Samsung's brand new Galaxy Note 2, unveiled on Wednesday, Aug. 29, at the company's Mobile Unpacked event at IFA in Berlin, is coming in a rather crowded and highly competitive market. According to recent rumors revolving around Apple's near-future plans, the new Galaxy Note will not only face competition from Apple's forthcoming iPhone 5, but also an iPad Mini. Will Samsung manage to take on its archrival?

The Samsung Galaxy Note 2 will become available worldwide by the end of the year. Meanwhile, Apple is expected to launch the next-generation iPhone first, then release a cheaper version of its popular iPad. The iPad Mini, reportedly sporting a display smaller than 8 inches, will reportedly arrive after the launch of the Galaxy Note 2. Long story short, Samsung's Galaxy Note 2 will face competition from two Apple products, both in the U.S. and overseas.

Display Size

Samsung's new Galaxy Note boasts a huge 5.55-inch display, even larger than the original Galaxy Note's display. The 5.55-inch HD Super AMOLED display has a resolution of 1,280 x 720 pixels with a wide-screen 16:9 aspect ratio "optimized for today's visually oriented apps," according to Samsung. The new "phablet" also packs a quad-core Exynos processor clocked at 1.6GHz, advanced S Pen features, as well as the latest and greatest version of Android to date - Android 4.1 Jelly Bean. Meanwhile, Apple's iPad Mini is rumored to sport a 7.8-inch display, or at least two inches (diagonal) larger than the Samsung Galaxy Note 2. The expected display size for the next-generation iPhone is 4 inches.

Based on these display sizes, Samsung's new "phablet" would sit between the iPhone 5 and the iPad Mini, while sporting the top features of both. Carriers will surely subsidize the iPhone 5 to attract more customers, while the iPad Mini will take on the low-cost tablet market, going head to head with Google's Nexus 7 and Amazon's Kindle Fire. It's a tough environment on either front, and Samsung needs a hit if it wants to outsell the iPhone 5 or the iPad Mini.

Sounds Good, but How Much?

As it turns out, Samsung's products are not that cheap. In fact, Samsung's new tablet PC has higher profit margins than Apple's iPad. According to recent reports, the Galaxy Note 10.1 Wi-Fi-only model has a $260 bill of materials (BOM) and sells for $499, while the 3G Galaxy Note 10.1 costs $283 to make and sells for $460. Considering that the Samsung Galaxy Note 2 has a smaller display and smaller housing, it's safe to assume it will have a lower BOM than the 3G Galaxy Note 10.1.

If Samsung wants Galaxy Note 2 sales to surge, it needs to lure customers with an affordable retail price, like Google did with its Nexus 7 tablet. According to analysts, Google's first tablet is close to hitting the 8-million sales mark, which would make it the most popular single Android tablet PC to date. Although the second-generation Galaxy Note is out now, there is no word on pricing yet.

Naturally, the specs and features of a device are the most important, but ultimately the price can make or break a product. In budget-conscious times, people will often compromise and settle for a better price. If an LTE Galaxy Note 2 comes with an affordable price on contract, or if a 3G international version of the 16GB Galaxy Note 2 sports an attractive price tag, it could be a game changer. Until both products make their official debut, however, it is difficult to predict how things will unfold. Rumors may or may not prove to be accurate, but one thing's for sure: the Apple - Samsung rivalry will only heat up even further.