Samsung says Galaxy S III sales hit 20 million

Samsung says global sales of its Galaxy S III smartphone have surpassed 20 million in a little more than three months.
Samsung Electronics Co. launched the flagship smartphone powered by Google's Android operating system in Europe in late May. The release schedule was about three months ahead of new phone announcement by rivals Apple, Nokia and Motorola.
Samsung says brisk sales of the S III are helping it retain dominance in the smartphone market. Strategy Analytics says Samsung overtook Apple in worldwide smartphone shipments in 2011.
The company is embroiled in legal tussles with Apple around the world over whether Samsung's mobile devices copied Apple products. Apple last week added the S III to the "copycat" list in its complaint filed with a U.S. court.

Samsung's 'crisis culture': A drawback or driver?

SEOUL: In his 1997 book, Samsung Chairman Lee Kun-hee wrote that a successful company needs a "heightened sense of crisis", so that it always looks ahead even when it's doing well, and needs to be able to respond to change.

It's a credo that has driven Samsung Electronics to become the world's biggest technology firm by revenue - it sells more televisions, smartphones and memory chips than anyone else - and makes the group a must-visit case study for a stream of Chinese firms seeking to tap the secrets of Korean success.

But, in the wake of last month's damaging US patent ruling, which Samsung has said it will appeal - the Korean group was fined more than $1 billion after a jury found it had copied key features of Apple's iPhone - the group's top-down command structure and decision-making process are blamed for stifling creativity.

What's been good for getting things done quickly, such as making bold decisions on big investments in chips and display screens, may not now best suit a company that needs to shift from being a 'fast follower' - quick to match others' products - to an innovator.

Within Samsung, where some designers feel overlooked and undermined, there are calls for a change of tack.

The 'constant crisis' has worked well, helping Samsung overtake Japanese technology brands Sony, Sharp and Panasonic in chips, TVs and displays, end Nokia's decade-long supremacy in handsets and overtake Apple in smartphones.

But that has come with a big reputational hit - that Samsung makes knock-off products.

Moving heaven and earth
"It's a crisis of design," JK Shin, head of Samsung's mobile division told staff in February 2010 as Samsung worked on its first Galaxy phone in a panicky response to the iPhone's smash-hit debut, according to an internal memo filed to a US court as part of Apple's lawsuit.

"Influential figures outside the company come across the iPhone, and they point out that 'Samsung is dozing off.'

"All this time, we've been paying all our attention to Nokia, and concentrated our efforts on things like 'folder', 'bar', 'slide,' yet when our UX (user experience) is compared to the unexpected competitor Apple's iPhone, the difference is truly that of Heaven and Earth."

The sense of crisis and urgency to catch Apple drove Samsung designers and engineers to opt for a concept that best matched the look and feel of the iPhone, according to one Samsung designer, who isn't authorized to talk to the media and didn't want to be identified.

"Designers have lots of unique and creative ideas, but these have to be loved by the top decision-makers. The problem was, because they were so fascinated by the Apple design, these ideas weren't really satisfactory to please the top level," said the designer.

"I think elsewhere top managers respect their chief designer's decision, but at Samsung, they overrule designers and have the final say about what design we go with. That limits our capability. To be better than a good fast follower, Samsung needs a more horizontal culture and to empower designers."

A Samsung executive, who didn't want to be named, countered that the group had started out with little innovation - it struggled even to make simple black and white TVs - but now drives new ideas internally through incentives and bonuses, with Lee himself very interested in new technology and design.

More wow
One recent example of that top-heavy command structure came less than a fortnight before the launch of Samsung's Galaxy S III smartphone in May, when vice chairman Choi Gee-sung ordered half a million blue phone cases to be thrown away as the design, with thin, silver stripes, was unsatisfactory, according to a person familiar with the matter.

After a number of tweaks, Choi approved the final design on a Sunday just 10 days before launch, triggering an initial supply bottleneck and delaying shipments of some 2 million units, according to some analysts.

Similarly, when Choi visited Samsung's US telecoms operation a year ago, internal documents filed to the court during the US patent battle with Apple showed managers there were worried about a lack of initiatives to impress him.

"Overall plan is OK, but we are lacking a WOW idea to share with GS (Choi). Generally, lacking confidence in our plan to 'beat Apple'."

The react-fast philosophy is a far cry from how Apple worked. Christopher Stringer, a 17-year Apple design veteran, told the US court that around 16 "maniacal" individuals from all over the world used to brainstorm around a kitchen table to come up with the company's mobile products.

