Samsung drops from list of top 5 smartphone-makers in China

THE INVESTOR] Samsung Electronics has failed to make it to the list of top five smartphone-makers in China, despite having the largest global market share, falling behind local rivals and Apple.

According to Strategic Analytics, a market research firm, Chinese handset makers, including Huawei, Oppo, Vivo and Xiaomi, were the top sellers in the April-June period.

Samsung Galaxy S7.

Huawei, China’s largest handset maker, topped the list with 19.1 million unit sales or 17.5 percent market share, followed by budget phone maker Oppo whose phone sales almost doubled to 15.2 million units during the same period.

Oppo’s market share stood at 13.9 percent. In June alone, the company topped the Chinese smartphone market with 22.9 percent market share, according to a separate report by CounterPoint.

Vivo, another Chinese budget phone maker, outpaced Xiaomi for the first time in terms of sales, selling 113 million phones with 11.9 percent market share. Xiaomi, affectionately called “China’s Apple,” suffered a 34 percent decline in sales with 11.7 percent market share.

Apple was ranked fifth, with its market share falling from 9.2 percent to 6.7 percent over the past one year.

The research firm didn’t reveal the names falling out of the top five handset makers. Samsung whose ranking fell to the sixth last year is believed to have retained its position during the cited period.

Despite the upbeat sales of its flagship Galaxy S7 and its Edge variant globally, Samsung has yet to find a breakthrough in the all-important Chinese market. Its market share last year was 7.7 percent there.

By Lee Ji-yoon (jylee@heraldcorp.com)

'V20 not enough for LG Electronics' turnaround'

THE INVESTOR]  LG Electronics' clout in the global smartphone market is steadily declining on the back of cut-throat competition in the sector.

And the Korean firm’s bet on its next high-end smartphone, the V20, which succeeds the V10, is not expected to bring about a dramatic turnaround, according to industry watchers. 

LG V10 phablet. Its successor, tentatively called V20, is expected to come out in September. LG Electronics

"LG’s upcoming new high-end smartphone will not be able to offset the sluggish sales of the G5 handsets," said Park Kang-ho, an analyst from Daishin Securities.

The South Korean tech firm’s smartphone sales in the April-June period fell 1 percent on-year to 13.9 million units, comparing with the 77.6 million shipments of Samsung Electronics.

On the global front, Chinese smartphone-makers are fast on LG’s heels, and they have long pushed the firm out from the list of the world’s top five smartphone-makers.

Samsung and Apple maintained the top two slots, respectively, in terms of shipment in the second quarter, followed by Huawei, which shipped 320 million units. Oppo and Xiaomi switched places, with the former up at fourth place, while the latter slid to fifth. 

Amid the reshuffling, LG Electronics’ mobile business has been in the red for the fourth consecutive quarter when it logged 153.5 billion won of operating loss in the April-June period. In sharp comparison, Samsung raked in 4.3 trillion won of operating profit.

LG has so far conceded the failure of its latest flagship G5 smartphone, and vowed to make "utmost efforts to make its mobile business return to the black."

By Kim Young-won (wone0102@heraldcorp.com)

혁신 멈춘 애플..2분기 연속 마이너스 성장 [핫이슈] 저무는 애플 저력의 삼성, 값싸고 질 좋은 중국산 공습에 '아이폰6S' 전작과 차별화 실패, 매출 14.6%, 순이익 27% 뚝.. WSJ "아이폰 출시 후 첫 장기침체"

2007년 아이폰 출시 이후 처음 겪는 장기 침체.’

애플이 두 분기 연속 마이너스 성장을 기록하자 월스트리트저널(WSJ)은 이 같은 평가를 내렸다. ‘값싸고 질 좋은’ 중국산 스마트폰의 도전이 거세지면서 경쟁은 치열해지는데 최근 출시한 스마트폰에서 뚜렷한 변화를 보여주지 못하면서 애플의 상징과도 같았던 ‘혁신’이 멈췄다는 지적이 나오고 있다.

