First Samsung came for Apple's interface design, then it came for Apple's philosophy

Galaxy S4, the phone we didn't know we wanted until they showed it to us.

Samsung rolled out its all-new GalaxyS4 on Thursday night and its decision to launch its latest smart phone in New York is a clear sign that the South Korean technology giant isn't afraid of the Big Apple. 

The Galaxy S4 comes with enhanced software and hardware features, just ten months after the launch of its highly successful predecessor. According to excited reviews and tweets, the new S4 has miraculous qualities: it responds to body movements, switching songs or pictures at the wave of a hand. And thanks to a special camera, it can also pause a video whenever the user stops looking at the screen. It is slimmer than its predecessor, but has a 5-inch touch screen and a 20 per cent longer-lasting battery.

So, the Galaxy S4 - daughter of the S3 and already-expecting mother of S5, has done what Apple has singularly failed to do since the invention of the iPad - it created something the we never knew we wanted. Or, in Steve Jobs’ words: “People don't know what they want until you show it to them.”

In other words, the S4 is an innovative product, but it’s mainly an excuse to launch a good marketing campaign

After filing a complaint in April 2011, Apple has famously won a lawsuit against Samsung over design user interface and style characteristics patented by Apple for the iPhone and iPad.

However, what Samsung is managing to steal now is the entire philosophy behind Apple’s extraordinary success. And this is not exactly the sort of issue you can appeal against in a tribunal.

Former Apple creative director Ken Segalls, says that, through its advertising, Samsung has succeeded in reinforcing a point (whether it’s true or not): that it has successfully positioned itself as the company delivering innovation, “striking a nerve, and stoking the anti-Apple flames.”

Segalls quotes several figures to back up his opinion. Samsung outspent Apple on marketing last year, and telecoms industry insiders say the S4 launch is setting a new high water mark for smartphone ad spend.  Marketing budgets in some countries will run into tens of millions of dollars, with Samsung’s total spend on the S4 expected to exceed $150m globally. That compares with $108m spent by Apple on marketing the iPhone 5 last year, according to Kantar media monitoring.

Despite the Broadway-style launch, investors gave the launch a chilly welcome, sending Samsung shares down, up to 2 per cent. On the other hand, financial markets follow the same rule: it’s not about what you sell, but what you think you are buying.

The Galaxy S4. Photograph: Getty Images

Sara Perria is the Assistant Editor for Banking and Payments, VRL Financial News

Photo: Getty
Show Hide image

The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.