By contrast, Samsung's design sanctum looks much like any other Samsung department, a Dilbert sprawl of desks and cubicles with framed aphorisms from the founding family on the walls: "Be with Customers", "Create Products that Contribute to Humanity" and "Challenge the World, Create the Future."

"It's pretty much a top-down, hierarchical culture that doesn't do any good in inspiring creativity," the designer added. "I don't think it's a unique Samsung problem, but one that plagues South Korean society as a whole. Samsung is making efforts to change it, but it's still very much top-down."

"Probably what we need now is the creative environment that Silicon Valley boasts."

"Samsung men"
Living up to its reputation for moving swiftly and nimbly in an increasingly competitive market, Samsung's mobile product life cycle is getting shorter - it introduces a new product around every six months. In a surprise last Wednesday, Samsung unveiled a smartphone using Microsoft's latest mobile software, rushing the announcement just days before the highly anticipated launch of Nokia's version.

"Regardless of any hindrance, Samsung will continue to provide outstanding, innovating and unique products that stand out in the industry," Samsung's mobile chief Shin said at Europe's biggest electronics show in Berlin.

Shin has also praised the company's "diligent and exemplary" elite workforce, the so-called "Samsung men" trained in the 1990s with a textbook called "New Samsung Management" that summarized chairman Lee's remarks and his sense of crisis.

Lee, who took over as chairman from his father and group founder in 1987, stepped down in 2008 after he was convicted of embezzlement and tax evasion, but returned within two years following a presidential pardon. He marked his return with his familiar refrain.

"We're in a real crisis. Top global companies are reeling and (I'm) not sure what will happen to Samsung. Most products and businesses that represent Samsung today will be gone in 10 years time. We should start again. There's no time to waste."

That summer, Samsung saw its telecoms profit halved as Apple captured consumers' hearts and wallets. But it swiftly rebounded with its Galaxy line-up and has posted record profits each year since. Annual profit this year is likely to top $22 billion, up 45 per cent from 2010.

But the crisis culture is wearing thin for some.

"It does keep people agile and alert, but people joke that once you work more than five years at Samsung you've probably heard it more than enough and think it more of a repetitive cycle," said a Samsung chip developer, who wasn't authorized to talk publicly about the company. "You just get used to these things."

Even 70-year-old billionaire Lee may be mellowing.

Briefed after the bruising Apple defeat, Lee said only: "Deal with it well," according to a person familiar with the matter.

Why the next iPhone will not be called iPhone 5

There have been plenty of reports/ rumours/ leaks about Apple's upcoming iPhone, and almost all refer to the next version of the iPhone as 'iPhone 5'. While a few people have tried to explain this very reasoning before, most still don't seem to get the message. Let's reiterate why there's reason to believe the next iPhone will NOT be called 'iPhone 5'.

First, let's take a look at how iPhone naming has evolved over the years.

The first generation naming doesn't need any explanation. The second generation iPhone was called the iPhone 3G after the most important feature it added i.e. 3G network capabilities. The third generation iPhone was pretty much the same as the iPhone 3G, but faster, which translated into the S for Speed in iPhone 3GS.

The iPhone 4 is the only iPhone till date to come with just a number as a suffix. It is also the only iPhone till date to have the generation of the hardware as its suffix - the fourth iPhone model i.e iPhone 4. The next generation phone, iPhone 4S, featured the same industrial design in a faster package - except this time the S was not for Speed, but Siri, Apple's virtual assistant that was marketed as iPhone 4S's great new feature.

Which brings us to the iPhone 2012. It'll be the sixth iPhone till date, so why would it be called iPhone 5? It just doesn't make any sense. So iPhone 6? That would seem odd, but it is more likely than iPhone 5!

iPhone 2012 comes with a new industrial design, so you can rule out it being called any derivative of iPhone 4S, especially since Apple hasn't used the same number for more than two generations. So what else can it be called?

We think an iPad-like change in naming convention, where Apple drops the number from the name entirely is extremely likely. So say hello to 'The new iPhone', or simply 'iPhone', as later generations will be called. That's what Apple has done with the iPad, and we believe there's good reason for the iPhone to follow suit.

What about 2013, when the next iPad and iPhone debut? If they are also called 'iPad' or 'iPhone', how will Apple differentiate between the two models, especially since both old and new models are likely to be on sale side by side?

Let's see what Apple does for its other hardware, Macs. Since Apple typically stops selling the old 11-inch MacBook Air when the new one debuts, it doesn't face this problem. In channels where the old hardware continues to be sold, it's suffixed with the processor or, more pertinently, the year.

