Smartphone Giants Experience Market Turbulence Ahead of Releases

The coming weeks and months are hugely significant  for Apple and Samsung. The iPhone 8 is set to come out later this month, whilst Samsung’s Galaxy S9 is rumoured to be in development, with the Note 8 about to hit stores. Both companies have had a lot to contend with lately, particularly the latter.

This is a guest post by Luke Hatkinson-Kent, a Freelance Financial Writer. If you like his work, you can reach him at [email protected]

Samsung found themselves under the spotlight for all the wrong reasons last month. Acting Chairman Lee Jae-yong was sentenced to five years in jail after being found guilty of corruption. Four other leading figures within the company were also jailed on similar charges.

Following on from this news, Samsung’s share price took an immediate hit, only recovering earlier this week. Shockwaves were sent through the wider Korean stock market too. The Note 8’s release could serve as a welcome distraction for Samsung, but its release is at risk of being overshadowed by the newest iPhone to hit the market.

New Features

The most striking thing about the new iPhone is its size; the screen for one model is expected to be over six inches in size, putting it firmly in the phablet category. The use of 3D Touch is also set to pique the interest of Apple fans, but investors are likely to feel cautious about its performance.

Apple’s Q3 earnings beat market expectations, with sales of the popular iPhone 8 fuelling growth. However, if the new model fails to live up to the hype like the Samsung Galaxy Note 7 and its faulty battery, expect the recent quarter’s gains to be reversed.

Shareholders in both companies will be hoping for any turbulence to end. Looking at market data from LCG, any decline in Apple and Samsung shares could filter through to other listed companies, particularly major retailers who are reliant on supplying them or selling their products to remain profitable.

Launch Nerves

The Galaxy Note 8 isn’t quite as significant as a new iPhone, but Samsung shareholders will be hoping for some much-needed good news. Early reviews have been positive ahead of its launch, with four- and five-star ratings the norm. Following its predecessor’s failings, a successful Note 8 will calm nerves.

Ever since the untimely passing of Steve Jobs, Apple’s products haven’t performed quite so well. A relative lack of innovation for some of its newer phones, coupled with increased competition from Samsung and others, mean that everything from the iPhone 9 onwards needs to stay ahead of the curve, rather than get lost amongst its competitors.

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