Samsung plans on producing mobile devices running on LTE networks and is also counting on its new flagship smartphone, the Galaxy S, to lift its sails.
J.K. Shin, the president of Samsung's mobile communications division, said the next big focus for the company will be LTE. "We are considering producing a lot of smartphones or other devices based on LTE technology," he said in an interview with Dow Jones Newswires. "In that sense, network capacity will have to be significantly increased."
Verizon Wireless (NYSE:VZ) is charging ahead with plans for LTE devices, and Verizon Wireless CEO Lowell McAdam has mentioned Samsung as a potential partner for an LTE tablet device. Shin said that Samsung will release a tablet, dubbed Galaxy Tab, no later than the third quarter.
The world's No. 2 handset maker by shipments, Samsung has traditionally lagged behind smaller competitors, including Research In Motion (NASDAQ:RIMM) and Apple (NASDAQ:AAPL) in smartphones. Shin said he expects the transition from feature phones to smartphones in the wider handset market to accelerate. He said the uncertain economic climate in Europe might impact second-quarter sales, but that the company hopes strong sales of its Galaxy S will help it pick up the slack.
The high-end Android device, which multiple U.S. carriers are rumored to be considering, went on sale in foreign markets earlier this spring. Shin said that device will help boost Samsung average selling price, which, in turn, will translate into higher margins.
- see this WSJ article (sub. req.)
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