Here's Apple's list of models that support its Mountain Lion OS:

• iMac (Mid 2007 or newer)
• MacBook (Late 2008 Aluminum, or Early 2009 or newer)
• MacBook Pro (Mid/Late 2007 or newer)
• Xserve (Early 2009)
• MacBook Air (Late 2008 or newer)
• Mac mini (Early 2009 or newer)
• Mac Pro (Early 2008 or newer)

Notice something? What is Apple using to differentiate between products with the same name? Yes, year. So could Apple use years to differentiate between one iPhone and the other? Could be, but let's look at another example first.

What about other hardware like iPods and Apple TV? They follow an interesting nomenclature, where the generation of the hardware gets added as a suffix e.g. the iPod touch before the current is now called iPod touch 3rd generation.

Since iPhone and iPad are fundamentally closer to the iPod touch than Macs (duh!), it seems logical Apple will extend the same naming convention to these devices. In fact, at some places on Apple's website the current iPad is already being referred as 'iPad (3rd generation)' - see image.

So, to summarise:
1) The next iPhone will likely be called 'The new iPhone', or simply 'iPhone' and subsequent iPhone models will follow the same naming convention.
2) Apple will likely use the generation of the hardware to different between different iPhone and iPad models.

So next time you see someone use the term 'iPhone 5', be sure to point them to this article.

Samsung unveils new Series 5, 7 touchscreen PCs

Samsung has started this year's consumer electronics fair IFA in style, launching three new All-in-One (AiO) PCs that feature innovative touch-screen technology. The AiO PCs feature touch screens with resolutions of 1920 x 1800 and are designed to run Windows 8. The AiOs also responded to what Samsung call, "hand gesture recognition features," meaning that users can "swipe" the screen without touching it from a distance of up to 90cm away.

The Series 5 boasts a 21.5 inch screen while the Series 7 clocks in at 23 and 27 inches respectively. The larger Series 7, designed for use in the family room, boasts Intel Core i5, 6GB of 1,600MHz DDR3 memory, a 1TB hard-disk drive and an Intel HD Graphics 4000 processor.

All three versions include DVD +/-RW Super Multi Dual Layer optical drives, HD audio, 1.3-megapixel cameras for the hand-gesture-recognition features, Wi-Fi and Bluetooth support, High-Definition Multimedia Interface (HDMI) and USB 2.0 and 3.0 slots, and wireless keyboards and mice.

The  new devices are slated to arrive in stores on October 26 -- the Series 5 starting at $749 and the Series 7 ranging from $1,099 to $1,699. 

From: AFP

Samsung shares fall 7%, market value down by $12 billion after Apple's victory

Samsung Electronics shares tumbled more than 7 percent on Monday, wiping $12 billion off the South Korean giant's market value, as Apple Inc's sweeping legal victory in their U.S. patent battle raised concerns about its smartphone business - its biggest cash cow.

A U.S. jury found Samsung had copied critical features of the hugely popular iPhone and iPad and awarded Apple $1.05 billion in damages in the most closely watched patent trial in years.

Shares in Samsung - the world's biggest technology firm by revenue - tumbled as much as 7.5 percent, its biggest daily percentage drop in nearly four years, to 1.183 million won, versus a 0.5 percent drop in the broader market.

Trading volume was heavy, more than doubling the last week's daily average by early Monday trade.

"An adjustment in the next few days is unavoidable as the damage amount was much bigger than market expectations, and there are further uncertainties such as the possibility of a sales ban," said John Park, an analyst at Daishin Securities.

Analysts estimate Samsung's earnings will be reduced by 4 percent this year due to increased patent-related provisioning.

The jury at a federal court in San Jose, California, found on Friday that Samsung infringed on six of seven Apple patents. The verdict, which came after less than three days of jury deliberations, could lead to an outright ban on sales of key Samsung products and will likely solidify Apple's dominance of the exploding mobile computing market.

EYES ON GALAXY S III

Apple plans to file for a sales injunction against Samsung, its lawyers said, and the judge in the case set a hearing date for September 20.

Top executives at Samsung, led by vice chairman Choi Gee-sung and head of its mobile division JK Shin, held an emergency meeting on Sunday.

The biggest concern for Samsung remains whether its latest flagship product the Galaxy S III, which was not included in the case, will be also targeted by Apple and included in the list of products banned in the U.S. market. The model is Samsung's best selling smartphone, with sales topping 10 million since its late May debut.

But Samsung's skill as a "fast executioner" - quick to match others' innovations - would likely mean tweaked, non-patent infringing devices would be on the market soon after any ban came into place, analysts said.

"The ruling is a costly lesson for Samsung - but also an opportunity for a true alternative to Apple's well-known hardware with more innovative thinking and imaginative products ahead," Morgan Stanley analysts said in a note.

