Inside Samsung’s bid to challenge Apple
Firm shares US major’s concern over Chinese rivals, who continue to win customers
Samsung Electronics Co. is overhauling its line-up of premium phones for next year, preparing to launch its first 5G-capable smartphone, a cheaper flagship model and a foldable-screen device to challenge Apple Inc and stay ahead of Chinese rivals, people familiar with the matter said.
The company is in talks with Verizon Communications Inc to launch its Galaxy S10 in the US with a fifth-generation wireless chip set. The goal is to secure support from the biggest US carrier to popularise the technology, designed to transfer data dozens of times faster than the fourth-generation networks in use now.
Samsung has embedded a fingerprint sensor under the display of its S10, overcoming years-long challenges of mass-producing such a device. The world’s biggest phone maker will launch three versions of the flagship model, including a more affordable version, they said.
While Samsung already has a line-up of cheaper “A” models, the move signals the company shares Apple’s concern over Chinese rivals such as Huawei Technologies Co. and Oppo that continue to win customers by offering premium models at lower prices. Samsung is also rushing to complete development of a bendable device that it hopes will let it dominate a niche market with potential to grow. “If you think about how Samsung can differentiate itself and compete in this market, it’s with hardware,” said Cliff Maldonado, an analyst at BayStreet Research. “That’s what their forte is, and their foldable phone is about positioning and branding.”
The standard S10, codenamed “Beyond,” features an OLED screen curved on both sides, round-shaped corners and almost no bezel at the top and bottom, the people said. It will be about the same size as the current 5.8-inch S9 model. The S10 has triple cameras on the back while the front camera is visible and tucked under the screen, the people said.
Statement
“We’re continually evolving our smartphone portfolio to provide our customers with new and exciting innovations and experiences,” Samsung said in a statement.
Samsung and Google have been working on developing a special version of the Android operating software for the phone, whose final user interface will depend largely on which of the two designs is chosen, one person said. Samsung may not be able to launch it commercially until the second quarter, another person said.
“Samsung really needs to hit it out of the park on the next one, especially since the S9 and Note 9 have been such yawners,” said Bryan Ma, vice president of devices research at IDC. “A foldable would garner bragging rights, but I wouldn’t expect it to be an immediate hit.”