March 15: Samsung Electronics is
the world leader in smartphone sales, besting Apple in many countries.
Now Samsung of South Korea is stepping up its challenge to Apple,
bringing the battle to its rival’s home turf.
At a packed event
at Radio City Music Hall in New York yesterday, Samsung showed off the
Galaxy S 4, which has a screen slightly larger than the latest iPhone.
The device has
quirky software features, including Smart Scroll, in which the front
camera detects when someone is looking at the phone, and scrolls the
screen according to the angle the phone is tilted. The phone can also be
controlled with hand gestures. Waving a hand down in front of the phone
will scroll up on a web page, for example.
“Once you spend
time with the Galaxy S 4, I’m very confident you’ll find how its
innovations make your life simple and fuller,” said J.K. Shin, president
of Samsung Mobile Communications, at the company’s first promotional
event for its flagship smartphone.
With the prominent
introduction of the phone, Samsung is trying to end its role as
understudy to its more celebrated competitor, especially in the crucial
American market, where Apple still rules.
Even as Samsung
has surpassed Apple in global market share, it is often criticised in
the US as an effective copycat, taking most of its product cues from
Apple. But Samsung has begun flexing its marketing muscle more
aggressively here to try to change that perception.
“This is Samsung’s
time right now,” said Gene Munster, an analyst at Piper Jaffray. “They
are clearly gaining more attention this time around than they ever
have.”
Apple itself is
showing signs of concern. In an unusual move on the eve of the Samsung
event, Philip W. Schiller, Apple’s senior vice-president for worldwide
marketing, gave several interviews in which he discussed flaws in mobile
devices based on Android, the Google operating system used by most of
Samsung’s smartphones.
But Apple still
has many big advantages that allow it to defend its position in the
mobile business. Its iPhone 5 was the best-selling smartphone in the
world in the holiday quarter, even though Samsung’s vast portfolio of
phones is bigger than Apple’s.
By charging a
premium for its products, Apple raked in 69 per cent of the profits in
the smartphone business last year, compared with 34 per cent for
Samsung, according to a report by T. Michael Walkley, an analyst with
Canaccord Genuity. (The numbers add up to more than 100 per cent because
Apple and Samsung combined made more money


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