Tomorrow's the big day when Samsung finally takes the wraps off the Galaxy S IV. In the following video, senior technology analyst Eric Bleeker discusses why there's such a high level of excitement for the phone's launch, and some possible investment plays related to its launch.
As Eric notes, high-end smartphones soak up profits like sponges. While Apple (NASDAQ:AAPL) is the most profitable smartphone vendor, Samsung controls the majority of Android profits. Its dominance of the high-end market is a huge reason for that; its Galaxy lineup has shipped more than 100 million units.
What are some expectations from the phone tomorrow? Each successive Galaxy phone has shipped with a larger screen. From the first Galaxy's 4-inch screen -- the same size as the iPhone 4 -- to the 4.8-inch screen on the Galaxy S III, it's highly likely Samsung will continue bumping up the screen size, probably to 5 inches.
Eric also notes that, much like how Apple used Siri as a differentiating technology with the iPhone 4S launch, rumors of eye-scrolling technology in the S IV could be Samsung's attempts to differentiate itself. With an R&D budget that swamps other Android vendors, Samsung could increasingly position proprietary technologies as a way of maintaining its brand cachet.
Finally, Eric discusses that with big phone launches, its not just about the company's themselves. For example, speculation has been rampant about whether Samsung will go with OLED technology on its newest Galaxy model. Such a move could be a boon for a company like Universal Display (NASDAQ:OLED), which owns key OLED patents. Also, last-minute reports from Bloomberg have the phone using a Qualcomm (NASDAQ:QCOM) processor in the United States, while an international version would use Samsung's internally developed Exynos "octa-core" processor.
To see Eric's full thoughts, watch the video.