Daily Management Review

Samsung’s Early Release Strategy for Galaxy S7 Aimed to Gain Head Start Over iPhone


12/28/2015




Samsung’s Early Release Strategy for Galaxy S7 Aimed to Gain Head Start Over iPhone
The early release of the Samsung’s Galaxy S7 is being viewed as a strategic move by the company to try and gain lost market share with the latest model of the company hitting the shelves months ahead of a possible new Apple phone.
 
The new Galaxy S7 is expected to be launched in early 2016 while Apple’s expected new model could hit stands in the latter half of the year. Samsung generally releases its top model for the year around April as it did in 2015 when the company announced the Galaxy S6 in March and it went on sale in April. This also means that the Galaxy S6 and S6 Edge had just a 10 month lifecycle.
 
Experts predict that the Galaxy S7 would be under a huge amount of pressure to perform as the flagship smartphone for Samsung. In addiiotn to reviving the flagging fortunes of Samsung’s mobile department, the new phone would also have to convince the markets that a Samsung flagship is a worthy choice as the ‘top’ Android phone.
 
It is here that experts view the early release as a smart strategic move by the company. They say that it is actually fits in with growing rumors that Samsung wants a bigger head start on new iPhone generations.
 
This strategy had already been implemented by Samsung with the Galaxy Note 5. In 2015, the Galaxy Note 5 replaced the Galaxy Note 4 after just 10 months and was launched in August of 2015.
 
The Samsung phablet got a one month head start on the iPhone 6S Plus while the Galaxy Note 4 launched a month after the iPhone 6 Plus.
 
As a tradition, announcements for new phones is made by Samsung just before the annual Mobile World Congress event in Barcelona as a tradition while the models go on sale in April after a build-up in the press during March.
 
This year however the natural window for the announcement would start on Friday February 19th as the Mobile World Congress this year is February 22nd to 25th.
 
In a similar manner, the Galaxy S7 would have a seven month head start over the expected September release of the iPhone 7 if the Galaxy S7 is launched in February of 2016. The head start would be further augmented by the launch of three different designs of Galaxy S7 in 2016.
 
Experts point out that it would not be before Q2 2016 that the impact of the Galaxy S7 will be visible. This period would be at least six months away from the February release.
 
Till that time, the revenue for the company would have to be judged by the revenue generated from the Galaxy S6 family that has not had an easy life.

A number of problems including production issues on the S6 Edge have resulted in the sale of the series to the degree as the company had expected.
 
However experts also have sounded a word of caution for Samsung’s Galaxy S7. There is expected to be a huge rush of consumer electronics news that comes out of CES between January 6th to January 9th and any announcements by of Galaxy S7 could run t he risk of being lost in the humdrum.
 
(Source:www.forbes.com) 






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