Samsung unveils iris-reading note 7 to keep Apple at bay

Bloomberg

After extending its lead over Apple Inc. in the global smartphone market with the Galaxy S7, Samsung Electronics Co. is now trying to keep that spirit alive before a new iPhone arrives.
The South Korean company announced the latest iteration of its large-screen smartphone with the 5.7-inch Note 7 that can be unlocked with an iris-scanning camera. Sporting a display that curves down both sides, Samsung’s successor to the Note 5 skipped a number to synchronize its name with the technology used for its top-selling Galaxy S7.
With consumers putting greater emphasis on multimedia when choosing devices, the Note 7 also supports so-called high-dynamic range video content and the company partnered with Amazon.com Inc. to make such streaming content available in selected regions in time for the launch. HDR is seen as one of the next big advances in television and movie picture quality, alongside 4K Ultra HD and virtual reality.
Samsung drew attention to the extra security that an iris-scanner providers, because the human retina is virtually impossible to replicate and more accurate. That may help security-conscious users warm to the new phone but, without wider acceptance of mobile payments and biometric verification, may not prove enough of a selling point to many would-be buyers.
“Adding an iris-reading sensor was a positive move. But to make a bigger splash, it needs to be backed up by more of the financial and payments industry,” said Park Kang Ho, an analyst at Daishin Securities Co. in Seoul. “It isn’t something that consumers would flock to. I don’t think the phone will sharply outsell the previous Note 5 model.”
The device announcement comes at least a month before Apple is expected to unveil revamped iPhones. The Note 7 will go on sale starting Aug. 19 and roll out gradually across the globe, Samsung said. The new device comes with Samsung Pay services and will be offered in four different colors, including gold, black, silver and blue. The Korean company also unveiled an upgraded version of its Gear VR, a gadget that twins with a Samsung phone to display virtual reality images. U.S. carriers including Verizon Wireless, AT&T and T-Mobile are offering the latest Note starting at around $850 without a plan, surpassing the $749 iPhone 6S Plus.
Shares of Samsung finished 2 percent lower at 1,517,000 won in Seoul. The stock has risen 20 percent this year, putting it on pace for its first annual gain since 2012.

ENHANCED SECURITY
The iris-scanning technology, which relies on an infrared camera lens mounted on the front of the phone, can also be used to unlock a secure folder within the Android operating system. Users can store sensitive documents and apps in the directory, which remain encrypted even if the phone is unlocked. Iris-detection is fast, identifying a registered face and unlocking the device in less than a second during a demonstration in London. Users will be able to authenticate Samsung Pay transactions via the new technology.
Other features of the phone include an improved stylus that can be used underwater or when the screen is wet. Waterproofing the pen makes it easier to use when it rains as liquid on the screen generally makes fingers less effective, while the new pen nub will work just the same. This will be particularly useful to people who work outside, like delivery drivers, Eric McCarty, vice president of Samsung America mobile, told reporters in New York before the product announcement.
It also has a 12-megapixel rear-facing camera. Compared to its predecessor it has a higher-capacity battery, faster performance, a lighter-weight design and a USB type C connector at the base instead of the older, more common Micro USB port. The pressure sensitivity of the new pen has been improved to be exactly like a ballpoint, the company said.