애플은 26일(현지시간) 회계연도 3·4분기(3월27일~6월25일) 총 매출이 전년 동기 대비 14.6% 감소한 424억3,600만달러(약 48조2,000억원)로 집계됐다고 발표했다. 순익도 77억9,600만달러로 같은 기간 27.0%나 쪼그라들었다.


실적 악화에 가장 큰 요인으로 작용한 것은 전체 매출의 3분의2를 차지하는 아이폰 판매 부진이다. 아이폰 판매량은 4,040만대로 전년 동기 대비 15%나 줄었다. 지난 3월 출시했던 아이폰의 저가형 모델 아이폰SE가 지난 분기 900만대나 출하되며 매출 감소를 방어했지만 부진을 완전히 만회하기는 역부족이었다. 오히려 아이폰SE 판매 비중이 높아지면서 애플의 고가 상품에 대한 수요를 잠식했다는 분석이 나온다. 실제로 아이폰 시리즈의 평균 판매 가격은 아이폰SE가 출시되기 전인 지난해와 비교해 67달러나 낮아졌다.

WSJ는 애플의 혁신이 사라진 것이 아니냐는 우려를 표했다. 지난해 애플이 아이폰6s를 출시했을 때 전작과 비교해 기능과 디자인에서 차별화 요소가 거의 없다는 혹평이 쏟아졌다. 이번 아이폰SE의 경우 크기를 4인치로 줄이고 출고가를 600달러대에서 399달러로 내려 애초 새로운 기능 도입과는 거리가 먼 제품이었다. 오는 9월 출시 예정인 아이폰7에도 ‘혁신적인 기능’은 없을 것이라는 비관적인 전망도 제기된다.

중국산 저가형 스마트폰이 쏟아져 나오면서 애플이 설 자리는 점점 좁아지고 있다. 중국 화웨이는 올해 상반기 동안 전년 동기 대비 25%나 증가한 6,060만개의 스마트폰을 출하했으며 오포·비보도 지난 1·4분기 출하량을 각각 15%, 8%나 늘리는 등 경쟁이 치열해지고 있다. 블룸버그통신은 중국 스마트폰이 성능적인 면에서도 아이폰과 비교해 뒤떨어지지 않아 애플이 중국 시장에 대한 영향력을 늘리는 데 걸림돌이 되고 있다고 보도했다. 실제로 홍콩·대만을 포함한 중화권 시장에서 애플의 매출은 같은 분기 전년 동기 대비 33%나 쪼그라들었으며 지난 1·4분기 시장 점유율도 3위에서 5위로 추락했다.

애플이 이번 실적 악화를 하드웨어에 치중된 수익 구조를 플랫폼 중심으로 바꾸는 ‘뉴 노멀’로 삼아야 한다는 지적이 나온다. 애플은 음악 스트리밍 서비스 ‘애플 뮤직’, 원격 결제 서비스 ‘애플 페이’ 등 기존에 판매했던 아이폰에 서비스를 추가하는 전략을 꾀하고 있다. 실제로 애플의 3·4분기 서비스 분야 매출은 전년 동기 대비 19% 성장한 59억8,000만달러를 기록했다.

/변재현기자 humbleness@sedaily.com

OLED shipments for smartphones to double by 2017: IHS

Shipments of organic light-emitting diode displays for smartphones are expected to almost double from last year’s 250 million units to 450 million units in 2017, market research firm IHS predicted. 

Currently, about 97 percent of the market is dominated by Samsung Display, the display-making unit of Samsung Electronics. 

IHS said this year’s shipments could surge 42.7 percent to 366.9 million panels compared to a year ago. 

Samsung Galaxy S7. The Korean tech giant is increasingly adopting OLED display for its premium and budget smartphones.

Samsung has extended the OLED adoption for its smartphones ranging from its flagship S series to cheaper budget phones, while its archrival Apple has long been depending on liquid-crystal display. 

But more recently Chinese handset makers are increasingly adopting OLED display. Among other things, Apple iPhone is also expected to use OLED screen possibly from next year. 

Industry watchers say OLED iPhone would speed up the OLED adoption among other smartphone-makers overall. 

