Samsung continues to maintain parity with Apple, posting big quarterly profits. But is Samsung’s claim that the Galaxy S 3 is poised for massive sales really true, or is it a play to garner attention away from iPhone 5 speculation?
In the world of tech, there should be a whole series of DVDs entitled something like iPhone Competitors’ CEOs Gone Wild. In an effort to curtail the unchallenged buzz of speculative Apple products like the iPhone 5, iTV, and Mini iPad, Cupertino’s competitors habitually say the stupidest things. You’ll recall, for example, last September when HTC President Martin Fichter proclaimed that “iPhones are not that cool anymore,” because his daughter’s friends at college told him so.
Then, in December, Nokia’s Director of Portfolio, Product Management, and Sales Niels Munksgaard had this to say, ““What we see is that youth are pretty much fed up with iPhones. Everyone has the iPhone.” Oh yeah: Apple has a real problem appealing to the youth demographic.
Today, Samsung made its own pitch for inclusion in iPhone Competitors’ CEOs Gone Wild in their quarterly earnings report by trying to convince themselves and investors that the Samsung Galaxy S 3 is going to be just as popular and successful as the iPhone 5.
In their report, in which they posted an impressive $5.15 billion quarterly profit, Samsung’s senior vice president and head of investor relations Robert Yi had to go and say something silly: ”We anticipate very strong demand for Galaxy S III . . . When there’s strong demand in the market, we don’t necessarily need to spend a lot of marketing dollars to promote sales.” Sounds a little bit like the free speculative buzz that Apple enjoys prior to release of its new products.
Samsung’s earnings do not come as a surprise: we recently reported in another article how Samsung’s early 2012 sales were being buoyed by sales of the Galaxy Note. But we put it into perspective: Samsung sold 4 million Galaxy Notes in one quarter — Apple sold 4 million iPhone 4s units in a weekend. Samsung manages to compete against Apple in earnings based on the fact that they produce a wide range of products, from components (conveniently for the biggest-selling mobile devices in the world) to mobile gadgets of their own.
What’s laughable is that Samsung is looking to characterize interest in the Galaxy S 3 as being likened to that of the iPhone 5. Aside from the buzz surrounding their cryptic tgeltaayehxnx.com promotional site for the GS3, and the anticipation of the GS3′s announcement in London next week — most of which is coming from iPhone enthusiasts who are looking to gauge the GS3 against iPhone 5 speculation — Samsung’s “buzz” isn’t even close to that of Apple and the iPhone 5. This year alone, Samsung has spent copious amounts of money on television advertising. And a quick comparison of the “iPhone 5″ and “Galaxy S 3″ keywords reveals that the the iPhone 5 gets 20,400,000 global monthly searches to Samsung’s 1,000,000 monthly searches for the GS3.
Look, there’s no question that Samsung makes a mean smartphone; no one is contesting that the GS3 will be a natural competitor to the iPhone 5. But for Samsung to claim interest in the GS3 to be anything like the iPhone 5 is laughable. And by suggesting that they “don’t necessarily need to spend a lot of marketing dollars to promote sales” is trying to channel the synergistic power of the iPhone 5 rumor mill to bolster interest without Apple spending a nickel.
Dream on, Samsung.
By Michael Nace