Samsung battles on two fronts as Apple readies iPhone 6

Research firm says iPhone 5s outsold Galaxy S5 in May
SEOUL - Samsung Electronics Co Ltd is losing smartphone ground not only to cheaper Chinese rivals but also at the high end to Apple Inc, a survey showed, in an ominous sign for the South Korean giant as Apple readies to launch its next-generation iPhone 6.

Samsung last week gave second-quarter earnings guidance that was far weaker than expectations and is on track for its worst quarterly profit in two years, a performance the company attributed in part to price competition and higher inventory levels in China.

Research firm Counterpoint's survey of 35 markets accounting for nearly 90 percent of global sales found that sales for the eight-month-old iPhone 5s stood at 7 million in May, compared with about 5 million for Samsung's flagship Galaxy S5, which was in just its second full month of sales after a late March release.

Counterpoint said that the Galaxy S5 appeared to be doing worse than the Galaxy S4 had done in its early launch against the iPhone 5, with each selling about 7 million units a month. The data measure retailers' sales to consumers as opposed to typical industry data that look at shipments made by the manufacturer.

Galaxy S5 sales probably remained at about 5 million units in June, said Tom Kang, Seoul-based analyst for Counterpoint. He said the Galaxy S5 fell short of market expectations in terms of display quality and by using a plastic case.

"They made one mistake, one product that didn't hold up to expectations and they are paying the price," he said in a phone interview. "They will have to move forward and leave behind what has failed and focus on the next product."

The data suggests that Samsung's problems run deeper than just the inventory buildup in mid-to-low tier devices that the company reported earlier in the month after disclosing weaker-than-expected second quarter guidance.

Samsung declined to comment on Counterpoint's data or disclose shipment figures for the Galaxy S5, though a Samsung executive in April said that the new flagship device was expected to outperform its predecessor.

"We will strengthen our product competitiveness by reinforcing our premium brand reputation, powerful product line-up, and cutting-edge technology," the company said in an email statement on Wednesday.

Data from research firm Canalys showed that Samsung's market share in the first quarter of 2014 fell to 18 percent from 20 percent a year earlier, while the likes of China's Xiaomi and Lenovo Group Ltd made gains.

Analysts said Samsung's new products such as the S5 did not offer enough to entice consumers to pay a premium over cheaper alternatives that were rapidly improving in quality.

"Most major smartphone brands worldwide are battling brand fatigue at the moment," said Strategy Analytics analyst Neil Mawston. "Consumers love their smartphones but almost all hardware, software and apps now look, feel or cost the same."

Apple, however, continues to be able to charge premium prices. Its iPhone 6 generation, expected to be launched as soon as September, is anticipated to sport bigger screens which would encroach on what has been a key Samsung advantage.

The Counterpoint data also suggest that Apple's smartphone sales have remained resilient even as anticipation for the new product launch builds. The U.S. company is expected to report its fiscal third-quarter results later this month.

SLOWING MARKET

Some slowdown for Samsung was expected following a record year of profits in 2013. Strategy Analytics forecasts global smartphone shipments growth this year to slow to 21 percent from 41 percent in 2013, while faster growth for cheaper smartphones was also expected to undermine margins.

Samsung's worse-than-anticipated operating profit guidance of 7.2 trillion won ($6.96 billion) for the April-June period caught analysts by surprise. Thomson Reuters I/B/E/S survey shows that 28 of 50 analysts polled have cut full-year profit forecasts for the company since the guidance was issued on July 8.

A worker at a South Korean carrier shop in central Seoul said sales of the iPhone 5s and the Galaxy S5 were roughly equal at his store, even though the Apple device had been on the market since October in South Korea.

"IPhone sales have been consistent and the differentiating factor for it is the design," said the worker, who only wanted to be identified by his surname Kim as he was not authorised to speak to the media. "There isn't much difference in the design of a Galaxy phone or an LG phone."

Some analysts said Samsung should bite the bullet and cut prices across the board, trading short-term margins for market share, while others say Samsung should look at more innovative change such as introducing flexible displays.

Counterpoint's Kang said Samsung may also need to consider adopting a new brand for its high-end products.