In the meantime, IHS predicted that LCD shipments for smartphones would continue to decrease from this year’s 1.58 billion units to 1.36 billion units in 2020. 

By Lee Ji-yoon (jylee@heraldcorp.com)

Galaxy Note 7 focused on cost cutting: analysts

The latest version of Samsung Electronics Co.'s Galaxy Note smartphone appears to focus on saving costs, rather than delivering cutting-edge functions, industry sources said Friday.

The Galaxy Note 7 smartphone, which is expected to be released on Aug. 2 in New York, is likely to show similar features with the Galaxy Note 5 in terms of its design and functions, according to the industry sources.

Although the camera and battery life of the Galaxy Note 7 are likely to be better than its predecessors, Samsung has sought to increase profitability of its premium smartphones by cutting costs.

"Amid a slump in the global smartphone market, success or failure depends on profitability rather than competitive specifications. The Galaxy Note 7 is also in line with the trend," a Seoul brokerage analyst said.

Another analyst said the focus of the Galaxy Note is cost cutting, due to its difficulty achieving economies of scale.

In contrast, Samsung has strengthened designs and functions in its low-end smartphones, such as the Galaxy A and the Galaxy J.

The strategy helped Samsung post record profits in its smartphone business.

Earlier this month, Samsung said it expects to post an operating profit of 8.1 trillion won ($7.1 billion) in the second quarter of this year, up 17 percent from the same period last year.

According to data by market researcher TrendForce, Samsung's smartphone shipments stood at 77.06 million units in the April-June period, down 4.8 percent from the previous quarter. (Yonhap)

Xiaomi CEO discusses chip partnership with Samsung in Seoul

Xiaomi founder and chief executive Lei June on July 14 held a meeting withSamsung Electronics executives, including Jeon Young-hyun, the company’s memory chip division chief, at the headquarters in Suwon, Gyeonggi Province. 

According to industry sources, the CEO discussed ways to use Samsung’s high-density memory chips for its premium smartphones, including the upcoming Mi Note 2 phablet. 

Xiaomi founder and chief executive Lei June

Xiaomi, dubbed as “China’s Apple,” topped the Chinese smartphone market in 2014 with budget devices. But in recent years the company has dropped to the third place as it has failed to appeal to high-end users. 

The Mi Note 2, featuring a curved display screen, is targeting the premium market. The company has poured resources into securing memory chips and organic light-emitting diode panels from global suppliers, including Samsung, the market leader. 

Samsung to sell Galaxy S7 Edge Olympic Games Edition in S. Korea

 Samsung Electronics said on July 15 that it will launch the Galaxy S7 Edge Olympic Games Edition in South Korea on July 18 in celebration of the Rio Olympic Games. 

The company has set the price at 1,067,000 won (US$ 943). The sales will begin at 10 a.m. exclusively on its online store, the company said. 
The phone features Olympic Games design with the five official colors of the Olympic Rings, around the phone and on the key apps. 

“We produced the limited edition version with full wishes that South Korea players perform to their best ability at the Olympics Games,” said an official of the company. 

A VR gear headset will come with the Galaxy S7 edge package, and Gear IconX will be offered to 100 randomly selected purchasers, the company said. 

As the official Olympic partner in the wireless communications equipment category, the tech giant said it will deliver 12,500 of the limited edition smartphones and Gear IconX to all Rio Olympic Games players to help communicate with their friends and families outside Brazil. 

The limited edition will also be launched in other countries including Brazil, the US, Germany and China.

By Park Yuna (yunapark@heraldcorp.com)

제조사가 신경 쓰지 않는 ‘곡면 엣지’ 폰의 불편함 한가지

보는 것에서 만지는 것까지.

스마트폰을 만들 때 고려해야 하는 것에는 무엇이 있을까? 우선, 예뻐 보일 필요가 있다. 이미 아름다움이라는 것 또한 경쟁력이 된지도 꽤 오래된 일이기 때문. 그래서, 우선은 아름다워야 한다.

미적으로 볼 때, 아름답다는 것은 기준이 정말 모호하다. 당장 문화나 지역적인 차이로 인해서도 같은 사물을 다르게 보기도 하고, 또한 살아온 배경과 환경에 따라서도 얼마든지 시선은 달라질 수 있기 때문.

