Samsung Elec to face off with Apple after iPhone 15 launch in Sept.

2023. 8. 31. 12:42
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Apple Inc.’s iPhone 14 series. [Photo by Lee Chung-woo]
South Korea’s Samsung Electronics Co. is expected to compete with Apple Inc. in the premium smartphone segment once the U.S. tech giant launches its latest iPhone 15 on September 12.

On Wednesday, Apple unveiled an invitation, titled, “Dream. Achieve” and said it will hold a special event on September 12, local time. The company did not specify the purpose of the event but observers note that it will launch new products, including iPhone 15 given that the company usually announces new products during this time of the season.

Competition is expected to be enhanced in the local premium smartphone market, in the meantime, once Apple releases its latest device in Korea. The iPhone 15 will compete with Samsung Electronics’ Galaxy Z series.

Currently, Samsung Electronics holds the top spot in the global smartphone market when including entry-level smartphones but the iPhone is dominant in the premium smartphone market.

According to market research firm Canalys, Apple accounted for 59 percent of the smartphone market in North America in the first quarter while Samsung Electronics 23 percent.

A report by market research firm Omdia showed that the iPhone took the top four spots in global smartphone sales in the first half of this year. While Samsung Electronics products took the fifth to ninth positions, except for the Galaxy S23 Ultra, all were mid-range products from the Galaxy A series.

Samsung Electronics’ latest Galaxy Z series, however, has gained global popularity, setting the stage for enhanced competition between bar-type premium phones and foldable smartphones.

Currently, the Galaxy Z series is expanding its presence in the domestic premium smartphone market. The Galaxy Z Flip 5 and Fold 5, which were unveiled last month, achieved a record-breaking 1.02 million pre-orders in just one week.

Pre-sales have also exceeded the previous models in major countries including Europe, Central and South America, and Southeast Asia.

Samsung Electronics, in particular, dominates the foldable market, which continues to grow. There are expectations that Samsung will be able to catch up with the iPhone in the premium phone market.

In terms of pricing, the Galaxy Z Flip 5 is priced at 1.39 million ($1,052), which is about 150,000 won more than the iPhone 14’s 1.25 million won. Industry insiders expect that the price of the iPhone 15 will increase by as much as $200 (about 260,000 won).

The iPhone 15 is expected to weigh about 20 grams less than its predecessor, the iPhone 14, and come in two new colors, dark red and green.

In addition, the existing silent mode switch will be replaced by an action button, which the industry believes will be used not only to toggle silent mode as before but also for other functions such as launching the camera.

One of the biggest features of the new iPhone is the change of the charging port from the traditional Lightning port to USB-C. This change is in response to the European Union (EU)’s passing of a law requiring all mobile phones to adopt the USB-C charging port standard by 2024.

Meanwhile, according to a survey in July by Gallup Korea, 69 percent of Korean smartphone users are Galaxy users, triple the 23 percent of iPhone users.

Samsung Electronics’ advantage in the domestic market lies in Samsung Pay, a simple payment feature tailored for the local market. Unlike Apple Pay, Samsung Pay is equipped with a magnetic secure transmission (MST) feature, allowing users to make credit card payments without a dedicated payment terminal. Moreover, it supports transportation card functions through collaboration with domestic companies like Tmoney Co. and Cashbee.

For this reason, the domestic industry is keeping a close eye on whether Apple will announce support for transportation cards as well.

Recently, a code named “tmoney” was found in the iPhone’s new operating system, iOS 17, prompting speculations that Apple will support T-money, a domestic transportation card service.

Apple launched Apple Pay in Korea earlier this year, but it does not support transportation cards used for public transportation. Apple already supports local transportation cards in the U.S. and Japan, where Apple Pay was launched earlier.

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