Samsung not to roll out MS phone here

By Kim Yoo-chul, Cho Mu-hyun

Samsung Electronics has decided not to introduce Ativ S smartphones using Microsoft’s (MS) Windows Mobile as its main operating platform in Korea, this year, because the firm was negative about the market outlook for devices using Windows software, here, according to company officials, Friday.

But they said that the world’s top smartphone manufacturer will make MS platform-based phones available in Europe, believing that the phones will gain popularity in the region as people there are familiar with such phones thanks to Nokia’s popularity.

“Samsung decided not to roll out Ativ S smartphone in Korea this year. But it will launch promotional campaigns for the Ativ S for consumers in Europe,” said an official from the company.

During a brief meeting with local reporters at Samsung’s main office in downtown Seoul, Thursday, its mobile chief Shin Jong-kyun said; “We will release the Ativ tablet this month (in Europe) and also the Ativ S smartphone will be available either late this month or early next month in some countries.”

The Ativ S is Samsung’s new smartphone variant using Microsoft’s Windows 8 mobile platform. The S phone was introduced at the recent IFA trade fair in Berlin.

“The Ativ has attracted attention because the name change reflects Samsung’s higher expectation for Windows phone. But the chances of the Ativ S to hit the jackpot in Korea are quite low,” said the official.

Last November, Nokia of Finland introduced the Lumia 710 using the Windows platform via KT, the nation’s No. 2 mobile carrier. However, the results were disappointing with less than 3,000 sold, according to KT officials.

Microsoft ran big promotional campaigns to lower inventories. “Despite cash-burning marketing campaigns, Microsoft failed to sell more Lumias,” said a KT official.

“Against bad memories of Omnia’s failure, Samsung’s Galaxy S3 smartphones which use Google Android as the main platform is selling well. It’s going to be tough for Samsung to heavily invest its resources on a Windows platform,” said another Samsung official.

Samsung plans to release a 5-inch Android phone next month — another addition to the Galaxy S3 and Galaxy Note2.

LG in talks with Google

LG Electronics also plans not to introduce smartphones using Microsoft’s Windows software. Rather, the Seoul-based consumer electronics giant is in talks with Google for LG’s first Google reference smartphone.

Its mobile chief Park Jong-seok made it clear that the company isn’t considering releasing a smartphone that uses Windows as the main platform and stressed that ties with Google are strengthening.

LG released various Windows-available products by partnering with Microsoft. But no mobile is out after LG released Windows’ 7.5-version Mango phone.

``LG teamed up with Google for the development of Google’s next Nexus smartphone, which may be out later this month,’’ said an LG source, asking not to be named. The name of the upcoming phone is tentatively set as ``LG Optimus Nexus.’’

Jinny Lee, a spokeswoman for LG Electronics, declined to comment, while Lois Kim, the head of communications for Google Korea, wasn’t available for comments.

The agreement comes as LG Electronics is showing signs of recovery of in its smartphone business with help from Google software. Officials and analysts say the reference model will help LG Electronics boost its brand and technology level.

``Because LG feels a sense of urgency to improve its smartphone business, more resources and budgets are allocated for devices using Google’s Android software as Android is the right answer to actively respond to consume demand,’’ said the LG source.

LG’s mobile communications unit, which is dominated by its cell phone business but also houses its network operations, reported second quarter sales of $1.99 billion a decline of 28.5 percent year-over-year. The division also posted an operating loss of $49.6 million, LG said in a filing to the Korea Exchange.