Samsung unwraps the Galaxy S24
The wait is over for Galaxy fans as Samsung unwrapped the upcoming line of the S24 handsets, which are by far the most advanced smartphone hardware (and software) Samsung built to date. New phones come with improved imaging hardware, larger screens, bigger batteries, more RAM and most importantly, the new Galaxy AI (artificial intelligence) software powered by Google and Qualcomm (the phones boast Qualcomm’s latest Snapdragon 8 Gen 3 silicon).
As in previous years, the S24 series models come in three variants: the S24, S24+ and the flagship S24 Ultra. As noted earlier, specs improved across the board such as the 0.1” larger screen due to smaller bezels on the S24 or S24+ or the thinner titanium frame, more RAM (12 GB) and better optics on the S24 Ultra version. But the real game changer is the AI software which offers various artificial intelligence-driven services and features such as two-way language translation during live voice calls and messaging, advanced photo editing as well as the "Circle to Search" feature that allows users circle and highlight any image or text in any application and running a quick search via Google.
Samsung also announced that it will support the new S24 for seven years of software upgrades. Pricing remained unchanged for the S24 (starting at $799) and the S24+ (starting at $999) models, while the S24 Ultra model now starts at $1299, a $100 above the starting price of its predecessor S23. All phones will ship beginning January 31.
The Circana Take:
- The new S24 series, particularly the S24 Ultra model, is the best smartphone hardware Samsung built to date. The new Galaxy AI should be relatively easy to market as the new AI-powered features solve real problems rather than just being cool gimmicks, thus it should help Samsung convince older generation Galaxy S users waiting on the sidelines for a device upgrade. Circana’s upcoming Connected Intelligence Mobility survey will uncover smartphone shoppers’ sentiment towards AI features on phones, so stay tuned.
- Postpaid carriers’ aggressive deals should also help accelerate the upgrade cycle for Samsung, which, just like any other smartphone brand, has suffered from consumers’ reluctance in replacing their smartphones. Samsung is poised to see strong demand from its existing base as well as from older flagship users on competing brands such as Google or OnePlus. On the other hand, winning business from iOS users will be as challenging as ever despite the great hardware and software combination of the S24 as postpaid iPhone users show a whopping 96% loyalty rate and do not defect to Android.
- Samsung’s announcement that it will offer software support for seven years is a response to Google’s move with the launch of the Pixel 8 series. This support should have minimal influence on the potential S24 buyers as very few (if not none) of them will use their S24 for seven years. However, Samsung has a strong refurbished phone business, and this long-term software commitment should offer additional peace of mind for those shoppers who purchase a refurbished Galaxy S24 when it becomes available in the coming years.
Apple Vision Pro debuts and sells out
Apple opened the Vision Pro spatial computing device for pre-orders last Friday and, as expected, the device sold out in a matter of hours with shipping availability slipping into March. As of this Monday morning, Apple does not commit to delivering the device to any U.S. address before March 5. Notably, Apple Vision Pro became available for pre-orders in the US in storage options (256 GB at $3,499, 512 GB at $3,699, 1TB at $3,899) and all three variants sold out within couple hours.
The Circana Take:
- This is what we wrote on Apple’s iconic spatial computing device when it was first announced back in June 2023, and our analysis remain unchanged:
“There is no question that the Vision Pro+ is expensive and at the same time we have no doubt that Apple will have difficulty keeping up with the demand (due to a controlled supply strategy) even at this price point. We are not going to get into the arguments about why the price is so high or why it is justified because it converges so many different product categories into a unique form factor offering an immersive experience; this is a 1.0 product, and it is not targeting the mass market.”
- Despite its limited reach due to low supply and extremely high price, the commercial availability of the Vision Pro will give Apple the ability to boost its marketing on the latest iPhone 15 Pro models, which can capture spatial videos. Apple and its carrier partners can convince potential iPhone 15 buyers to purchase the more expensive iPhone 15 Pro variant instead for future proofing purposes. While the second or even the third generation of the Vision Pro device will be out of reach for many of these consumers, future proofing is a straightforward way to persuade users to the upper tier 15 Pro model.