The Galaxy S10 series also has other advantages over the iPhone XS, including more standard storage (128GB versus 64 GB), the ability to expand storage inexpensively with a Micro SD card, support for Wi-Fi 6 and the ability to charge accessories using the back of the phone like a wireless charge pad. Samsung also kept the headphone jack — a feature Apple ditched several years ago.
While Samsung hiked its prices compared to last year, the Galaxy 10 series holds a price advantage over the iPhone XS series. Starting prices are $899 and $999 compared to the $999 and $1,099 that Apple charges.
In short, for someone buying a new flagship smartphone with no platform allegiance, the Galaxy S10 has a definite edge over the iPhone XS. The reality is that iPhone users are unlikely to switch since that means moving to Android.
And the Chinese Competition?
The Galaxy S10 has the specs and design to leave the current crop of Android smartphones sold in the U.S. behind, including Alphabet’s (NASDAQ:GOOG, NASAQ:GOOGL) Google Pixel 2. But what about the Chinese competition?
Compared to something like Huawei’s P30 Pro, which is due to be officially announced in March, Samsung is probably going to achieve parity at best, in terms of specs. And the expectation is that the Chinese flagships will continue to undercut Samsung on price. For example, Xiaomi’s new Mi 9 triple camera smartphone (which has the same Snapdragon CPU as the Galaxy S10 and an AMOLED teardrop display) is going for around $450.
Fending off the Chinese competition is going to remain an uphill battle, even with the Galaxy S10. Samsung is undoubtedly very happy that most of these smartphones are not readily available in the U.S. market.
Outlook for Galaxy S10 Sales?
Samsung has about seven months to push the Galaxy S10 over the iPhone XS before Apple responds in September with its 2019 iPhones. But Samsung is still going up against big global forces: slowing smartphone sales and fierce competition from China.
To boost the chances of success, Samsung is including a free set of its new Galaxy Buds wireless earbuds with Galaxy S10 pre-orders. That would be the equivalent of Apple giving away a free pair of AirPods with an iPhone purchase, so it’s not going to hurt. And it might even help goose sales in China, at least in the short term.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
