Capitalist Review

Financial Products Reviewed

Samsung Introduces 3G Watch, Goes After Apple

September 1, 2015 by CapitalistReview Leave a Comment

Today Korean Samsung Electronics said it will introduce the Gear S2 Smartwatch later this week. The smartwatch will be shown to the public at the IFA in Berlin on Thursday. Interestingly, the new Gear S2 will come in a 3G variant, and thus would be able to operate as a stand-alone phone. This is a huge advantage compared to the rest of the market, especially compared to the Apple Watch.

Threat for Apple?

Samsung chooses for a more traditional watch design with a ‘round face’ model, as opposed to Apple’s square display. The traditional design may provide a more familiar feeling to people wearing watches. However, the question is how many people in the focus groups are wearing watches and those who do, will they see a smartwatch as an alternative? Most people who don’t wear a watch might be less interested in the round vs square discussing, though squared may provide better graphical options. Those who wear a watch, might be not interesting in replacing it by a smartwatch, since a watch is more of an exquisite accessory. Playing the slicker design card might be less important for customers.

However, the stand alone feature may be a key advantage. For example, when jogging, cycling or working out, you don’t want to wear a smartwatch AND carry the smartphone with you. So a watch with direct connectivity has an huge advantage. For most people, the requirement of needing a smartphone to use a smartwatch is an huge threshold. So Samsung has for now a big advantage. Nevertheless, with the next Apple Event scheduled for September 9, it will be interesting how long this advantage will last.

The market for smartwatches is growing rapidly. Compared to Q2 last year, the number of shipments tripled in Q2-2015. Estimations by research firm IDC suggest that last quarter saw 18.1 million units shipped, compared to 5.6 in the same period last year (source WSJ). Market leader is still San Francisco based Fitbit with 4.4 million units shipped.

Apple still going strong, but what about the stock

The key advantage Apple holds compared to its competitors are its record margins. No other player in the industry is able to book similar high profits. During the previous quarter, it recorded a net income of USD 10.7bn (up approx. 40% YoY), with a 12month bottom line margin of 22.6%. Nevertheless, Apple’s share price became under pressure. Many analysts are worrying how long Apple can maintain these record profits. With China cooling and no real new margin champions in the pipeline, other than fresh updates for its flagship iPhone etc, we might see a justification for these concerns. Next week’s event may offer a better insight on the future. Apple watchers are counting on a fresh iPhone 6s and 6s Plus, a new iPad Pro and an update Apple TV. The latter product could be placed higher in the market than its predecessor, which benefits bottom-line margin. Question is how customers will run to the shop for this product, since competition is fierce.

For now, let’s wait for Samsung’s Gear S2 specs on Thursday and the Apple Event on September 9.

Contents hide
1 Share this:
2 Related

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

How The Iranian Nuclear Weapons Deal Could Lead To Catastrophe
The Moon Is as far away from Russia as it ever was

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

  • Jet Blue Mastercard Activate and Review (Barclaycardus Activate Online)
    Jet Blue Mastercard Activate and Review (Barclaycardus Activate Online)
  • AmericanExpress.com Confirm Card (2022 AMEX Card Review)
    AmericanExpress.com Confirm Card (2022 AMEX Card Review)
  • www.homedepot.com/applynow With Reference Number (2022)
    www.homedepot.com/applynow With Reference Number (2022)
  • Best Buy Account Credit Card Login, Activation, & Review
    Best Buy Account Credit Card Login, Activation, & Review
  • GetMyOffer.CapitalOne.com - Card Application for 2022
    GetMyOffer.CapitalOne.com - Card Application for 2022
  • SunTrust.com Activate MyCard: FAQ, Reviews, Customer Service
    SunTrust.com Activate MyCard: FAQ, Reviews, Customer Service
  • My Instant Offer Code (Apply Lending Club Personal Loan)
    My Instant Offer Code (Apply Lending Club Personal Loan)
  • www.mercurycards.com/activate - Login to Activate Your Mercury Mastercard
    www.mercurycards.com/activate - Login to Activate Your Mercury Mastercard
  • www.WellsFargo.com/ActivateCard - How Do You Activate Wells Fargo Credit Card
    www.WellsFargo.com/ActivateCard - How Do You Activate Wells Fargo Credit Card
  • Credit One Increase Credit Limit Request (How Often Does Credit One Give Increases)
    Credit One Increase Credit Limit Request (How Often Does Credit One Give Increases)




Pages

  • About Capitalist Review
  • Affiliate Policy
  • Capitalist Review
  • CapitalistReview Merch
  • CapitalistReview Privacy Policy
  • CapitalistReview Terms of Use
  • CapitalistReview.com
  • Contact
  • Sponsored, Guest Post, and Advertising

