Samsung's Secret iPhone 5 Killer?

Samsung is reportedly working on another smartphone that is due for release before the end of the year.Unlike the Galaxy S III and Galaxy Note II, this device is expected to scale things down to a smaller size. In fact, the mysterious smartphone is currently being referred to as a Galaxy S III Mini.According to TechRadar, the device will feature a four-inch screen -- the same as Apple's (NASDAQ: AAPL) iPhone 5. Aside from the smaller display, Samsung is also expected to add a five-megapixel camera and a lower-powered processor. If true, those elements could keep it from competing successfully against the iPhone 5.However, the Galaxy S III Mini is also expected to feature a significantly lower price than the iPhone 5. It is also likely to greatly undercut the price of the existing Galaxy S III. This could give Samsung an advantage at retail, if only among price-conscious consumers.To beat Apple, the company will ultimately need to build a device that is a bit more powerful and unique. If it were to add a few special features -- just as Nokia (NYSE: NOK) did when it built the Lumia 920 -- Samsung might be able to use a cheaper and smaller Galaxy S III to steal a few iPhone customers.Even then, Samsung would be faced with a serious challenge. The company may be able to sell more phones than Apple by offering a wide variety of Android and Windows Phone models, but on an individual basis, the iPhone reigns supreme.This is partially due to the fact that Apple has always stuck to one SKU. While consumers can still purchase the older iPhones, there is technically only one iPhone 5. Collectively, they are still part of the same line of smartphones.If Samsung releases a miniature Galaxy S III this year, it would be only months before the company is expected to ship the Galaxy S IV, the next evolution in the company's flagship line of devices.Follow me @LouisBedigianBZ