Samsung Electronics has chosen the name of new Galaxy Note as ‘Galaxy Note 7’and has decided to continue popularity of Galaxy S7. It has decided to skip over Galaxy Note 6 to eliminate any inconsistency with an image that can occur as numbers of two products’ brands are different. It is also applying dual-edge on Note series for the first time. This is seen as Samsung Electronics’ strategy to maximize marketability of ‘Galaxy Note7’, which is considered as Samsung Electronics’ biggest anticipated product, and to widen a gap between itself and Apple.
According to multiple representative of telecommunication industry, Samsung Electronics has chosen the name of new Galaxy Note, which is to be released in second half of 2016, as Galaxy Note 7. Although it is supposedly be called as Galaxy Note 6 as Galaxy Note 5 was released last year, Samsung Electronics made a bold decision of jumping over one level. “Within Samsung Electronics, a new Galaxy Note is already being called as Galaxy Note 7.” said a representative for an industry.
This is the first time Samsung Electronics is jumping over a number since it started releasing Galaxy Smartphones. Starting from 2010 until now, it has numbered Galaxy S series from 1 through 7 without leaving any numbers out. Starting from 2011 until last year, it had numbered Galaxy Note series from 1 through 5 without leaving any numbers out.
It is uncommon to jump over a number for Smartphones that are released in series. LG Electronics had steadily released G series from Optimus G to G5, and Sony also released its Xperia Z series from 1 through 5. Only Apple once skipped over iPhone 2 in 2008 and released iPhone 3G since iPhone was released in 2007.
One of the most important reasons on why Samsung Electronics has decided to skip over Galaxy Note 6 is because it wants to make model number of Galaxy Note consistent with Galaxy S7. Model number of Galaxy Note series is always one number lower than Galaxy S series because it was released one year later than Galaxy S series.
“When Galaxy Note 6 that has its model number lower than Galaxy S7, which is the newest model, is released, it can give out a feeling that it is an outdated phone.” said a high-ranking representative of a telecommunication industry. “It is known that Samsung Electronics has made the numbers same to unify a premium image.”
Samsung Electronics is also introducing dual-edge on the front and back of Galaxy Note 7 for the first time on Galaxy Note series. By doing so, curvatures of edges of the front and the back will be the same. Until now, Samsung Electronics applied edge only on one side (Galaxy Note 4). For Galaxy Note 5, it applied edge only on the back and made the front flat. Dual-edge can help Samsung Electronics to hold superiority in competition with other businesses since it has high level of difficulty in technology.
Samsung Electronics is thinking about starting to produce Galaxy Note 7 in the middle of July and release it early or middle of August. It can be earlier than the 20th of August, which is the date when Galaxy Note 5 was released last year. Release date of Galaxy Note series is being pushed forward little by little from October (Note 1) to September (Note 2, 3, and 4) and to August (Note 5).
It can be see that Samsung Electronics is trying to separate a gap between itself and its competitors through this strategy and maximize sales volume by avoiding September and October, which are months when iPhone 7 is expected to be released, and increasing marketability. By releasing Galaxy S7 in early March, which is a month earlier than last year when Galaxy S6 was released, total of 81 million Smartphones (Gartner) were sold in first quarter of this year. It was similar performance as first quarter of last year. On the other hand, Apple’s sales volume decreased rapidly from 61 million to in 2015 to 51.6 million in 2016 and its market shares also decreased sharply from 17.9% to 14.8%.
Samsung has succeeded in capturing both sales volume and performance as sales and operating profit for IM Sector in first quarter increased 6.6% and 42% compared to first quarter of last year. It is expected that it will secure definite superiority in Smartphone markets if Galaxy Note 7 is a success.
On the other hand, Samsung electronics announced that it cannot confirm any official information regarding its new product.
Staff Reporter Kim, Yongjoo | kyj@etnews.com & Staff Reporter Choi, Ho | snoop@etnews.com