Sat, May 05, 2012 - Page 11 News List

Galaxy SIII to have minimal impact on HTC: analyst

NOT A THREAT:The launch of the new Galaxy phone is not expected to hurt Taiwanese phonemaker HTC, as both companies are expected to reap big profits

Staff writer, with CNA

The release of Samsung Electronics Co’s latest mobile phone should have a limited impact on its Taiwanese competitor HTC Corp (宏達電), an analyst said yesterday after the South Korean electronics giant unveiled its flagship GalaxyS III smartphone in London.

Samsung plans to launch the model on May 29 in 145 countries, starting in Europe with a 3G version. A long-term evolution (LTE) version for North America, Japan and South Korea is expected in the summer.

The new model will help Samsung expand its share of the global smartphone market this year, especially before the arrival of the iPhone 5, said Jeff Pu (蒲得宇), an equity research analyst at Taipei-based Fubon Securities Co (富邦證券).

However, it should not affect HTC much because the Taiwanese smartphone company has improved its strategies and channels for marketing its products, Pu said.

The smartphone market shares of both Samsung and HTC are set to grow, as the market share of Apple Inc, Nokia Oyj and Research In Motion Ltd shrink, he forecast.

Against the Galaxy SIII, HTC can still claim the lead in terms of camera, sound and power optimization because of Qualcomm Inc’s LTE chipset, the Snapdragon S4, Pu said.

In addition, the Taiwanese brand could take advantage of the Galaxy SIII’s late arrival in the US market by highlighting its Hero models: One XL and EVO LTE.

“Historically, we note that competition has not been the direct reason behind HTC’s market share; rather it is more due to the competitiveness of HTC’s products,” Pu said.

However, Adam Leach, chief analyst at Ovum, was upbeat about Samsung’s marketing and distribution of its 4.8-inch, quad-core smartphone on a global scale, particularly as the next iPhone is not expected to be out until the end of the year.

The London Olympics would provide the perfect marketing opportunity for Samsung, Leach said. However, Samsung still needs to stand out amongst other Android-based smartphones, he added.

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