Analyst: Samsung's Galaxy S IV was "Overhyped, Under Delivered"

By
A A A

When Samsung introduced the first Galaxy S phone, it wanted to show the world that it could compete with Apple (NASDAQ: AAPL ). Now, in an effort to outperform the Cupertino, California-based tech giant, Samsung is slowly turning into a firm that resembles its competitor. Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, interviewed somewhere around 50 people who attended the Galaxy S IV launch last night. His converged view is as follows:

"Samsung Galaxy S IV - Overhyped and Under Delivered." "Just an okay offering -- a mix of Samsung Galaxy Note II and Samsung S III." "Not innovative - Samsung is confused… What is an application and what is an operating system. [We are] expecting a mediocre customer acceptance."

Chowdhry also took issue with the screen size.

"Some liked the big screen size. [It] makes browsing easy, and a lot can get accomplished," he said in an e-mail to investors. "Some preferred [the] somewhat narrower screen size. Smartphone[s] should be one hand device[s]. Galaxy S IV is too wide to be used by one hand. It's a two-hand device."


Chowdhry said that if two hands are needed, the converged view is that people will simply use a tablet.

"Some said they would prefer a much smaller device, [the] size of [a] credit card, as they already have a tablet," he added. "Initial indications are that that the addressable market for Galaxy S4 is probably one-third of [the] total smartphone market, as large screens are probably not universally appealing to customers anymore."

Google's (NASDAQ: GOOG ) services also pose a threat.

"[The] ability to have multiple video chats on Samsung's Galaxy S IV is a nice feature, but almost everyone was quick to point out that if that is the interest of the user, then Google Hangouts looks like a better option," Chowdhry warned.

"Almost everyone liked the Galaxy S IV's ability to shoot 100 shots in four seconds, but almost everyone was quick to point out that this scenario makes no sense on a smartphone. [It] may make more sense on a dedicated camera."

Chowdhry also broke down the Galaxy S IV's success rate based on the devices that people currently own.

"If someone came from Blackberry (NASDAQ: BBRY ), they loved [the] Samsung Galaxy S IV." "If someone is using [the] Galaxy S III, they see S IV [as] just a minor improvement." "If someone is using [the] Galaxy Note II, they like S IV, but will not upgrade as they had recently purchased [the] Note II." "If someone is using [the] iPhone, they see no wow factor in the S IV."

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis@benzingapro.com. Follow him @LouisBedigianBZ

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Profit with More New & Research . Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AAPL , BBRY , GOOG

Benzinga


More from Benzinga:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com