하지만 보편적인 아름다움이란 비슷할지 모른다. 모두를 만족시키는 것은 아니지만 많은 사람들에게 사랑을 받는 제품은 보편적인 아름다움을 선택한 것이고 그로 인해 엄청난 매출을 올리는 것이다.

그렇다면, 과연 아름다운 디자인과 실제 사용하기에 만족스러운 제품의 차이는 어떤 것이 있을까? 오늘은 단순히 보는 것만으로는 부족한, 스마트폰을 만지고 경험하면서 얻게 되는 사용자 경험에 대해 고민해봤다.

아이폰이든 갤럭시든, 예쁘면 용서가 될까?

스마트폰이 예쁘다고 가정해보자. 예쁜 스마트폰이 있고, 그것을 사용할 때의 작동 속도도 나쁘지 않다. 그러면 좋은 폰일까? 하지만 여기서 단순히 예쁜 폰과 좋은 폰은 뚜렷한 차이가 발생하게 된다.

그러니까 예쁘기만 한 것이 아닌, 실제로 만졌을 때의 촉감은 어떠한지, 또한 무게감은 어떠하고 재질은 어떤 느낌을 주는지도 매우 중요한 요소라는 것. 사람의 손은 매우 민감해서 아주 작은 이음새 하나까지도 느낄 수 있다.

그런 점에서 플래그십 스마트폰이 추구하는 방향성은 단순히 예쁘기만 한 것이 아니라, 스마트폰의 요소 하나하나를 만졌을 때 느껴지는 촉감이나 느낌, 생각에 대한 것들도 고려할 필요가 있다.

개인적으로 그러한 경험이 가장 좋게 다가왔던 제품으로는 아이폰5와 아이폰6s, 갤럭시S7과 V10이 있다. 아이폰5는 제품의 아이덴티티 자체가 각진 모서리이기 때문에 그것을 극적으로 잘 드러냈었다.

아이폰6s의 곡면 라운딩 디스플레이는 경험의 단절을 가져왔다.

그러나 아이폰6s는 정반대로 둥근 디자인에 화면의 모서리까지 곡면으로 처리하면서 전체적으로 모난 곳이 없는 디자인을 완성했고, 이로 인해 손에서 느껴지는 촉감은 매우 만족스러웠다.

그리고 이 둘을 절묘하게 배합한 갤럭시S7은 둥근 전후면 엣지 디자인에 더해 약간의 존재감이 느껴지는 사이드라인이 뚜렷한 차이점을 느끼게 해줬다. 묵직하면서도 날렵한 느낌을 준 것이다.

마지막으로 엘지의 V10은 특유의 측면 재질과 뒷면의 오돌토돌한 패턴이 깊은 존재감을 드러냈고, 각각의 요소가 하나로 뭉쳐지지는 않았지만 그럼에도 자신만의 정체성을 찾았다는 점에서는 높은 점수를 줄 수 있었다.

아이폰과 갤럭시의 '경험의 단절' 이유는?

하지만 아이폰이나 갤럭시와 같은 곡면 라운딩 디스플레이폰은 초기의 제작 의도와는 달리 경험의 단절이 발생되는 경우가 많다. 개인적으로는 케이스의 사용을 꺼려하는데, 본래의 스마트폰이 가진 촉감과 재질과 느낌을 그대로 받고 싶었기 때문이다.

그럼에도 어쩔 수 없이 사용하게 되는 보호필름은 아쉽게도 아이폰이나 갤럭시의 곡면 테두리를 말끔히 감싸주지는 못 했다. 각진 디자인의 아이폰5와 아이폰5s에서는 전혀 아쉽지 않았던 부분이 크게 다가온 것이다.

대안이라면 엣지까지 감싸주는 필름을 사용하는 것인데, 여전히 다양한 종류의 필름을 사용해봤음에도 만족스러운 제품은 거의 찾아보지를 못 했다. 강화유리는 너무 두꺼웠고, 측면까지 덮는 필름은 누렇게 색이 바래고는 했기 때문.

