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Why Samsung and Apple’s New Phone Launches Are The Most Important Ever – CNBC

March 28
14:23 2017

Phone launches follow a pretty similar pattern: Flashy press conference, excitement, pre-orders and the investing world keeping an eye on how well these devices sell.

It’s always high stakes for the companies, but perhaps more than ever, the launch of the Samsung Galaxy S8 on Wednesday, and the anniversary edition of the iPhone later this year, could be the most important smartphone launches ever for both companies.

That’s because it comes at a time when the smartphone market is saturating and after both companies have gone through testing periods. The Galaxy S8, which has been extensively leaked, will be released following the Note 7 scandal last year, in which Samsung was forced to recall and eventually discontinued the handset after several caught fire. The South Korean giant apologized and released a full report on what went wrong in January, but the episode is still fresh in consumers’ minds.

At the same time, Samsung Group’s heir-apparent Jay Y. Lee was charged by prosecutors with bribery and embezzlement connected to South Korea’s ongoing corruption scandal which led to the impeachment of the country’s President Park Geun-hye.

A successful and innovative Galaxy S8 smartphone will be key to shifting attention away from Samsung’s current issues, putting the Note 7 saga to bed, and boosting sales and profit in its mobile division.

Meanwhile, Apple has also had a tough time recently. In its fiscal 2016 results, the U.S. technology giant experienced the first annual revenue decline since 2001, after iPhone sales fell for three consecutive quarters. Many have questioned Apple’s chief executive Tim Cook’s ability to innovate pointing to the Apple Watch as the only new product category under his leadership.

Continue Reading At CNBC

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