As we all know, Apple has had a truly phenomenal year – record-breaking profits, sales, and a hard-running share price that has made Apple the most valuable company ever. The flip side of all of this is that Samsung has had as bad a year as Apple has had good. Falling sales and profits have left Samsung in a bind, and as this article explains, it’s counting on a new phone line, and a new mobile payment system, to turn things around. – FD
(Bloomberg) — Samsung Electronics Co. rebooted its premium Galaxy smartphone line with the S6 and S6 Edge, featuring a three-sided screen, as the South Korean company tries to reverse profit declines and market-share losses to Apple Inc.
The devices unveiled at the Mobile World Congress in Barcelona on Sunday include payment software that makes them compatible with about 90 percent of card readers. The phones, which feature metal bodies and a fingerprint reader for added security, will go on sale in 20 countries starting April 10.
Samsung is trying to regain competitiveness after Apple in September released iPhones with bigger displays, a market segment pioneered by Galaxy S models. The premium Edge model has a screen that extends onto the right and left sides of the phone, adding real estate to access applications and enabling a feature that causes the phone to glow along the edges to alert a user to calls or texts even when placed face down.
“We codenamed the project ‘Zero,’ and what we meant by this was to get back to the fundamentals,” David Kang, vice president of marketing at Samsung, said in an interview. “Everyone from design, marketing and engineering took a step back.”
The S6 models will go on sale worldwide, including China, where consumers wanting bigger devices that perform the roles of phone and tablet computer are flocking to iPhones. That momentum helped propel Apple into a global tie with Samsung in the fourth quarter and helped contribute to a third straight decline in Samsung’s quarterly earnings.
Screen, Colors
Samsung shares have risen 2.3 percent this year, compared with a 3.7 percent increase in the benchmark Kospi index.
The S6 devices will have a 5.1-inch front screen, the same size as the S5. They run on Samsung’s own 64-bit chips, which are based on ARM Holdings Plc’s architecture, and operate Google Inc.’s Android Lollipop software. The camera has 16 megapixels and includes a “bright” lens that improves nighttime photos.
Both phones will be available in gold, white and black. The S6 also comes in blue, while the S6 Edge also comes in green.
The phones have high-speed and wireless charging capabilities. Users will get enough power from 10 minutes of charging to watch video for 2 hours, Samsung said.
“If you look at the phone, it is a complete evolution,” Kang said. “Everything from the glass, the colors, the finishing, metal — it is a total new direction we’re taking.”
Samsung Pay will be available starting in the third quarter in the U.S. and South Korea before being rolled out globally. Samsung has partnered with MasterCard Inc. and Visa Inc. and is in discussions to work with companies including American Express Co., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co.
Samsung bought LoopPay Inc. last month to help it develop technology for mobile payments. LoopPay makes it easier for retailers to accept payments via smartphones.
Bloomberg