Reviews for the first major smartwatch are out, and they’re not good. The Samsung Galaxy Gear is not a good product, and it is unlikely to take off any time soon. A Cnet piece on the wearable computer paints it as an almost abortive attempt by Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) to preempt the eminence of Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) has rarely been the first to release a product. It’s often the first to release one that works well, however.
According to the Cnet report, which was authored by Shara Tibken, the Samsung Galaxy Gear went from design to launch in a matter of months. The piece is definitely worth a read, even though the smartwatch may not be worth a buy. It demonstrates the kind of effect that Apple Inc. (NASDAQ:AAPL) has on the technology industry even when it’s not trying.
Southpoint Capital Returns 28.6% In 2020 Thanks To Recovery Bets Like Uber [Exclusive]
Long/short equity fund Southpoint Capital returned 14.7% in the fourth quarter of 2020, and 28.6% for 2020 as a whole, that's according to a copy of the firm's annual letter to investors, which ValueWalk has been able to review. Q4 2020 hedge fund letters, conferences and more This return compared to a 12.1% gain in Read More
Apple pushes Samsung
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is often accused of copying Apple Inc. (NASDAQ:AAPL). Samsung has even been legally remanded for copying Apple Inc. (NASDAQ:AAPL). This time was going to be different. Samsung was going to enter the smartwatch category before Apple Inc. (NASDA:AAPL) got a chance. The drive to beat Apple to market appears to have been stronger than the drive to release a decent smartwatch, and it shows in the product.
Apple Inc. (NASDAQ:AAPL) is able to drive decisions at Samsung even when the company is not involved in the market. The company dominates the mobile world so thoroughly that the threat of wearable tech from Apple Inc. (NASDAQ:AAPL) created a drive to release a workable smartwatch at Samsung. Apple Inc. (NASDAQ:AAPL) didn’t show up for the fight, but Samsung still managed to lose.
Apple wins without entering competition
The high profile release of an unworkable smartwatch from Samsung is a wonderful PR move for Apple Inc. (NASDAQ:AAPL). Apple fans who aren’t fans of the smartwatch concept will be more interested now if it shows the company can beat Samsung yet again. The Samsung publicity around the release shows that smartwatches are a thing, and they can be awful.
If Apple Inc. (NASDAQ:AAPL) is looking to release its own smartwatch in the near future, the memory of the Samsung Galaxy Gear will drive sales. Samsung bet a lot of money on preempting Apple Inc. (NASDAQ:AAPL). If there’s a Galaxy Gear 2 before an iWatch, it might be able to get somewhere. Otherwise, Apple has won the smartwatch battle simply by letting Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) beat itself.