When the hotly anticipated Samsung Galaxy S4 was unveiled last week, not only did Samsung experience a sell-off, but shares of Apple (NASDAQ:AAPL) shot up. In the two days following the launch, Samsung was down about 5% while Apple traded up more than 5%. Clearly, investors weren't blown away by Samsung's newest phone.
In this video, Motley Fool senior technology analyst Eric Bleeker discusses Samsung's new phone and why many are considering it only "evolutionary," rather than game-changing. Yet, Eric also notes that "revolutionary" features are not a prerequisite for domination in today's phone world.
For example, Samsung's yearly marketing budget is larger than HTC's annual sales -- and more than 50% larger than its entire value. Samsung's domination of the Android world is partially the result of well-designed phones that were quick to copy the iPhone's aesthetics. Yet, its dominance is also thanks to a marketing machine. Investors are right to fear that Samsung could lose its grip on the Android smartphone world, but shouldn't overlook that Samsung's domination comes from its financial firepower as much as its innovation.
To see Eric's full thoughts, watch the video below.