Samsung (KRX:005930) intimidated to launch Galaxy Note early?

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By Stefan Larson on September 25, 2014 Technology & Software

Samsung (KRX:005930) in attempts to compete with its rival Apple has launched the new ‘Galaxy Note smartphone’ which is bigger in size than the last one. This was earlier than it was anticipated, but after the record sales made by iPhone 6 Samsung (KRX:005930) was pushed to reveal its new model in a hurry. These new Notes will be initially launched in South Korea and China this month and afterwards will be available in 140 nations across the world within a month.

In order to protect it from a black market of cheaper-Chinese versions of Galaxy Note, for the first time Samsung (KRX:005930) has planned to launch the smartphone in China before other markets. Secondly, iPhone 6 has hit a record sales of 10 million on its opening weekend collectively in U.S, Britain, Australia, Canada, France, Germany, Hong Kong, Japan, Puerto Rico and Singapore; this has also prompted the giant company to move forward regarding its schedule.

Initially Samsung (KRX:005930) was controlling the market with its Galaxy Note series launched in the year 2011. This device that came to be known as ‘phablet’ was a cross between big screen tablets and mobile phones. It had easily become the smartphone king with this series.

The two giants as well as great rivals Apple and Samsung (KRX:005930) have been in a head on battle for the past 3 years; each blaming the other for copying and replicating their features. This battle has proved to be aggressive and costly. Finally last month both the companies decided to drop the copyright charges outside the United States.

Samsung (KRX:005930) is a name associated with HD televisions and variety of electronic and home appliances but its major source of profit is through smartphones and mobile services.

Huawei and Lenovo, being the cheaper Chinese brands are slowly taking over the market and cutting into this profit figure. These less expensive and copied phones have already cost Samsung (KRX:005930) a 20% drop in their profits. This has been confirmed by Lee Don-Joo the head of marketing for Samsung (KRX:005930) , that the company is facing problems but is also trying to find solutions to deal with this problem, an early launch being one of them.

Note 4 after Note 3 is predicted to generate the same sales number with Note 4 having a bigger screen and the unique Samsung (KRX:005930) stylus pen, a feature non-existent in iPhone 6 costing around $920. Samsung (KRX:005930) is still topping the charts of smartphone production with almost 74 million handsets sold worldwide. It is now also making its mark in the smartwatch world, by launching its latest adaptation of Galaxy Gear in the coming month. According to the International Data Corp, Samsung (KRX:005930) shipped a record number of 295.3 Million in the second quarter!

Besides that there are reports that Samsung (KRX:005930) is also working on new internet-enabled devices that can be used on the go and can be worn as well. They have applied this technology in their home based appliances and other electronic devices as well to come up with a unique concept of controlling home appliances connected through the internet.