With The Galaxy S3, The Samsung/Apple Fight Will Enable Smarter Product Experiences

After months of rumors and a good marketing orchestration, Samsung has just unveiled its new flagship device, the Samsung Galaxy S3. Samsung will first launch the HSPA+ device in Europe at the end of May to benefit from the current weaknesses of its competitors — in particular, Nokia. It will release in the US in an LTE version later this summer. The aim is clear: to take the lead from Apple’s iPhone in the high-end smartphone segment and do even better than the Galaxy S2, which sold more than 20 million units.

Samsung is positioning a wide range of products in all segments and in multiple consumer electronic categories, leveraging its scale and scope and its vertically integrated approach (screens, processors, storage components, etc.). Despite the growing dependence on the Android OS, Samsung does not have all its eggs in the same OS basket. However, it clearly needs to catch up in the software and services space. That’s the reason I continue to believe that, in the premium segment, Apple is still in the best position to offer a seamlessly integrated experience across devices. Samsung’s cloud component is still missing, and it will need to continue its efforts to close the gap with Apple.

On the contrary, Apple — still one of Samsung’s largest clients (chipsets and screens) — has few models and higher margins and is in a position to leverage a different ecosystem around its OS, apps, and iCloud models. Thanks to the phenomenal success of the iPad, the Apple brand is reinventing itself and expanding into hardware categories that represent new growth drivers from which Samsung is not yet able to benefit.

Beyond the Samsung/Apple high-end leadership war, the great news is that these new smartphones will increasingly enable consumer-facing brands to launch innovative new product experiences. Some of the new services introduced by the Galaxy S III highlight this phenomenon:

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