"The Galaxy brand has been weakened because it's selling $100, $200, $300 phones while Apple only sells $400 and above, so they might even need to throw away their Galaxy brand," he said.

source: www.abs-cbnnews.com

Samsung says Galaxy S5 enjoys brisk sales

SEOUL - Sales of Samsung Electronics' new flagship Galaxy S5 smartphone are outpacing that of its predecessor, the company's co-chief executive said, suggesting it may be regaining momentum in the multi-billion-dollar sector.

More than 11 million S5s have been shifted since its launch at the start of last month. That compares with about 10 million units of the S4 smartphones in the same amount of time last year, J.K. Shin, who also heads Samsung's mobile business, said in an interview with the Wall Street Journal.

Without providing specific figures, Shin said he thinks strong Galaxy S5 sales will lead to higher mobile profit margins and market share in the second quarter.

The firm last month reported a dip in operating profit for the first quarter as its smartphone unit sees falling demand in mature regions such as Europe and the United States while battling increasingly competitive emerging markets such as China.

"It's been a month since we began selling the S5, and out of the gate, sales are much stronger than the Galaxy S4," he said, citing good sales in the United States, Australia and Germany.

Samsung's mobile unit has been the driving force behind record profits in recent years, but it needs the S5 to perform well as a retort to doom-mongers who say it lacks a clear strategy to flourish in the saturated smartphone market.

Samsung made more than 30 percent of all smartphones sold in the world last year, nearly twice the share of its arch-rival Apple but it lost market share in January-March for the first time in four years, according to Strategy Analytics.

Its mobile-phone margins have also been under pressure as the company spent billions of dollars to advertise its devices overseas.

source: www.abs-cbnnews.com

Samsung Galaxy S5 makes global debut

SEOUL - The latest version of Samsung's flagship Galaxy smartphone went on sale worldwide Friday, days after the electronics giant announced it was facing a second consecutive quarter of profit decline.

The Galaxy S5 has a lot riding on it to steer the South Korean firm's profit-making machine back on track as growth in smartphone sales slows, with mature markets like North America and Europe near saturation.

Reviews of the S5 have mostly concluded that it is one of the best high-end smartphones on the market, but there is also a general consensus that it lacks the "wow" factor needed to differentiate it from its predecessors and competitors.

"It can swim, but it won't make any waves," was the verdict of the Wall Street Journal, referring to one innovation in the S5's waterproof covering.

"The Galaxy S5 is a good phone. It earns an unreserved recommendation," said the Washington Post.

"But the truth of the matter is that there's really nothing here that's worth breaking your contract to buy," it added.

Samsung's mobile unit has been the driving force behind the record profits of recent years, and it needs the S5 to perform well as a retort to doom-mongers who say the company lacks a clear strategy to flourish in an increasingly competitive, saturated market.

Samsung made more than 30 percent of all smartphones sold in the world last year, nearly twice the share of its arch-rival Apple.

But on Tuesday, the company estimated its first quarter operating profit at 8.4 trillion won ($7.96 billion), marking a second straight year-on-year decline.

As well as the constant challenge from Apple, Samsung has had to face the rapid expansion of smaller rivals like China's Huawei, which has pressured it into rolling out cheaper handsets to woo consumers in emerging markets, especially China.

 Falling smartphone prices

In a sign of the challenge the company faces, the S5 was priced lower at its commercial launch Friday than the previous S4 model.

Research firm IDC estimated the average selling price of smartphones will fall to $265 globally by 2017 from $337 in 2013 and $387 in 2012.

Samsung is believed to have reduced its marketing spend on the S5 and is also under pressure to set aside more cash for legal bills as years-long patent battles against Apple continue.

The two have locked horns in patent suits in several nations involving design and technologies on their smartphones and tablet computers.

A fresh patent trial opened in the United States last week, with Apple vowing to prove that Samsung flagrantly copied iPhone features and should pay more than $2 billion in damages.

Major handset makers have recently stepped up efforts to develop wearable devices, seen as a new source for growth -- though few have managed to garner large consumer excitement or sales.

Samsung's first Internet-enabled smartwatch, introduced last September, was greeted coldly by consumers who viewed it unfashionable. Its second edition, the Gear 2, was launched in February.