결국 제조사가 공을 들여서 만든 디자인과, 사용자가 만졌을 때의 느낌까지 고려한 재질 및 무게감, 촉감 등은 케이스와 필름의 사용으로 인해 ‘경험의 단절’이 되고 있는 것이 현실이다.

물론 최근에는 삼성전자를 비롯해 많은 제조사들이 기존의 스마트폰과 최대한 비슷한 느낌의 케이스와 속이 비치는 투명 케이스 등을 내놓고는 있지만 여전히 원래의 폰을 넘어서는 경험을 주는 제품은 찾을 수가 없었다.

아직까지는 어느 제조사도 이에 대해서 명료한 해답을 주지도 않고, 소비자들 역시 어쩔 수 없이 보호 필름과 케이스에 의지하는 아이러니한 상황이 이어지고 있는 것에는 의문이 들 수밖에 없었다. 불편함은 곧 기회를 뜻하기 때문이다.

제조사는 의도한 것을 그대로 소비자가 느끼도록 만드는 것이 더욱 중요할지 모른다. 결국 그 경험을 토대로 차기 제품으로 소비자들을 끌고 올 수 있기 때문. 하지만 여전히 사용자 경험에 대한 문제는 서로가 서로에게 떠넘기기 바쁜 것 같다.

어느 제조사가 될지는 몰라도, 액세서리 시장에 대한 가능성을 엿보고 그 시장에 뛰어들기 위해서 노력한다면, 또한 소비자들의 가장 가려운 부분을 긁어준다면 결국은 그러한 도전을 한 제조사가 소비자들의 마음까지 얻게 될지도 모르겠다. - MACGUYVER.

Consumer Reports: Samsung phone not actually water resistant

NEW YORK (AP) – Consumer Reports says a Samsung phone that's advertised as being ``water resistant'' actually isn't.

The problem appears limited to the Galaxy S7 Active, a rugged model available only through AT&T in the U.S. The standard S7 and S7 Edge models have the same claims on water resistance and passed tests.

Consumer Reports, a non-profit organization that is well respected for its product testing, said Friday that it can't recommend the Active because it doesn't meet Samsung's own claims. By contrast, Consumer Reports rates the S7 and S7 Edge phones as ``Excellent'' for their displays, battery life and cameras.

Maria Rerecich, Consumer Reports' director of electronics testing, said she was surprised the Active failed. She said Samsung's claims are usually ``fairly good.''

Samsung told Consumer Reports that it is investigating and has received very few complaints. Samsung told The Associated Press that while the Active is meant to be one of the most rugged phones out there, ``there may be an off-chance that a defective device is not as watertight as it should be.'' 

Samsung says all S7 phones, including the Active, are designed to survive in up to 5 feet of water for 30 minutes. Consumer Reports says that after a half-hour in water, the Active's screen flashed green and other colors and didn't respond to touch. Tiny bubbles appeared on the camera lenses. Consumer Reports tested a second Active phone to verify results and it also failed.

Rerecich said it's likely that the problems affect only some of the units manufactured, but ``we bought two and they both failed.'' Both units were bought online.

Samsung says the Active can withstand drops of up to 5 feet on a flat surface, though Consumer Reports did not test those claims.

In the U.S., the Active phone costs $795, which is the same price as the Edge, and $100 more than the regular S7.

Pantech scores early success with mid-tier smartphone

South Korean mobile phone-maker Pantech’s new mid-tier smartphone Sky IM-100 is selling quickly in the Korean market, with some 30,000 units sold since the model’s launch two weeks ago.

About 7,000 units of the Sky IM-100 were preordered in June while daily sales since the model hit the market on June 30 have averaged 2,000 units, according to SK Telecom and KT, the two mobile service providers that are selling Pantech’s new budget smartphone here.

Pantech’s Sky IM-100 (Pantech)

SKT and KT have reportedly placed additional orders for the Sky IM-100, while Pantech has been kicking up production of the handset, aiming to manufacture some 2,000 to 3,000 units a day at its plant in Gimpo, Gyeonggi Province.

