Back to top

Analyst Blog

Samsung Electronics Co. – the world’s largest handset maker has unveiled a smaller version of its flagship Galaxy SIII smartphones, which has received huge success worldwide. The latest galaxy range of smartphones is expected to bring stiff competition for Apple Inc.’s (AAPL - Analyst Report) iPhone 5. However, the price and launch date are yet to be declared by the company.

Samsung SIII Mini is powered by a dual-core 1 GHz processor along with 8/16 GB internal storage options and possesses a 5MP camera instead of an 8MP camera in its bigger siblings. The most notable feature of the phone is that it has a smaller 4-inch super AMOLED screen instead of a 4.8 inch screen of its predecessor and runs on Google Inc.’s latest Android offering Jelly Bean.

On September 12, this year, Apple, the second largest smartphone manufacturer in the world, launched iPhone 5 with a 4-inch screen instead of a 3.5 inch screen in its bigger version. Reducing its screen size is a strategic decision by Samsung to make it a much more handy set thereby putting it in direct competition with Apple’s latest offering as these two are the biggest smartphone players in the U.S.

According to research firm IDC at the end of the second quarter of 2012, Samsung shipped 50.2 million smartphones and has a market share of 32.6% as compared to Apple’s 26 million shipments with a market share of 16.9%. Nokia Corporation (NOK - Analyst Report), which is facing market share slide due to increased completion from iPhone and other Android-based smartphone manufacturers, comes at a distant third position with a market share of 6.6%.

This is the first real attempt by the South Korean giant to compete with Apple’s iPhone 5 after its much-hyped launch. We believe that Samsung which has recently lost a crucial patent battle to Apple could price the SIII Mini attractively it could really put the tech giant into some discomfort. However, unlike iPhone 5, SIII Mini doesn’t support LTE, which could be a major downside for the phone as the data hungry customers nowadays expect fastest network on premium smartphones.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%