Apple is believed to be planning its own smartwatch launch soon, while Google is moving towards a wider consumer launch of its Internet-enabled eyewear Glass.

source: www.abs-cbnnews.com

Samsung unveils Galaxy S5 in Philippines

Launches freebies app, Gear 2 and Gear Fit

MANILA - South Korean tech giant Samsung on Thursday officially unveiled its latest flagship smartphone Galaxy S5 in the Philippines.

Samsung is releasing Galaxy S5 globally on April 11, although it will likely hit Philippine stores later this month.

 Coco Domingo, marketing head for mobile phones for Samsung Philippines, revealed that the 16GB model of the Galaxy S5 will be available, at the latest, the third week of April with a starting retail price of P34,990.

It will be available in four colors -- black, white, blue and gold.

"Basically, the features of the [Galaxy] S5 enhance what users use the most," said Domingo, noting the phone's better camera, the heart monitor and a "bigger" battery.

The new Samsung phone boasts a 2.5GHz Quad core application processor, a slightly better version of the 1.9GHz model of the S4, and now runs on Android KitKat 4.4.2.

It has the same screen resolution as that of its predecessor, albeit a tenth of an inch larger. The Galaxy S5 is heavier and thicker than previous models but is now IP 67 certified, meaning it can survive in 3 feet of water for up to 30 minutes and is completely resistant to dust.

 

It comes with a finger scanner that acts as a screen-lock password, which can save and identify up to three different fingerprints, and a heart monitor.

The Galaxy S5 also has a power saving mode, which turns the screen to black and white and allows the smartphone to perform customizable basic functions -- messaging and calling -- for nearly two weeks on a single charge.

But perhaps, the most notable improvements on the Galaxy S5 can be found in its camera and in the addition of the download booster. The former, a rear facing 16 megapixel camera, boasts the fastest auto-focus of 0.03 seconds, a real-time HDR mode, and a DSLR-like selective focus function. It also now has the capability to take 4k (3849 x 2160) video.

The download booster allows the simultaneous use of LTE and Wi-Fi for faster download speeds, maximizing the MIMO technology support added.

Other updates for the Galaxy S5 includes support for the USB 3.0, a patterned design, and wireless charging.

To coincide with the launch of the Galaxy S5, Samsung also announced the availability of fitness-oriented wearables Gear 2 (P13,490) and the Gear Fit (P8,990)

Samsung also launched the Galaxy Life, a free-to-download application which provides exclusive privileges, discounts to partner establishments such as Yabu, Charles & Keith, and Bikram Yoga.

source: www.abs-cbnnews.com

Why South Korea telcos released Samsung Galaxy S5 early

SEOUL - Samsung voiced annoyance Thursday after South Korean telecoms operators released its latest smartphone ahead of schedule in order to dodge sales restrictions imposed by regulators.

The world's biggest mobile phone maker had planned to release the Galaxy S5 -- first unveiled in February -- globally on April 11.

But the South's top operator SK Telecom, along with smaller rivals KT and LG Uplus, started selling the phone on Thursday.

Seoul's telecoms regulators have suspended all three firms from signing up new customers for 45-day periods each -- ranging from March to May -- as a penalty for offering illegal discounts.

SK Telecom's business suspension begins April 5 -- before Samsung's planned Galaxy S5 launch date -- and continues until May 19.

Samsung said in a statement that the earlier-than-scheduled release was made "independently" without its consent.

"We express our regret at this decision and we are working to verify all the facts," it said, adding it would stick to the April 11 release date for the rest of the world.

SK Telecom said the early release was motivated by a desire to "meet customer needs more quickly". It declined to elaborate further.

Samsung is hoping the Galaxy S5 will cement its lead in the global smartphone market.

The South Korean giant made about 30 percent of all smartphones sold in the world last year, nearly twice the share of arch-rival Apple.

The Galaxy S5 boasts a range of new features including a fingerprint scanner and a built-in heart rate sensor.

But Samsung faces a daunting challenge to keep momentum in the increasingly competitive and saturated market.

Competition is fierce in South Korea's vibrant mobile market, where the number of subscribers exceeds the country's total population of 50 million as many use several handsets.

Nearly 70 percent of the subscribers use smartphones -- one of the highest penetration rates in the world.

source: www.abs-cbnnews.com

Globe, Smart unveil Samsung Galaxy S5 postpaid plans

MANILA, Philippines – Telecommunication firms Globe Telecom and Smart Communications Inc. have unveiled postpaid plan offerings for the Samsung Galaxy S5, ahead of its nationwide release on April 11.

