Samsung Round – Pointless can sell

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It is pointless but that does not matter.

  • Samsung has finally launched a curved display device.
  • It is the Samsung Galaxy Round which has a 5.7” AMOLED display with a very slight concave shape.
  • It also has a 13MP camera, 1920×1080 resolution, a 2.3Ghz processor and is 7.9mm thin.
  • As a result of the curved screen, the device also has a curved back meaning that it will rock from side to side when laid on a flat surface.
  • This is the basis upon which the added functionality has been based.
  • Rocking the phone to one side will display core information like time, missed calls, emails etc.
  • If listening to music, then the rocking the device one way will advance the track and rocking it the other will play the previous one.
  • Given the high specification and the curved display, the device is very expensive with the price being set at $1,013.
  • Currently the device is only being launched in Korea and has all the hallmarks of an experiment.
  • The curved screen is solution looking for a problem and the functionality that has been implemented around it is just a gimmick.
  • However, that does not matter as history has shown time and again that pointless gimmicks sell phones if they are perceived to be cool.
  • Furthermore, this is a highly differentiated form factor which is a rare thing in a world of black glass Android devices.
  • At this price point, volumes are going to be tiny but is the reception of the device that Samsung will be looking for when it comes to deciding about pushing this form factor across its portfolio and geographies.
  • The device has the added advantage of being less breakable when dropped face down and of being more ergonomic when held to the face.
  • This device is indicative of the problems that the mobile phone industry has with curved displays.
  • It does not know what to do with them and as a result has been reluctant to launch devices due to the added costs involved.
  • However, it is the users which will decide whether this will be a success or not.
  • Long term, I am a big fan of bendable and flexible displays as these have the potential of creating a devices with tablet sized displays that can fold or rollup and fit in the pocket.
  • This is a problem that needs solving as phablets look foolish when held to the head and are much more cumbersome to use one-handed.
  • This could be a major advantage for the Koreans, as only they can make these screens and if they become a differentiator, they could easily be kept in-house.
  • Differentiation is hard to come by in the Android market, but Samsung is trying potentially with some success.

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.