Wednesday, June 23, 2010

Samsung Electronics Aims to Double Its Smartphone Share in Fourth Quarter


Samsung Electronics Co., the world’s second-largest mobile-phone maker, aims to more than double its share of the smartphone market, helped by the introduction of its Galaxy S model.

Samsung intends to raise its market share for smartphones to more than 10 percent in the fourth quarter from its current level of less than 5 percent, Lee Donjoo, senior vice president of company’s Mobile Communications Division, said in an interview in Seoul yesterday.

A 10 percent market share may lift Samsung’s ranking among smartphone makers to fourth from fifth, surpassing Taoyuan, Taiwan-based HTC Corp., which had a 7 percent share in the fourth quarter of 2009 according to an April 20 CLSA Ltd. report. Nokia Oyj, the largest smartphone maker has a 40 percent share. Global sales of smartphones will rise 36 percent to 247 million handsets in 2010, research firm ISuppli Corp. said in April.

“Samsung may easily meet the target as the handset market is sharply transferring to smartphones and the hardware features of the Galaxy S are pretty competitive in the market,” said Lee Sun Tae, a senior analyst at Meritz Securities Co. Ltd. in Seoul.

Samsung is now “more optimistic” about its 2010 smartphone battery sales, which may exceed initial targets, Lee said. “The market response to the Galaxy S from Europe is good,” he said, without elaborating.

Shipment Target

The Galaxy S, which runs on Google Inc.’s Android operating system, went on sale last week in some European countries. The phone has a 4-inch display screen, bigger than the iPhone’s 3.5- inch screen, as well as an e-book reader, a 5-megapixel camera, a high-definition video recorder and player, and a top of the line cell phone battery, according to the company’s website. About 110 mobile operators around the world will offer the phone, Lee said.

Samsung, which shipped 227 million mobile phones and mobile phone batteries in 2009, said Feb. 4 it aims to triple shipments of smartphones this year from 6 million, without providing specific figures.

Suwon, South Korea-based Samsung dropped 1.8 percent to 815,000 won as of 10:12 a.m. Seoul time. The benchmark Kospi index fell 0.7 percent.

Samsung plans to offer a tablet computer, to be called the Galaxy Tab, in the third quarter, Lee said, without giving details of the operating system or laptop battery type.