Samsung Electronics (OTC: SSNLF.PK) recently introduced a 4.8-inch screen on its Galaxy S III, half-an-inch larger than the 4.3-inch screen on the company’s existing Galaxy S II model. The new device is scheduled to launch in the US this summer.

The larger iPhone screens are being manufactured by several suppliers, including LG Display Co. Ltd. (NYSE: LPL), Sharp Corp. (OTC: SHCAY.PK), and Japan Display Inc.

Apple is reported to be considered making a smaller version of its iPad tablet as well. Like the iPhone, the tablet’s screen size has remained unchanged since the iPad’s introduction. Other tablets, including the Kindle Fire family from Amazon.com Inc. (NASDAQ: AMZN) and the Nook from Barnes & Noble Inc. (NYSE: BKS) have had success with smaller screens.

Apple and Samsung currently account for more than 50% of all smartphones sold, and Apple’s iPad really has no serious competition yet in the tablet market. The issue for Apple is whether or not it wants to get out in front of the mobile device market with a new product that raises the bar for everyone else. A “me-too” smartphone with a larger screen or a similar shrinking of the iPad screen is not the sort of change a leader makes. Especially when the evidence (i.e., sales) indicates that consumers can’t get enough of the products you already have.

Apple’s strength has always been to build a product that none of us knew we wanted because we don’t have the vision. Anybody can make screens bigger or smaller. Apple should be doing something else. Like building a cheaper phone that would appeal to the half of the world that can’t afford to buy the current iPhone.

Paul Ausick

Several large pharma firms are in the early stages of an attempt to find new and more effective cholesterol drugs. (Reuters)

The Swiss franc begins to fall. (Reuters)

Amazon (NASDAQ: AMZN) may ship 3.5 million Kindles in the fourth quarter, says industry research firm. (Reuters)

Hewlett-Packard (NYSE: HPQ) to spin off its PC unit. (Reuters)

Zynga’s IPO is delayed. (Reuters)

Alan Krueger, new head of the White House Council of Economic Advisers, to press for more efforts to help create jobs. (Reuters)

General Motors (NYSE: GM) to launch a new Chevy Malibu, an attempt at a higher-mileage car. (WSJ)

Larry Page, Google’s (NASDAQ: GOOG) new CEO, has trouble as he looks for new direction for the company. (WSJ)

Bank of America (NYSE: BAC) sells half of its stake in China Construction Bank  for $8 billion. (WSJ)

Consumer spending rises more than expected in July. (WSJ)

A consumer group wants the FDA to press generic firms to disclose more dangers about drugs. (WSJ)

LG Display (NYSE: LPL) to cut its capex investment. (WSJ)

The European Central Bank may reconsider its stand on inflation and keep rates low. (WSJ)

The price of damages from Irene may hit $12 billion. (WSJ)

China once again tightens rules on bank loans. (WSJ)

Italy may expand the cuts in its austerity package. (WSJ)

The government in Brazil to lower spending and press for lower bank interest rates to bring down inflation. (WSJ)

UAW members press their president to get them a better deal with the Big Three. (WSJ)

Macarthur Coal  probably will accept a higher $5.12 buyout offer from Peabody Energy (NYSE: BTU) and ArcelorMittal. (WSJ)

Truck makers Volvo and Scania to prepare aggressively for another economic slowdown. (WSJ)

The largest car company in China, SAIC Motor, shows a sharp rise in profits. (WSJ)

CME Group (NASDAQ: CME) to postpone the trading of yuan futures. (WSJ)

Alpha Bank and Eurobank, two large Greek banks, to merge. (NYT)

The UAW wants Detroit to raise entry level pay. (NYT)

The IASB takes a dim view of how banks handled accounting for renegotiated Greek debt. (FT)

The confidence index of UK companies drops sharply. (Bloomberg)

India’s economy grows more than expected. (Bloomberg)

Douglas A. McIntyre

Samsung to delay its tablet launch in the U.S. because of IP lawsuits from Apple (NASDAQ: AAPL). (Reuters)

Google (NASDAQ: GOOG) says its partners for Google TV will rise. (Reuters)

Commercial real estate loans owned by Anglo Irish Bank sold to JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC) and Loan Star for $9.5 billion. (Reuters)

Central bankers still concerned that policy making in most nations is unlikely to help address deficit and stimulus problems. (WSJ)

Corporate earnings could slow as the economy falters and spending drops. (WSJ)

Venture-capital firm Kleiner Perkins Caufield & Byers has trouble investing in Web 2.0 companies after its great success in Web 1.0. (WSJ)

China’s central bank to ask financial firms to increase reserves. (WSJ)

Super bugs begin to attack Monsanto’s (NYSE: MON) genetically modified corn. (WSJ)

Walmart (NYSE: WMT) is successful in its digital download business. (WSJ)

A study from Georgetown University’s McDonough School of Business shows that managers play favorites among employees but not based strictly on performance. (WSJ)

Same-store sales for retailers with big back-to-school inventories are expected to be 4.8% but will come at the price of sharp discounts. (WSJ)

A drug from Bristol-Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) shows success in preventing stokes. (WSJ)

U.S. supports pipeline extension by TransCanada (NYSE: TRP). (WSJ)

Biotech IPOs getting more market support. (WSJ)

Losses from Hurricane Irene may hit $7 billion, another challenge to insurer earnings. (NYT)

Finland policies could undermine efforts to bail out Greece. (NYT)

The U.S. posts a trade surplus in solar power. (NYT)

General Electric (NYSE: GE) to produce short films about innovation. (NYT)

Caterpillar (NYSE: CAT) says U.S. policy destroys prospects for big business. (FT)

Profits from China oil firms allow them another large push to gain overseas assets. (FT)

The government cut forecasts for the size of the U.S. corn crop. (FT)

AT&T (NYSE: T) and T-Mobile to invest $100 million in a venture to challenge Google in the portable payment system business. (Bloomberg)

Douglas A. McIntyre

Abercrombie & Fitch (ANF) Started as Buy at Brean Murray.
American Electric (AEP) Raised to Buy at KeyBanc Capital.
Bucyrus (BUCY) Raised to Neutral at JPMorgan.
Extra Space Storage (EXR) Raised to Buy at Citigroup.
Infineon (IFX) Raised to Buy at UBS.
Joy Global (JOYG) Raised to Neutral at JPMorgan.
LG Display (LPL) Started as Buy at Collins Stewart.
Time Warner Cable (TWC) Raised to Buy at Collins Stewart.
United Therapeutics (UTHR) Started as Buy at Lazard Capital Markets.
Wynn Resorts (WYNN) Raised to Buy at UBS.

JON C. OGG