Globe postpaid subscribers can avail of the Galaxy S5 at Plan 999 with P700 monthly cashout over a 24-month contract period for as low as P1,699 monthly.

Globe customers will receive 5GB worth of consumable mobile internet surfing monthly as well as free calls and texts to all networks with the postpaid plan bundle.

The Galaxy S5 is also available to Globe users for as low as P1,799 monthly at Plan 1299 with P500 monthly cashout for a 24-month contract period, complete with 5GB monthly consumable mobile surfing plus 25 minutes of calls and 500 texts to all networks.

Customers of this plan also get one-month free Gadget Care and free access to Facebook until April 25.

Globe customers will be allowed to buy apps from the Samsung App Store and do in-app purchases, where amount will be charged to bill for postpaid customers and will be deducted from the prepaid load of prepaid customers.

Smart users, on the other hand, can get the Galaxy S5 for free with the UnliSurf Plan 2000, which comes with unlimited mobile LTE surfing, 150 minutes of calls and 200 of texts to all networks under a 30-month contract.

The Galaxy S5 can also be availed for P1,799 a month under Smart’s UnliSurf Plan 999, with P800 monthly handset cash-out for 24 months, complete with unlimited surfing for one month plus calls and texts.

Smart is also offering deals to subscribers who pre-registered and subscribed to a Galaxy S5 plan, including free one-month unlimited music streaming plus a SPINNR VIP subscription and a chance to win one of 10 Samsung Galaxy Gear devices to be raffled off on April 11.

The first 200 Smart users who will subscribe to a Samsung Galaxy S5 plan on the first day of availability will also be entitled to Smart Gadget Shield, a one-year free handset insurance which covers repair and replacement of the device in case of accidental damage or loss due to theft or robbery.

Smart has also launched its Infinity program, which provides free devices, including a 32-inch Samsung Smart TV, depending on the plan.

Among the features of the Samsung Galaxy S5 are a 5.1-inch Full-HD Super AMOLED display, a 16-megapixel camera with HDR (Rich tone), selective focus and virtual tour shot, fingerprint sensor, and an S Health and Heart Rate sensor.

The Galaxy S5 is IP67-certified dust and water resistant, has a 2.5 GHz quad-core application processor, runs on LTE Category 4, has a 2800 mAh battery with 21 hours of talk time, and has an internal user memory of 16GB and a card slot microSD of up to 128GB.

Samsung launched the Galaxy S5 last February.

source: www.abs-cbnnews.com

When will Samsung unveil Galaxy S5 smartphone?

SEOUL - Samsung Electronics Co will unveil a new version of its flagship Galaxy S smartphone this month, but expectations are low that features such as a bigger screen will lead to a sharp jump in sales given intensifying competition.

Samsung sent out invitations on Tuesday for "Samsung unPacked 5" event on Feb. 24 at the Mobile World Congress in Barcelona. The launch has been brought forward by around three weeks after sales of Samsung's S4 came in weaker than expected, analysts said.

The world's biggest smartphone maker is bracing for its weakest mobile annual profit growth in seven years amid fierce competition from Apple Inc and Chinese vendors, and as growth for high-end smartphones eases due to near saturation in many markets.

The S5 is widely expected to feature a bigger screen, an improved rear camera and biometric functions such as iris recognition or a fingerprint scanner. It may also come with an improved Galaxy Gear smartwatch.

The launch at the annual industry gathering is set to reflect a new emphasis on costs, marking a departure from the glitzy marketing Samsung has deployed in the past, including the use of actors and a full live orchestra to launch the S4 at New York's Radio City Music Hall last year.

A bigger screen for the S5 may not become much of a selling point as Apple is widely expected to introduce large-screen smartphones - Samsung's mainstay products - later this year. Apple is also expected to gain ground in China after it began selling iPhones through China Mobile, the world's biggest mobile carrier by subscribers, last month.

More challenges may come from China's PC maker Lenovo Group which announced last week it would buy Google Inc's Motorola Mobility handset unit for $2.9 billion.

source: www.abs-cbnnews.com