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Samsung tweaks Apple’s tail with 3GS-like Galaxy Ace

  • New Samsung phone resembles iPhone 3GS
  • War brewing between the two smartphone giants
  • Apple and Samsung heading for a divorce in other areas
Written by Adam Wajnberg
04/01/2012

Samsung and Apple have been circling each other in the courts lately, with Apple attempting to block sales of the iPad-resembling Galaxy Tab tablet computer. Samsung won that battle, but some recent moves have left some wondering if Samsung is just having fun with the giant from Cupertino.

The Samsung Galaxy Ace, a budget entry for Samsung’s flagship Galaxy line of phones, has just been revealed in the US, with an Australian release set for April. The phone so closely resembles 2008’s iPhone 3G (and the 3GS) that the countdown to an Apple lawsuit must surely be measured in minutes, rather than days. This follows a Christmas ad for the new 8.9” Galaxy Tab, which featured the same child actress that was seen in an ad just months ago, having fun with Apple’s iPhone 4S.

Samsung might be positioning itself as a David to Apple’s Goliath, an odd move for one of the world’s largest companies. The strategy also looks shortsighted in light of the fact that iPhones and iPads contain many Samsung components. Recent news of Apple looking to Sony and LG for future screen supplies, and of Apple acquiring Israeli flash memory developer Anobit for $500 million (their largest acquisition to date) hints at a brewing all-out war between the two.

Samsung is backed by a $200 billion behemoth parent company, with interests ranging from shipbuilding to life insurance. Apple, however, is now the world’s largest technology company, and battles daily with ExxonMobil for the title of world’s largest company by market capitalization. Apple also has amassed an astonishing $100 billion in cash to fight any wars that comes its way. Both companies own roughly 25% of the world’s smartphone market each, though Apple’s profit far outpaces Samsung’s thanks to the iPhone’s integration with the App Store (Samsung takes in little or no money from the sale of apps on their phones, with most profits going to Google and app developers). Either way, a battle between the two will ensure cutting-edge innovation at aggressive prices for 2012, making the smartphone buyer the real winner.

Apple’s flagship iPhone 4S can be had for $17/month on Vodafone’s $50 Infinite Plan, with 500MB of data to use. Samsung’s new Galaxy Nexus, the current standard-bearer for all phones running Android, is available for $15/month on TransACT’s Endless 49 plan, and includes 1GB of data and unlimited calls within Australia for $49. Both deals are subject to a 24 month contract

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