Samsung chairman urges firm to be more competitive

By Kim Yoo-chul

Samsung Electronics Chairman Lee Kun-hee asked his top lieutenants Wednesday to maintain the firm’s current lead in smartphones. Lee didn’t specify the names of rivals.

But California-based Apple is likely the chairman’s biggest concern, according to Samsung officials.

“Samsung’s top-management reported to the chairman on new smartphone and camera variants during a luncheon Tuesday. We discussed how to beat Samsung’s rivals,” said Kim Soon-taek, the head of Samsung’s control tower, and the chairman’s top secretary, in a meeting with reporters at Samsung’s headquarters in downtown Seoul.

Lee had just come back from a three-week trip in Europe, was briefed by Samsung Electronics CEO Choi Gee-sung and mobile chief Shin Jong-kyun about the lack of results in peace talks with Apple over a patent fight.

Kim declined to unveil further details about the luncheon.

The chairman’s remarks come a day after Samsung Electronics released its latest Galaxy S3 smartphone in a pebble blue model. Samsung confirmed, however, it was suffering delays due to manufacturing issues.

Samsung executives said the firm is being challenged to widen gaps with its rivals in consumer electronics including smartphones, tablets and televisions. Lee said the continued macro-economic troubles in Europe could negatively impact Samsung.

It sold 44.5 million smartphones in January-March — equal to nearly 21,000 every hour — giving it a 30.6 percent market share. Apple sold 35.1 million iPhones, taking 24.1 percent market share, according to Samsung officials and research firms.

Kim said the chairman mentioned greater investment in the camera business, which is Samsung’s second-tier business with notebooks and PCs following smartphones, LCDs, TVs and chips.

Samsung has a minor reputation in budget cameras such as compact models, but struggles in high-end digital SLR versions as its lens technology is far behind Japanese firms including Canon, Nikon and Olympus. Samsung is still rumored to have an interest in buying Olympus’ lens-making unit, though a Samsung spokesman declined to confirm this.

“The reason why Samsung’s top management reported on new camera models is simple. The camera business has trouble catching up with Japanese companies,” said an unnamed executive.