Samsung Electronics Co.
on Thursday showed off an array of new devices with wide appeal,
including a cheaper version of its flagship smartphone and two new
tablets, in its bid to gain more market share in the highly competitive
mobile-devices market.The product launches come amid mounting concerns
that sales of the company’s flagship Galaxy S4 smartphone may not be as
strong as estimated.
Shares in Samsung, South Korea’s biggest company by market capitalization, have fallen sharply over the past two weeks, wiping out more than $27 billion off its market value.
The decline in its stock price is reminiscent of the fall in rival Apple Inc. shares earlier this year that was sparked by concerns over demand for its latest iPhone 5.
Morgan Stanley earlier this month cut Samsung’s forecast for Galaxy S4 shipments to 61 million units this year from 71 million, noting a recent decline in component orders for the phone indicates a “normal, not super,” global rollout.
The brokerage estimates 310 million smartphone shipments for 2013, compared with an estimated 213 million units shipped in 2012, according to Strategy Analytics. Samsung doesn’t disclose sales targets for its smartphones or provide a breakdown of mobile-phone sales.
On Thursday, Samsung touted the Galaxy S4 Mini, a stripped down version of its high-end flagship smartphone, in hopes it will grab more consumers especially in emerging markets. Samsung didn’t disclose how much the Galaxy S4 Mini would cost or when it would be available.
In May, Samsung said it had shipped more than 10 million Galaxy S4s since the smartphone hit markets in late April. The company hasn’t provided sales-figure updates since then.
As smartphone prices continue to decline amid stiff competition and as manufacturers roll out cheaper smartphones, some analysts said Samsung’s ability to deliver a wide portfolio of products across various price points is its survival strategy.
Unlike Apple, which has only one line of smartphones, Samsung has been introducing hand-held and mobile devices in various sizes. But it remains to be seen whether there will be demand for all of the Samsung products.
At Thursday’s event, held at a cavernous exhibition hall in London, executives rattled off statistics for a bewildering array of products—some new, some previously announced—ranging from phones and tablets to laptops and cameras.
Samsung appeared to be touting phones for every niche: large ones, small ones, those with zoom lenses, another that is dust and water-resistant, even a pink phone.
“It’s an ‘all things to all people’ strategy, covering every possible product size and type possible to capture as many customers as possible,” says Mark Newman, a senior analyst with Sanford C. Bernstein.
While Samsung is the largest smartphone maker, it still trails Apple in tablets.
Apple had a 39.6% share in tablets in the first quarter, with 19.5 million units shipped, while Samsung was No. 2 with a 17.9% share, according market-research firm IDC.
Gaining market share with tablets running on Windows may be difficult as well, as Microsoft Corp.’s latest Windows 8 operating system has so far failed to make much headway.
Last year, Samsung unveiled its ATIV line of Windows-based tablets but it hasn’t yet received wide acceptance by consumers.
On Thursday, Samsung refreshed the product line by launching a 10.1-inch device called ATIV Tab 3 that is billed as “the world’s thinnest Windows 8 tablet” at 8.2 millimeters thick. It also launched a 13.3-inch tablet called ATIV Q that can run both Windows and Google Inc.’s Android software.
Samsung’s Mobile Chief J.K. Shin said in an interview in March that smartphones and tablets based on Microsoft’s Windows operating system aren’t selling very well, adding that there is a preference in the market for Android.
Along with the tablets and smartphones, Samsung introduced an upgraded version of its Web-connected camera called the Galaxy NX that comes with an interchangeable lens.
The company is betting on the convergence of smartphones and cameras to grab more market share in the digital-camera industry, which remains a weakness for the company.
Shares in Samsung, South Korea’s biggest company by market capitalization, have fallen sharply over the past two weeks, wiping out more than $27 billion off its market value.
The decline in its stock price is reminiscent of the fall in rival Apple Inc. shares earlier this year that was sparked by concerns over demand for its latest iPhone 5.
Morgan Stanley earlier this month cut Samsung’s forecast for Galaxy S4 shipments to 61 million units this year from 71 million, noting a recent decline in component orders for the phone indicates a “normal, not super,” global rollout.
The brokerage estimates 310 million smartphone shipments for 2013, compared with an estimated 213 million units shipped in 2012, according to Strategy Analytics. Samsung doesn’t disclose sales targets for its smartphones or provide a breakdown of mobile-phone sales.
On Thursday, Samsung touted the Galaxy S4 Mini, a stripped down version of its high-end flagship smartphone, in hopes it will grab more consumers especially in emerging markets. Samsung didn’t disclose how much the Galaxy S4 Mini would cost or when it would be available.
In May, Samsung said it had shipped more than 10 million Galaxy S4s since the smartphone hit markets in late April. The company hasn’t provided sales-figure updates since then.
As smartphone prices continue to decline amid stiff competition and as manufacturers roll out cheaper smartphones, some analysts said Samsung’s ability to deliver a wide portfolio of products across various price points is its survival strategy.
Unlike Apple, which has only one line of smartphones, Samsung has been introducing hand-held and mobile devices in various sizes. But it remains to be seen whether there will be demand for all of the Samsung products.
At Thursday’s event, held at a cavernous exhibition hall in London, executives rattled off statistics for a bewildering array of products—some new, some previously announced—ranging from phones and tablets to laptops and cameras.
Samsung appeared to be touting phones for every niche: large ones, small ones, those with zoom lenses, another that is dust and water-resistant, even a pink phone.
“It’s an ‘all things to all people’ strategy, covering every possible product size and type possible to capture as many customers as possible,” says Mark Newman, a senior analyst with Sanford C. Bernstein.
While Samsung is the largest smartphone maker, it still trails Apple in tablets.
Apple had a 39.6% share in tablets in the first quarter, with 19.5 million units shipped, while Samsung was No. 2 with a 17.9% share, according market-research firm IDC.
Gaining market share with tablets running on Windows may be difficult as well, as Microsoft Corp.’s latest Windows 8 operating system has so far failed to make much headway.
Last year, Samsung unveiled its ATIV line of Windows-based tablets but it hasn’t yet received wide acceptance by consumers.
On Thursday, Samsung refreshed the product line by launching a 10.1-inch device called ATIV Tab 3 that is billed as “the world’s thinnest Windows 8 tablet” at 8.2 millimeters thick. It also launched a 13.3-inch tablet called ATIV Q that can run both Windows and Google Inc.’s Android software.
Samsung’s Mobile Chief J.K. Shin said in an interview in March that smartphones and tablets based on Microsoft’s Windows operating system aren’t selling very well, adding that there is a preference in the market for Android.
Along with the tablets and smartphones, Samsung introduced an upgraded version of its Web-connected camera called the Galaxy NX that comes with an interchangeable lens.
The company is betting on the convergence of smartphones and cameras to grab more market share in the digital-camera industry, which remains a weakness for the company.
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