Categories

  • Credit Cards
  • Investing
  • Banking
  • Loans
  • Mortgage
  • Capital One Credit Card
  • SoFi Student Loans

Recent Posts

  • GetMyOffer.CapitalOne.com – Card Application for 2022
  • OpenSkyCC.com/Activate: MyAccount Online Account Activation
  • Exxon Mobil Credit Card Login, Application, & Review
  • Can You Use a Walmart Credit Card at Sam’s Club? (FAQ)
  • Chase Southwest Credit Card Application Status (Chase 2022)

Navigation

Capitalist Review Sitemap

Contact Us

Popular

Jetbluemastercard.com/Activate

mercurycards.com/activate

www.barclaysus.com/activate

Recent Posts

  • GetMyOffer.CapitalOne.com – Card Application for 2022
  • OpenSkyCC.com/Activate: MyAccount Online Account Activation
  • Exxon Mobil Credit Card Login, Application, & Review
  • Can You Use a Walmart Credit Card at Sam’s Club? (FAQ)
  • Chase Southwest Credit Card Application Status (Chase 2022)

RSS Capitalist Review

  • GetMyOffer.CapitalOne.com – Card Application for 2022 May 24, 2022
    Get My Offer From Capital One (Quick Summary) A credit card offer from Capital One Almost always arrives by US Mail in the form of a promotional application Intended for consumers with a good to great credit score If you receive this offer you should be happy as you have a great credit score The […]
    CapitalistReview
  • OpenSkyCC.com/Activate: MyAccount Online Account Activation May 22, 2022
    Activate an OpenSky credit card online Simply rev up the old PC and head on over to www.openskycc.com/activate and follow the on-screen instructions. Activation will take about 5 minutes to complete. Please note in order to obtain the OpenSky credit card you must be 18 years of age or older and a legal resident of […]
    CapitalistReview
  • Exxon Mobil Credit Card Login, Application, & Review May 22, 2022
    Exxon Mobil Credit Card Login If you are an Exxon Mobil credit card customer and are looking to take your credit card online please visit citiretailservices.citibankonline.com and follow the on-screen prompts. You must provide an email address, Alternative site logins include exxonmobilcard.com login and https://citiretailservices.citibankonline.com. Please note you must be 18 years of age or […]
    CapitalistReview
  • Can You Use a Walmart Credit Card at Sam’s Club? (FAQ) May 22, 2022
    Can you use a Walmart credit card at Sam’s club? Walmart issues two credit cards: Walmart MasterCard and the Walmart Rewards Card. You must be 18 years of age or older and a legal resident of the United States. Both Walmart credit cards can be used at Sam’s Club. Visit walmart.capitalone.com to learn more about […]
    CapitalistReview
  • Chase Southwest Credit Card Application Status (Chase 2022) May 22, 2022
    Credit Card Application Status Chase The best way to check the status of a Chase Southwest Credit Card Application Status is by calling 1-(888) 338-2586 and press 0 repeatedly.   Check Your Credit Card Application Chase Online You can visit the Chase Southwest credit card homepage to learn more about the application process, how to […]
    CapitalistReview

You can trust the integrity of our balanced, independent financial advice provided by Capitaliat Review. CR may, however, receive compensation from the issuers of some products mentioned in these articles. Opinions, reviews, analysis, advice, and thoughts are the author’s alone and his/her alone only. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted.

pages

  • About Capitalist Review
  • Affiliate Policy
  • Best Credit Cards of 2016
  • Capitalist Review
  • CapitalistReview Merch
  • CapitalistReview Privacy Policy
  • CapitalistReview Terms of Use
  • CapitalistReview.com
  • Contact
  • IndigoCard.com Apply – Indigo Platinum MasterCard Review
  • Sofi.com/Refinance1: Pre-Selected Refinance Promotional Offer Worth It?
  • Sponsored, Guest Post, and Advertising
  • Student.DRBank.com/BigSavings – Refinance Student Loan with DRB?
  • www.Betterment.com/Start – 5 Reasons to Invest with Betterment
  • www.cashnetusa.com/approved – Prequalified Loan Offer
  • www.SaveWithProsper.com – Prosper Loan Review for Borrowers
  • www.sofi.com reviews – SoFi Review and Sign Up Bonus
  • www.trysofi.com – Student Loan Refinancing From SoFi Worth It?
  • www.upstart.com/myoffer – Upstart Loan Application
  • Best Credit Cards
  • Best Credit Cards For Foodies
  • Coronavirus Home Refi?

© 2016–2022 Capitalist Review