Apple Inc. (NASDAQ:AAPL) is expecting a lot from this fall’s iPhone 8. The 10th anniversary iPhone is going to feature an all-new, premium design that is expected to kick off a massive upgrade wave. There’s one big problem with Apple’s plans, and it’s threatening to spoil the party: Samsung Electronic (OTCMKTS:SSNLF).
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iPhone 8 Design is Looking More Locked Down
While nothing is written in stone yet and we’re working on best guesses based on hints and leaks from Apple’s supply chain, there’s growing confidence we have a good idea of what the iPhone 8 will look like.
Bloomberg just published a comprehensive overview of the iPhone 8, listing the generally accepted details of AAPL’s design. Chief among these is a virtually bezel-free front that will appear to be all-screen. Ditching the Home button and stretching the new OLED display to the gently curved sides will let Apple fit a screen nearly the size of the iPhone 7 Plus into a smartphone that closer in size to the iPhone 7.
Like the iPhone 7 Plus, the new iPhone is also expected to have a dual camera system, although in the case of the iPhone 8 the two lenses may be positioned vertically instead of horizontally.
The iPhone 8 is shaping up to be a worthy upgrade for Apple fans, but one key element of this year’s expected iPhone sales spectacular is not going according to plan.
Samsung Is Beating Apple to the Punch
When it comes to premium smartphones, we’re accustomed to Apple’s design leading the way and Samsung following. It was the iPhone that forced Samsung to ditch its plastic shell and adopt a premium glass and aluminum design, and it wasn’t that long ago that AAPL sued Samsung for copying the iPhone’s design.
But when you look at the key features and design elements expected from the iPhone 8, many sound an awful lot like Samsung’s recently launched Galaxy S8.
Samsung’s new flagship sports a near bezel-free OLED display, with a virtual Home button embedded in the glass. In fact –as the iPhone 8 is expected to be– the Galaxy S8 is an all-glass design (front and back). It features iris scanning security, which was also expected to be a big feature on the iPhone 8.
When the iPhone 8 finally arrives in September, there’s a good chance it’s going to look a lot like the Galaxy S8 and Samsung will have stolen much of Apple’s thunder.
And Samsung Is Proving Tougher Than Expected
No one expected Samsung to roll over after the Galaxy Note 7 disaster. But there was a sense that 2017 would be a “licking its wounds” kind of year, giving Apple a chance to hit hard with the iPhone 8 and win over some Android converts on top of the expected iPhone upgraders.
Instead, Samsung has come out roaring. Starting the year with a very public event committing to battery safety, SSNLF has now re-taken the lead from AAPL in terms of global smartphone sales.
The Galaxy S8 offers many of the expected iPhone 8 design cues and features and goes for $750, while Apple’s flagship is expected to be priced at $1,000 or more. Worse, Samsung is throwing in a pair of high-performance $99 earbuds that are vastly superior to AAPL’s pack-ins and including a free Gear VR headset and controller with pre-orders.
Further clouds on the horizon include a Galaxy Note 8 that’s rumored to include a dual camera system like the iPhone 7 Plus and iPhone 8, but with 3x optical zoom.
Samsung’s apparent recovery and determination to regain lost ground doesn’t mean the iPhone 8 isn’t going to be a success. It does mean the pressure is on AAPL to get the details of its new iPhone right.
And it also means that for many consumers, the iPhone 8 may remind them of something Samsung’s already done rather than looking revolutionary.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.