Samsung Hits the Market and Gains Share with Galaxy Note II

By Stephanie Blanchard — October 29, 2012

Samsung does not believe users should wait a year “for the next big thing.” Launching its fourth innovative device in as many quarters, the company unveiled its Galaxy Note II on Wednesday, Oct. 24 at the Skylight in New York City, just a day after iPad made waves with the iMini.

“The competition is tough,” said Tim Wagner, Samsung Mobile’s VP/GM of B2B Sales, in an interview with Mobile Enterprise. However, he is confident that the recent iPad mini launch actually helps Samsung in clearly defining the market.

Taking the Note II a step further than its predecessor, the new Android-based device is a combination phone/tablet, “the best of both worlds” without twice the expense, as marketing executives would say.

Featuring SAFE technology, compliance is provided across all platforms, possibly the biggest reason for prosumers to choose Samsung over its alternatives, says Wagner. He also noted that the new smartphone is actually 50% more compliant than its nearest competitor, without naming names.

Into the Galaxy
Available on every U.S. carrier, the Note II features a 5.5 inch display, a 1.6 Ghz quad-core processor and 2GB of internal RAM. Running on Android 4.1 Jelly Bean, the smartphone offers additional features, including a 8-megapixel rear camera and a bigger battery than the original. The 16GB of internal storage space can be expanded to 64GB.

Improved handwriting functions are thanks to the newly designed S-Pen, which allows users to jot down notes or electronically sign e-mails while taking phone calls. The stylus offers advanced hovering capabilities which expands photo albums, e-mails and websites similar to a click of a mouse.

While the initial Galaxy Note allowed users to clip images after snapping a screenshot, the new Note II eliminates the need for screenshots. Users can directly draw on PowerPoint documents or circle important dates on the calendar for faster collaboration with colleagues. Documents, videos and presentations can also be shared with other Note users, or even Samsung devices that have sharing enabled.

Container-Based Solution for Enterprise?

B2B sales of the Note I accounted for 40% of total domestic sales. Samsung projects B2B sales for the Note II will probably increase to 45% (domestic). This figure includes direct enterprise sales to Fortune 1,500 companies (American Airlines is on board to hand out 17,000 units to flight attendants, Dish Networks also just ordered 5,000 units) as well as resellers, carriers and purchases made by prosumers.

According to Wagner, it takes three to six months from market to enterprise. The evolution of the product becoming widely available among employees at various verticals in so short a time period is primarily brand awareness, along with technology being aligned with customer compliance. Samsung also expects to see an increase in sales with the federal government sector, specifically due to being the only combination device with GIPS compliance.

In addition, something bigger is around the corner. Wagner noted there is a gap when it comes to mobile and enterprise, and what is needed is a container-based solution. Samsung plans on seizing that opportunity. He predicts Samsung will start taking a bite out of the global BYOD market as early as first quarter 2013, and recent research supports his forecast.

Market Traction
Mobile analyst firm Juniper Research estimates that the number of smartphone shipments exceeded 157 million in Q3 this year, with Samsung increasing its lead in terms of unit shipments.

In the third quarter of 2012, the Korean-based company shipped a record 56.3 million smartphones, representing almost double the market share of its rival Apple, which sold 26.9 million. Samsung’s flagship device, the Galaxy S3, played a key role, with estimated sales of 18 million in the third quarter.

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