Samsung Galaxy Note 7: 5 Things You Need to Know

Is Samsung Galaxy Note 7 Good for Samsung StockIs Samsung Galaxy Note 7 Good for Samsung Stock?

In a move that will drive number enthusiasts crazy, Samsung Electronics Co Ltd is skipping its “Galaxy Note 6” series to release a “Galaxy Note 7” instead. Why? We’ll get to that in a second, but everything suggests this could be a serious catalyst for Samsung stock.

Although few details have been confirmed, the tentative release of the Galaxy Note 7 is August 2.

The news comes at just the right time. Smartphone sales have been decelerating in recent quarters, prompting many analysts to claim that the market has reached peak penetration, meaning there is little to no growth left in the smartphone market. (Source: “New Galaxy Note 7 Details Reveal Expensive Secret,” Forbes, July 14, 2016.)

I think the Samsung Galaxy Note 7 could turn that around and if not, it could be the exception to the rule. For one thing, the Galaxy Note series occupies a unique space in consumer technology. It also comes with certain features that extend beyond the usual range of smartphones.

Sound a little complicated? Let’s break it down into five points.

1. Why Are Smartphone Sales Slowing Down?

What most analysts fail to understand is that most people have a finite amount of income. Just because companies like Apple launch a new device doesn’t mean people can magically afford it. The expectation that people can buy new smartphones, tablets, and computers every other year is absolutely insane. Once you understand that simple fact, the slowdown in the smartphone, computer, and tablet spaces is understandable. There’s also a flood of global economic uncertainty that is keeping consumer confidence depressed and spending at a minimum.

2. But You’re Still Bullish on the Samsung Galaxy Note 7?

Yes, I am. The Galaxy Note 7 has the potential to break this trend for many different reasons, namely that it is a hybrid between smartphones and tablets. It’s estimated to have a 5.7-inch screen, which is just smaller than the “iPad Pro” screen. It’s also a smartphone, though, so you’re effectively getting two devices for the price of one. Then there’s the virtual reality (VR) component.

3. Can Virtual Reality Affect Sales of the Samsung Note 7?

Earlier this year, Samsung launched “Gear VR” at a $99.00 price point. It is a simple, easy-to-use virtual reality headset powered by Facebook’s Oculus VR. You can just snap a “Samsung Galaxy” phone into the front casing of the Gear VR and it’ll transport you into the content. The technology is simply amazing, but it’s only compatible with Samsung phones. Right now, the company is giving away a Gear VR with each new smartphone. It’s a brilliant move to expand market share while also taking advantage of the new VR paradigm. This could be a major draw for customers to upgrade to the Galaxy Note 7.

4. Why Did Samsung Skip the Galaxy Note 6 Series?

From what I’ve heard, the company wanted symmetry between its Galaxy and Galaxy Note series. Instead of putting out a Samsung Galaxy 7 and a Samsung Galaxy Note 6, the company wanted to sync up its presentations. That may seem like a vague reason, but hey, it could help customers keep track of the product cycle.

5. What Does This Mean for Samsung Stock?

Samsung stock could skyrocket if the Galaxy Note 7 has a successful launch. Personally, I think a lot people will make the shift, because this is a genuine upgrade. It’s not a slicked-up version of an old edition, wrapped in a new name and shiny packaging. The processor alone is a massive upgrade. It’s one of the few chips capable of running virtual reality applications, so there is a legitimate advancement here. All in all, I would say the Samsung Galaxy Note 7 is exactly what the smartphone market needs right now.