Samsung is about to unveil new smartphone to nibble Qualcomm and sharp customers

Samsung will unveil its new smartphone this weekend, according to a Bloomberg website, with concerns about Samsung's ability to lure Apple users into defections. But the real question may be whether Samsung phones can nibble on Qualcomm and Sharp's customers.

The Galaxy S smartphone is designed to show the world that Samsung can produce state-of-the-art chips, displays, and smartphones. Samsung is using its own application processor to replace Qualcomm's chips and using its own multiple-side display on smartphones, and other manufacturers are not able to produce multiple-side displays. The goal is to seek more customers for these products, despite the erosion of Samsung's mobile phone business.

After 4 years of dominance of the smartphone industry, Samsung is at risk of losing its market leader. In the fourth quarter of last year, Samsung's smartphone sales fell to a level similar to that of Apple, which saw its profits fall by three consecutive declines. Samsung has spent more than 21 billion dollars this year on capital spending, aiming to get more revenue from its rivals ' sales of 1 billion handsets.

"This is a great opportunity to attract more customers," said Tom Kang, head of research at Counterpoint Marvell Harsh, a marketing research firm. If S6 sells well, many other handset makers will mimic S6 and configure Samsung chips and curved screens for mobile phones. ”

Samsung wants to occupy a higher share of the 51 billion-dollar mobile apps processor and display market. Strategy Analytics, a market research firm, showed that Qualcomm accounted for more than half of the 21 billion-dollar application processor market last year.

Qualcomm and Apple

Samsung plans to release two Galaxy S6 smartphones at the World Mobile Communications Conference in Sunday, including one with three side screens, people familiar with the matter said.

The two-model Galaxy S6 is designed with a all-metal fuselage and is equipped with Samsung's own rather than Gaotong-long series, the person said.

Samsung also hinted that the Galaxy S6 would be equipped with wireless charging technology. Samsung Mobile's chief engineer, Seho Park, predicts that future models of Galaxy "will enable users to access the wireless world they never had before."

These new features are crucial to helping Samsung stand out from the handset market.

Another Android manufacturer

The iphone and ipad revenues were $60.2 billion in the 3 months ending December 27 last year, according to Bloomberg data, with Samsung mobile revenue at $22.9 billion trillion in the third quarter ending September 30.

"Samsung has degenerated into ' one of Android ' and Samsung smartphones are becoming less attractive to consumers," said Yoo Eui Hyung, an investment firm Dongbu Securities analyst. S6 's performance will be the main selling point of Samsung mobile device components. ”

Samsung's profits hit new highs in 2011 as the global smartphone industry hegemon, and the chip division is now Samsung's biggest profit contributor. The chip division is Samsung's own mobile phone, as well as Apple and Sony's handset supply chip.

In the fourth quarter of last year, Samsung chip division operating profit growth of 36% to 2.7 trillion won, mobile phone business unit operating profit fell 64% to 1.96 trillion won.

"Our strategy for providing the best user experience to our users by using our own first-class components has not changed," Samsung said in an e-mail. Samsung did not comment on its new phone.

Samsung spokesmen declined to comment.

Faster processors

Samsung is investing 14 billion of billions of dollars to build a chip factory near Seoul, hoping that growing demand for chips will justify the investment. Samsung says the plant will produce processors that are faster and less energy-efficient than Qualcomm products.

Samsung vice chairman Lee Jae Yong said that, following last year's loss of 700 billion won, the company's processor business this year operating profit will reach 1.4 trillion won.

"Historically Qualcomm's mobile chips were the best," said Bill Kreher, investment firm Edward Jones & Co analyst. This is the first sign of a crack in this traditional view. ”

Samsung's capital spending last year was 23.4 trillion won, with a display panel business of 4 trillion won, which is expected to grow this year.

Competitors and customers

"It's a good time for Samsung to get new customers and reduce its reliance on Galaxy handsets," said Lee Min Hee, an investment firm I ' M Securities analyst. If a new generation of galaxy is hot, Chinese handset makers will soon launch Shanzhai products. ”

Part of the challenge for Samsung is that Qualcomm is both a customer and a supplier. Samsung manufactures 骁丽 long chips for Qualcomm and uses 骁丽 in its products.

Samsung is the second-largest customer in Qualcomm, accounting for about 12% of the latter's sales, according to Bloomberg data. "Qualcomm is in trouble," Yoo said. It is now the perfect opportunity for Samsung to subvert the mobile-phone chip industry by S6. ”

Flexible display

A smartphone with a three-sided display could attract more customers to Samsung's display panel business. Customers currently sourcing Samsung OLED displays include Nokia, Motorola and Huawei. Apple display providers include sharp, LG display and Japan Display.

Samsung is the first company to launch the configuration of a side-screen handset, last year launched the Galaxy Note Edge fuselage on the right side of the display. Samsung is not currently selling side displays to other manufacturers.

"The new Galaxy smartphone is not directed at Apple, but is directed at Qualcomm and Millet," said Ko Jung Woo, an investment company BS Securities analyst. S6 will become a new generation of smart phone components technology trend of the benchmark. ”