Will The Galaxy S8 Deliver For Samsung Shareholders?

SSNLF: Samsung Electronics logo
SSNLF
Samsung Electronics

This year is expected to be a very important one for Samsung Electronics‘ (OTC:SSNLF) smartphone business as it looks to recover from a tough 2016, which saw its brand take a beating after it discontinued the fire-prone Note 7 smartphone. Competition is also expected to heat up in the top end of the market, as key rival Apple launches its 10th anniversary iPhone later this year, sporting the company’s first new industrial design since 2014. Moreover, Samsung’s OS partner Google will likely ramp up production of its critically acclaimed Pixel handset, meaning that Samsung can no longer take its position as the go-to brand for high-end Android customers for granted.

Samsung will count on its 2017 flagship device, the Galaxy S8, which is expected to go on sale in mid-April, to restore its standing as a vendor of cutting edge hardware, while bringing in the sales volumes. The company apparently has high expectations for the upcoming device, with The Korea Herald reporting that it has set a shipment target of about 60 million units for this year, roughly 25% ahead of its initial target for the S7. Below we take a look at what to expect from Samsung’s latest flagship.

We have a $1,340 price estimate for Samsung Electronics, which is slightly ahead of the current market price.

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See our complete analysis for Samsung

Expect Faster and Sleeker Hardware With A Greater Focus On Software

Samsung is likely to continue to adopt the dual-model strategy with the S8 – offering a flat screen version alongside a more pricey, dual curved screen device dubbed the Edge – as it looks to cater to the largest possible customer base with the new devices. While the Galaxy S8 is likely to see some modest design changes, such as the removal of the home button and a sleeker design, the spec bumps could be significant. The device is expected to be powered by Qualcomm’s latest Snapdragon 835 application processors, which are faster, more compact and battery efficient (25% lower power consumption) compared to previous generation chips. The S8 will also likely sport new innovations from Samsung’s components arm. The most interesting changes, however, could come on the software and cloud-based services front, as Samsung looks to differentiate itself versus value Android vendors at the low end and Google’s Pixel devices at the high end of the market. To that end, the company is expected to launch its own AI-based voice assistant with the Galaxy S8, leveraging technology developed by Viv, a company that Samsung acquired a few months ago. Samsung could also make some refinements to its smartphone user interface.

Samsung will be launching the S8 in mid-April, more than a month later than the launch schedule it adopted with the Galaxy S7. This should give the firm ample time to iron out design and quality issues and potentially make adequate supply available in time for the launch. Moreover, the firm does not want to take any chances with the S8, as the Note 7 fiasco was partly attributed to Samsung’s aggressive product development and launch cycles.

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