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Home / Business

Samsung's future riding on latest Galaxy Note 8

By Mark Gurman and Sam Kim
Bloomberg·
26 Aug, 2017 03:44 AM4 mins to read

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Samsung's new instalment gets reviewed by Herald tech writer Juha Saarinen - does it pip the iPhone?
After the exploding phone fiasco, company has to get it right this time

The stakes are high for Samsung Electronics' rollout of the Note 8, after the previous model's exploding battery fiasco.

"None of us will ever forget what happened last year," Samsung Mobile chief executive DJ Koh told a New York audience this week at the phone's unveiling.

READ MORE: • href="http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11911053" target="_blank">Gear Friday: Samsung Galaxy Note 8 first look

Like the Note 7, which was scrapped and cost the South Korean company an estimated US$6 billion ($8.3b), the new smartphone sports a big screen and advanced features to make it a more versatile device compared with Samsung's main Galaxy S8 flagship. Like its predecessors, it includes a stylus.

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While the Note doesn't command as wide an appeal as the Galaxy S line, both are premium devices in Samsung's efforts against Apple in the battle for global smartphone supremacy. The Note also helps Samsung keep pressure on its US rival just before the release of three new iPhone models next month.

"The Note 8 is arguably Samsung's most important smartphone launch in its history," says Neil Mawston, executive director at Strategy Analytics. "After the Note 7 battery fiasco, Samsung has been given a second chance by consumers and the company must not screw it up."

Even with the Note 7 debacle and the de facto head of the Samsung conglomerate on trial for bribery and embezzlement, Samsung's ability to sell hardware and earn profits remains intact. Net income was a record 10.8 trillion won ($13b) in the latest quarter, on sales that rose 20 per cent to 61 trillion won in the three months ended June.

The most significant change in the Note 8 is a larger display that curves at the edges like the S8. The screen is noticeably bigger than the Note 7's and slightly larger than the Galaxy S8+'s display.

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The company also posted information about a new smartwatch online. Called the Gear Fit 2 Pro, it will be water-resistant and capable of tracking swimmers, two features that became available on the Apple Watch in 2016.

In an interview with CNBC, Koh confirmed the company was also working on a smart speaker to take on Amazon's Echo and Apple's upcoming HomePod, but he didn't disclose details or timing.

The longer screen on the new phone lets users see more content, such as text messages and emails, without having to scroll, Samsung said in a demonstration. The Note 8 also has new features for the stylus: users can write notes without unlocking the device, draw animated pictures that can be shared with contacts, and words can be highlighted to be translated into different languages.

The bigger screen also lets users swipe from the display's edge to launch two paired apps in split view.

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The new Samsung smartphone will also feature an upgraded camera system that sports two lenses on the back for the first time. Like the iPhone 7 Plus, the advanced optics let users take pictures that can determine depth so the background behind a person's profile can appear blurred.

The Note 8 will also support Gigabit LTE, a faster networking technology for browsing the web and downloading content, which the next iPhone won't have, Bloomberg News has reported.

The Note 8 will face competition from not only Apple's new iPhone, but also Huawei Technologies' Mate 9, LG Electronics' upgraded V series, and Essential's PH-1, according to Mawston. Samsung regained its No. 1 position in global smartphone shipments this year, with 23 per cent of the market, after losing ground during the Note 7 debacle.

California-based Apple had 12 per cent in the second quarter, while Huawei held 11 per cent, according to IHS Markit.

In an effort to reassure customers who may have lost trust in Samsung devices because of the Note 7 fiasco, Samsung said it worked with Underwriters Laboratories, a safety certification firm, to validate the Note 8's reliability.

The new smartphone will sport a battery of 3300 mAh, slightly smaller than the Note 7's power pack.

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Samsung also released a re-purposed version of the Note 7 called the Note FE last month with a smaller battery.

"I know lots of loyal Note series customers, they were so disappointed," Koh said in June. "Disappointment is deeper, the expectation is higher, so I must meet their demand and their expectation through the Note 8."

Galaxy Note 8

• Price: $1599

• Display that curves at the edges like the S8

• 6.3-inch AMOLED screen

• 2960 by 1440 pixel resolution.

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• Enhanced S-Pen tucked into a slot at the bottom

• Octocore processor and six gigabytes of RAM

• Dual camera: wide-angle imager and a telephoto

• Fingerprint sensor at the back, next to the flash

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