"There are more ways to build a touch screen smartphone and thanks to its fast execution capability, Samsung could quickly work around design changes, upgrading models and introducing new technology such as flexible displays, Galaxy S III and Galaxy Note to differentiate its devices from Apple."

Samsung was disappointed by the verdict and plans to keep the legal fight to have its claims accepted, according to internal memo sent to its employees, that was seen by Reuters.

"We've sought to settle this through negotiations, as Apple is our customer but had no choice but to counter sue," the memo said. "There's no firm in history which has sustained growth by trying to stifle competition with legal fights on patents, rather than fairly compete with innovation in the market place."



Copyright Thomson Reuters 2012

Cheap and cheerful, Chinese phones outsmart Apple

In China's booming smartphone market, which is set this year to overtake the United States as the world's largest, a host of little-known local firms are primed with cheap phones to squeeze market share from U.S. giant Apple Inc's iPhone.
In the latest local challenge to the iPhone, Xiaomi Technology on Thursday launches the successor to its popular MiOne smartphone, which is expected to have top-end specifications exceeding those of the iPhone 4S at around half the price.
While iPhone sales will increase in China, Apple's market share may stagnate or even dip as the market's changing demographics mean the iPhone flourishes in just a handful of wealthy Chinese cities, analysts said.
"The sweet spot of affordability in China is 800-1,500 yuan," said Michael Clendenin, managing director of Shanghai-based consultancy RedTech Advisors. "The 'Lao Bai Xing', or man in the street, is going to go for these mid-tier phones."
Industry researcher IDC estimates that in China last year, smartphones costing less than $200 made up 40 percent of shipments, while devices costing $700 and more accounted for 11 percent of the market.
Apple releases a single iPhone model a year at a price around $800 equivalent to about two months pay for an urban Chinese, who make up half of China's 1.3 billion population. Analysts say the real growth in China is in cheaper smartphones where a wide variety of models at different prices appeal to first-time buyers.
"Apple isn't going to rule China, simply because of the limited models they have and the price points they target," said TZ Wong, an analyst with IDC. "Based on these two factors, we do not think Apple will be the No. 1 smartphone player in China."
Apple ranked second in January-March smartphone shipments in China, with 17.3 percent market share, trailing Samsung Electronics' 19.2 percent, according to research firm, Gartner.
Smartphones from Xiaomi founded only two years ago but already worth more than Blackberry maker Research in Motion, according to private market valuations have proved so popular they sell out in minutes after going on sale online. The company, founded by CEO Lei Jun, said last month its first-half revenue was close to $1 billion as it sold more than 3 million phones.
Mirroring Apple's annual worldwide developers conference (WWDC), where devotees would pay to listen to Steve Jobs showcasing new products, the informally-clad Lei will charge MiOne fans 199 yuan to attend the Beijing launch, with the proceeds going to charity.
iOS to slip to third
Apple's market share by volume has been on a downtrend, and the share of the market commanded by its iOS mobile operating system is expected to slip to third place by 2016 from second earlier this year, according to Gartner analyst Sandy Shen below Google Inc's Android and Microsoft Corp's Windows.
Apple's iPhone sales in China, its second-largest market, stumbled in April-June on inventory adjustments with the launch of the iPhone 4S. That extra inventory meant resellers didn't need to buy as many iPhones during the quarter, and the expected launch later this year of the iPhone 5, with enhanced Chinese language capabilities, also likely held back orders.
"Apple's market share is pretty stable. It will be flat over the next five years. Although volume-wise it's increasing, that's because the total market is growing," Shen said.
Research firms IDC and Gartner predict China's smartphone shipments could hit 140 million this year, topping those in the United States.
High spec, low cost
Growth is driven largely by smartphones made by ZTE Corp, Lenovo Group and smaller private firms such as Xiaomi, Gionee and Meizu Technology.
Meizu phones, which sell in China and Hong Kong for 1,500 yuan, are feted by Western technology blogs for offering high-end smartphones at bargain basement prices.
Offering even cheaper models, Alibaba Group, Shanda Interactive and Baidu Inc have all this year launched smartphones for under 1,000 yuan. Baidu's phone, made with partners, retails at 899 yuan, while Alibaba's waterproof smartphone, made with Haier Electronics Group, costs 999 yuan.
"For those with an iPhone or Samsung it's just a replacement cycle. But for many people who haven't got their first smartphone, those are the people who will get cheap smartphones," Shen said.
Copyright Thomson Reuters 2012

Apple iPhone 4 'useless' for left-handers

CAPE TOWN: Apparently, the designers and technicians of Apple iPhone 4 have ignored the needs of left-handers.

