engineering.)
"The research process is unimaginable," said Chang Donghoon, an
executive vice president of Samsung who leads the company's design
efforts. "We go through all avenues to make sure we read the trends
correctly." He said that when the company researches markets for any
particular product, it is also looking at trends in fashion,
automobiles and interior design.
Song Hangil, a Samsung product designer, described a visit to the
Marina Bay Sands resort in Singapore, where he said he was amazed by
the views of the sky, the cityscape and the water. He wanted to
create an effect where water was overflowing from the screen. As a
result, taps on the Galaxy S III's phone screen create a unique
ripple effect.
The genesis of the wide Galaxy Note phone reflects that same kind
of consumer research. From focus groups and surveys, Samsung found
that many respondents wanted a device that was good for handwriting,
drawing and sharing notes. Asian-language speakers, in particular,
found it easier to write characters on a device using a pen than
typing. Those insights led to the Note, a smartphone that comes with
a digital pen.
To be sure, some of that research appears to come closer to
copying. Apple sued Samsung in U.S. Federal District Court last year
for patent infringement and won a $1 billion judgment. One of the
most explosive pieces of evidence was a detailed report breaking
down each hardware and software feature of the iPhone and how each
compared with Samsung phone features. Samsung is fighting the
decision in court.
Reading the market helps the company persuade the wireless
carriers to aggressively sell the Samsung phones and tablets.
"That's kind of the secret sauce," said Kevin Packingham, chief
product officer of Samsung. (Samsung also spends heavily on
advertising globally. It outspends Apple and Microsoft.)
Daniel Hesse, Sprint's chief executive, called Samsung a
"terrific partner" because of its willingness to work with the
carriers on the creation of phones. For carriers, that could be a
refreshing alternative to working with Apple, which completely
controls the design of its iPhone's hardware and software. "They
work with the carriers, they want to hear from you what you want,
they don't tell you what it's going to be. It's very two-way," Mr.
Hesse said.
Samsung differs in one other important way. It remains a
manufacturer, while Apple contracts out the assembly of its devices.
Horace H. Dediu, a mobile industry analyst at Asymco, said that
historically Samsung built its business around producing and selling
components to other manufacturers, including Apple, Sony and Hewlett-
Packard. While Samsung had been making and selling consumer
electronics in South Korea and developing markets for decades, these
relationships taught it a lot about competing with -- and beating --
the biggest names in the industry.
By working with so many companies, it gets insight into how to
plan investments for successful products. And it can use the same
resources to build its own products, Mr. Dediu said. This is why
Samsung has gained a reputation of being a "fast follower," he
added.
Apple has been one of Samsung's largest customers. Samsung's
flash memory processors, graphic chips, solid state drives and
display parts have appeared in Apple's iPhones, iPads, iPod Touch
devices and MacBooks. But for some of its latest mobile products,
Apple has been seeking other vendors like Toshiba, Elpida and Sharp
to use their components instead.
Having worked closely with Apple and other companies for years,
Samsung, which earmarked $21 billion last year -- almost twice as
much as Apple -- for capital expenditures, can easily get a sense of
how to plan production and distribution of a successful phone, Mr.
Dediu said.
He warned, however, that Samsung had made no serious investment
in the "cloud," where content is stored on remote servers and pulled
from people's devices over the Internet. The cloud could play a more
crucial role as mobile products shift away from big screens toward
wearable devices, like glasses and wrist devices, he said.
But then, the one thing Samsung may have trouble knowing is how
exactly Apple is going to swerve next.
Most Popular Stories
- Facebook, Twitter Announce Apps for Google Glass
- Will Yahoo Splurge on $1-Billion acquisition of Tumblr?
- European Car Sales up First Time in 20 Months
- 'Star Trek Into Darkness': The Return of Khan?
- Google Fiber Making an Impact
- Entrepreneurs Chase Social Media
- Exciting Night for UFC Fans
- Teen Drivers Should Be Prepared for Any Car-Related Situation
- Summer Movies Aimed at Young Men, Teen Boys
- Financial Times Twitter, Email Hacked
News-To-Go
Advertisement
Advertisement
News Column
Samsung's Smartphone Strategy Takes on iPhone
Page 2 of 2
Source: (C) 2013 International Herald Tribune. via ProQuest Information and Learning Company; All Rights Reserved
1 | 2 | Next >>
Story Tools



