generated about 68% of the company's revenue, and probably
a greater percentage of its net income. iPhone customers are
famously loyal, but the company still faces a healthy amount
of competition in the high-end handset market.
If history is any indication, Apple's next flagship smartphone
(presumably called the iPhone 7) will make its debut in
September.
The most significant competition it's likely to face, however,
could arrive this month. Samsung's Galaxy
S7 and LG's G5
are scheduled to make their debuts in the near future, and
they should be among the most popular Android-powered
smartphones of 2016.
Samsung's S-generation
Last year's Galaxy S6 was the most revolutionary smartphone
Samsung had released in years. Spurning its traditional plastic
design, Samsung released an attractive handset made of both
metal and glass, with a top-notch display and beefy
processor.
Unfortunately, such design
decisions necessitated compromises in usability, and
Samsung opted to cut several long-standing features. Unlike
its predecessor, the Galaxy S6's battery can not be replaced,
nor can its storage be expanded, and it isn't the least bit
waterproof.
The Galaxy S7 brings back two of three: Samsung's flagship
smartphone once again supports micro SD storage, and it's
waterproof at a depth of up to 1.5 meters. Galaxy S7 owners
will not be able to replace the battery, but they can recharge it
quickly, even wirelessly, and it's more than 17% larger than
the one found in the Galaxy S6.
From a physical standpoint, the phone is
nearly indistinguishable from its predecessor, but the back
now curves slightly, which may make the phone easier to
hold, and the camera doesn't stick out nearly as much from
the back. Unsurprisingly, the camera itself is improved and
the processor is faster.
It supports Samsung's Gear VR headset, and those who buy
the phone by March 18 will get one for free (a $100 value).
The phone itself is currently available for pre-order and
should arrive in stores on March 11.
LG unveils the first modular smartphone
Samsung's smartphone business has come under pressure in
recent years, as competition has intensified. Still, Samsung
was the world's largest seller of smartphones last year,
according to research firm IDC. LG, in contrast, wasn't among
the top five. It makes sense, then, that the company would be
more aggressive with its 2016 flagship.
G
The G5 is a dramatic departure from its predecessor.
It offers the improvements most would expect -- a better
camera, a faster processor, more RAM -- and some new
features that are quickly becoming the standard among
flagship Android handsets (a fingerprint scanner, USB-C).
But it also offers something quite novel.
The phone's lower bezel is replaceable, and can be swapped
out for a variety of different modules that expand the device's
functionality.
So far, LG has announced two.
The first, made in partnership with acclaimed speaker
specialist Bang & Olufsen, is a high-end digital audio adapter
that should provide G5 owners with a better acoustic
experience. The second is a grip with dedicated camera
buttons and a larger battery -- ideal for those who wish to use
the G5 as their primary digital camera.
Technically, the G5 isn't the first truly modular
smartphone: Google unveiled a fully modular Project Ara
prototype last year. But that phone never went into
production, and Project Ara (the company's moonshot bet
aimed at popularizing the concept) remains delayed
indefinitely.
It's easy to imagine a suite of useful modules that LG could
design for the G5: an e-ink display, a dedicated gaming
controller, a solar charging panel, among many others. Of
course, it's also possible that LG neglects the feature, and it's
viewed, in retrospect, as a useless gimmick. Regardless, the
G5 is perhaps the most exciting Android flagship in years. It
does not have a firm release date just yet, but should arrive in
the near future.
A three-horse race
In the U.S., Apple, Samsung, and LG are the most popular
smartphone vendors. In the U.S., there were nearly 200
million smartphone owners in the fourth quarter last year,
according to comScore. Of those, 42.9% were iPhones
owners, 28.4% had Samsung devices, and 9.9% sported LG
handsets.
Other firms, including Huawei and Xiaomi, provide tough
competition for Apple's handset in other markets, most
notably China, but the U.S. remains the second-largest
smartphone market in the world, and one of the strongest for
the iPhone in particular. Other handsets are likely to
challenge the iPhone in 2016, but baring a radical shakeup,
the Galaxy S7 and G5 could provide the most compelling
competition.
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