Some people were unable to call or surf the internet on the Apple iPhone 4, which had hit shops in 2010, as holding the device in the left hand could in some cases cover the phone's antenna, thereby cutting off reception.

Agnes Maria Forsthofer, a member of an association for left-handed people in Germany, pointed out that 'there are essentially no devices fitted for left-handers.'

Even standard devices like a mouse or keyboard have some pitfalls for left-handed users.

According to News24, Barbara Sattler, who heads an information centre for left-handers in Germany, pointed out that the 'number pad for example is difficult to use with your left hand'.

"There are only a few keyboards where the number pad is on the left side," Sattler said.

Sattler suggested that left-handers should rather get a separate number pad with a USB connection, like those available for laptops.

Kodak still in talks to sell patents, extends auction deadline

NEW YORK: Eastman Kodak extended its patent auction on Monday, saying it would not announce a winner as planned because it was still in discussions with bidders.

Kodak, which filed for bankruptcy in January, said in a statement that the auction was ongoing. It declined to comment further, citing confidentiality agreements.
A spokeswoman for the company declined to comment on the length of the extension. The company said it expected later on Monday to submit regulatory filings revealing more information about its business, including financial projections.
Kodak, which has lost more than $600 million so far this year, began an auction of 1,100 digital patents last Wednesday. It had been scheduled to designate a winner on Monday ahead of a Manhattan Federal Bankruptcy court hearing on August 20.
The company, a photography pioneer that has been unable to adapt to the shift to digital imaging, would use the money from the sale to pay back investors. It has borrowed nearly $700 million in bankruptcy financing.
It is unclear how much the patent sale will raise. The Wall Street Journal reported on Friday that Apple, Google and Microsoft made bids, but they were significantly below Kodak's estimates for the patents' value. Kodak said early in 2012 that an outside firm had estimated the value of the portfolio at $2.2 billion to $2.6 billion.
Kodak's digital patents were grouped into two lots - one of 700 patents and another of 400. They have been for sale for more than a year, but the sale was complicated by the bankruptcy and lawsuits over the ownership and authenticity of the patents. It is in the midst of litigation with several companies, including Apple, Samsung and Research in Motion.
Kodak has said it wants to be out of bankruptcy by early 2013. To stick to that timeline, it will need to present a bankruptcy reorganisation plan towards the end of this year.
In a filing with the US Securities and Exchange Commission on Monday, Kodak said it would continue with plans outlined in January to grow its consumer inkjet and digital printing sectors.
The filing said Kodak would also push to increase its presence in the industrial packaging industry worldwide.
The company outlook said Kodak expects to bring down operating expenses through 2014 by 40 percent, while revenues will decline only about 20 percent over the same period.
The case is in Re: Eastman Kodak Co et al, US Bankruptcy Court, Southern District of New York, No 12-10202.

Lenovo Yoga Convertible Laptop-Tablet Coming with Windows 8 RT

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Lenovo officially announced its Windows 8 ThinkPad Tablet 2 this week, which will be aimed at professionals. But the company’s consumer side is also preparing its Windows 8 products, including its IdeaPad Yoga, which was shown off earlier this year at the Consumer Electronics Show in Las Vegas.
The computer has a unique design: It looks like a regular laptop until the screen folds backwards to morph it into a tablet.
The device is scheduled to hit the market around the time of the general availability of Windows 8, which is slated for Oct. 26, ABC News has learned. There will be two versions of the Yoga – one that has an Intel processor and one that has a lower-powered ARM Nvidia Tegra processor. The ARM version will have double the battery life of the Intel version, sources said.
Microsoft has three versions of Windows 8 – Windows RT for ARM processors, which are lower-powered, and Windows 8 and Windows 8 Pro for x86 Intel and AMD processors.
The Wall Street Journal reported earlier today that Lenovo is prepping to release a Windows RT tablet with a “keyboard that flips around.” ABC News’ sources confirmed that this tablet is, in fact, the Yoga.
While Windows RT tablets based on ARM won’t have access to all the legacy applications for Windows, Windows RT tablets, like the Yoga, will have access to all the apps in Microsoft’s Store, which will be launched alongside Windows 8 in October. A lot of Windows 8 computers and tablets are expected in October, including Microsoft’s own Surface tablet. Earlier this week Lenovo’s Dilip Bhatia told ABC News that Surface has brought excitement to the market.
When reached, a Lenovo spokesperson said the company will have a number of Windows 8 devices, but wouldn’t comment on unannounced products.

From abcnews