Apple Inc (NASDAQ:AAPL) will need to step up its game when it launches the iPhone8 later this year to avoid losing its top spot in the smartphone market to Samsung.
Samsung tried to raise the bar with the unveiling of its Galaxy S8 phone yesterday, promoting the device as the biggest revolution in mobiles since the iPhone.
The company hopes to redeem itself after having to recall its Galaxy Note 7 devices last year after a battery fault led to some catching fire.
A standout feature of the S8 is the 5.8-inch curved display with a 83.6% screen-to-body ratio, compared to 72% for the S7 and 65.5% for the iPhone7.
In order to fit the massive screen, Samsung has ditched the physical home button found in the phone’s predecessors.
The standard S8 will cost about US$750 and the larger S8 Plus will be about US$850 - both around US$100 more than comparable iPhones and rival Android phones.
Another big change is the addition of another key on the phone, which takes you to the Bixby assistant. With the Bixby assistant, users can take photos and it will recognise the place and provide information about the image.
Apple is rumoured to be working on introducing something similar. The new iPhone may reportedly feature augmented reality (AR) technology, including the ability to view additional information about an item or place by using the camera on the phone's screen.
Like Samsung, Apple is expected to remove the home button on the iPhone8. It may also feature wireless charging and an organic light-emitting diode screen, rather than the traditional LCD.
Race to the top...
Apple is currently the bestselling smartphone manufacturer with 18.3% market share and 78.3mln shipments in the fourth quarter of 2016, according to the latest data from market research firm IDC.
Samsung came in second place with 18.1% market share and 77.5mln shipments in the quarter.
“While Samsung is bursting out of the box in pushing the limits of screen real estate, its voyage into the increasingly crucial user experience shows that it remains boxed in by smarter and better alternatives,” said Richard Windsor, analyst at Edison Investment Research.
Windsor added: “Most importantly this device is also the first real test that Samsung has had since the Note 7 disaster, which is why the S8 needs to sell very well, confounding the big fall in trust that Samsung has suffered over the last six months.
“Samsung has produced the device that it needs to cement its recovery but now it comes down to consumers, a number of whom have already switched to iOS. “