Thursday, September 15, 2011

The Smartphone Race a Hardware Battle? Samsung's Future

The Financial Times carried an interesting article today entitled "Samsung needs to hit reset button." .
It referred to the company's strength in hardware, notably memory chips, in which it invested  Won11,000bn last year.  Also, its bright and power-efficient Amoled (or active matrix organic light-emitting diode) mobile screens are increasingly the industry standard.
But the long term worry for Samsung is software, which is crucial to its increased focus on high-end consumer electronics such as smartphones and tablets. Falling prices for chips – which constituted about half of second-quarter operating profit – have pushed Samsung to prioritise its Galaxy devices, which are big challengers to Apple’s iPhone and iPad.
The article goes on to quote Chang Sea-jin, professor at Singapore National University who says Samsung was fortunate to produce such devices just as Google’s Android was becoming a standard operating system. He argues this reduced the smartphone race to a “hardware battle, where Samsung is strong”.
However, especially since Google's acquisition of Motorola, Korean government sources have expressed concerns about Samsung's weakness in software. Kim Young-Chan, an analyst at Shinhan Securities is quoted as saying that “Samsung cannot easily build up software in a short time and it is hard to expect major changes from Korean engineers with fixed ways of thinking,” said Mr Kim. “But Samsung will not be marginalised, given its strength in hardware.”

No comments:

Post a Comment