“Though it’s hard to say the Sky IM-100 has taken the local smartphone market by storm, it is certainly performing above market expectations,” said an official from a local telecom company.

Following a two-year hiatus, Pantech had returned to the market with hopes of taking a lead in Korea’s lower-priced smartphone segment, which has been quickly expanding on the back of a rising number of customers seeking cheaper alternatives to expensive, high-spec smartphones.

Korea’s second-largest mobile phone maker LG Electronics also sells a number of budget smartphones under the X Series, standing as Pantech’s biggest competitor in the segment.

Priced at 449,000 won ($388), the Sky IM-100 has put forward a simplistic design, high-end audio technologies and wireless charging features as its main strengths in place of its relatively weaker hardware specifications — all elements which have successfully appealed to local customers, market watchers said.

“Rather than focusing on specs only, we thought hard about what’s really the best for our customers and (tried to) increase user convenience,” Pantech president Moon Ji-wook had said at the time of the smartphone’s launch in June.

Pantech’s new smartphone features a 5.15-inch display, a Qualcomm Snapdragon 430 mobile processor, 32GB of internal storage and 2GB of RAM. It runs on the Google Android 6.0 Marshmallow operating system.

Most notably, the new smartphone has a wheel attached on the side to help users navigate the device’s menus and functions with more ease. It also comes equipped with a bluetooth speaker that activates when a smartphone is placed on top of it,

The firm said it planned to keep up its performance to meet its sales target of 300,000 units by the end of this year, expressing its “sincerest gratitude” to local consumers who have chosen Pantech over other brands.

In preparation, Pantech has expanded the number of its nationwide service centers to 65 and is reviewing the option of granting customers temporary phone to use while their own phones are under repair. It is also reportedly planning a software upgrade for the Sky IM-100.

By Sohn Ji-young (jys@heraldcorp.com)

Operating-margin gap between Samsung, Apple likely to decline to a record low level in the April-June period.

The operating-margin gap between South Korean tech giant Samsung Electronics and California-based Apple is likely to reduce to a record low level in the April-June period. 

Samsung Electronics said in its earnings guidance for the three-month period that it posted 8.1 trillion won (US$7 billion) of operating income and 50 trillion won of revenue during the three months. Based on the estimated figures, the operating margin of the Korean firm will come in at 16.2 percent, the second highest after 17.2 percent Samsung recorded in the third quarter of 2013.

Samsung Electronics’ Galaxy S7 / Samsung Electronics

Samsung’s operating margin dropped to a record low, at 11.52 percent, in the fourth quarter of 2015 while the operating-margin gap with its rival Apple widened by 20.34 percentage points during the same period.

Apple has maintained a double digit operating-margin gap with Samsung for years, but its profit margin dwindled since the fourth quarter of 2015 due to the sluggish sales of iPhones, including the budget model iPhone SE.

The US firm’s operating margin in the second quarter this year is expected to stand at 26 percent or 27 percent, according to industry data.

By Kim Young-won (wone0102@heraldcorp.com)

Samsung unveils Galaxy S7 Edge Olympic edition

Samsung Electronics Co. unveiled its limited edition Galaxy S7 Edge smartphone on Friday designed to celebrate the upcoming Rio Olympic Games.

The South Korean tech giant said it will begin the sale of the special version in South Korea, Brazil, China, the United States and some other selected nations on July 18.

Samsung is a long-time sponsor of the quadrennial global sports gala.

The revelation of the special edition phone marks the official launch of its "global Rio 2016 Olympic Games campaign."

In cooperation with the International Olympic Committee (IOC), Samsung also plans to deliver around 12,500 limited edition phones and Gear IconX Bluetooth earbuds to all athletes participating in the games to be held in August.

It will help them communicate with family and friends around the world more conveniently during the games, said Samsung officials.

Samsung also announced a special app for the athletes that offers detailed schedules for games, venues, results and other information.

Unveiled in Sao Paulo, the limited edition phone is black, featuring the Olympic Rings on the back and the use of its five colors for contact screens and notification bar.

The emblem appears in the phone's user interface in the home and lock screens as well. (Yonhap)