Samsung Has Strong Q1. Can They Keep it Up with the Upcoming Launch of the iPhone 8?

There are some reports out there pointing to how well Samsung has done in it’s first quarter.  All thanks to the Galaxy S8 and S8+.  These reports are touting it to be “the best selling smart phone of all time”.  That is quite the title.  And even a bigger deal if true.  So what exactly does this mean?  First of all, it means that more people are using Android devices.  Which should send a loud message to Apple.  Especially since we are mere months away from the launch of the iPhone 8.  Or whatever it’s going to be called.  But another thing to consider in all of this, is that Samsung doesn’t just make phones.  They have a whole range of products including TVs (of which I own), appliances, printers, tablets and home entertainment systems.  To name a few.  So of course they’re doing well.  However, it seems that the reason they are doing so well is because of the new phones.

I kind of like conspiracy theories.  Or at least the idea of them.  Not in a nefarious way, but just knowing that there might be more at play than we know is kind of intriguing.  In today’s society, we assume we know almost anything.  Or we can find out almost anything through a quick Google search.  And you are likely right.  So why am I talking about this in relation to Samsung?  Well, it is also rumoured that Samsung is going to have a strong second quarter.  And without the launch of another phone, what could be helping to drive their profits up?  It is reported that Samsung is actually going to be selling OLED panels to Apple for the upcoming iPhone 8 release.

We know that Apple is scheduled to release it’s phone in September.  Or at least that’s what we’ve been told.  But there is a possibility that the release date will get pushed back.  But can they afford to?  And really, do they need to compete with Samsung in a way that I’ve alluded to for over a month now?  Maybe not.  The platforms themselves are different.  You have your die-hard users in one camp, who will never stray from their platform.  But on the other hand, you have people who are on the fence about what type of phone to purchase.  There is so much that is enticing about Apple.  Even if you get away from the phone itself and look at how you can integrate into other devices.  They have a bit of a niche going for themselves.  Maybe “niche” is downplaying it, but I think it’s a fair descriptor in this instance.

So should these strong sales even worry Apple?  My guess is no.  The iPhone 8 is rumoured to cost around $1000.  That’s a bit pricey for a phone, especially if you want to upgrade it in a couple of years.  But in Apple’s case, and this is just my opinion, you are paying for a status symbol.  Yes, the Galaxy S8 is really cool, but Samsung doesn’t have the same “status” that Apple does.  The Galaxy S8 has a lot of really neat and great features to it, but again, there is something to be said about Apple.  Maybe I’m biased here, but I don’t think Apple has much to worry about.  The Galaxy S8 had a marginally lower price point.  But people who want to buy an Apple product are likely going to spend the extra money.  And this could be for many reasons.  Not necessarily from a “status” perspective.  But think about how you can utilize iMessage, FaceTime or contacts from one device to another. It’s seamless.  I can grab my iPad or Macbook and pick up where I left off.

As always, I think there is room in the market for this type of competition.  I think it’s great news that Samsung is having such a strong first quarter, and hopefully that continues.  I still think it’s interesting that they are selling OLED panels to essentially their rivals for the iPhone 8 release.  But at the same time, they have a proven product, and Apple wants the best quality.  Whether or not you think they are rivals, they both produce similar products and give the consumers the ability to choose.  And to me, that is what matters in the end.  Choice.