Shin expects S6 to raise stock prices
By Kim Yoo-chul
BARCELONA ― Samsung Electronics mobile chief Shin Jong-kyun is confident its new handset, the Galaxy S6 (GS6), will boost the company’s stock price.
Shin said the handset would help the company take back market share lost to Apple’s iPhone 6.
Samsung Electronics’ stock price jumped 4.86 percent Monday, the first trading day following the release of the handset. The stock underwent a modest correction on Tuesday, as it closed down 0.35 percent, or 5,000 won, at 1,418,000 won.
But Shin is confident the stock will gain further as the GS6 bolsters the company’s earnings.
“The stock is likely to gain further,” he said on the sidelines of the Mobile World Congress (MWC). “The GS6 is receiving a warm response from our major clients. We've taken one small step by holding the unpacking event. We have a long way to go.”
Coming on the heels of the company’s first fall in market share in the high-end smartphone segment since 2010, the GS6 sports a stylish design and improved specifications including wireless recharging and Samsung Pay.
Shin said the Galaxy S6 Edge was the result of the company’s efforts to make an innovative product.
“I’m confident that the Galaxy S6 Edge is a product that showcases Samsung’s innovation in the smartphone manufacturing industry,” he said. “The Galaxy S6 and Edge will achieve a considerable market share in the high-end handset segment.”
The GS6 had a genuine premium look with metal and glass casing, he said.
“On the functionality side, we are most intrigued by Samsung Pay ― incorporating functions from the recently acquired LoopPay,” said Shin.
Regarding concerns about the possible copying of its new handset, he said its smartphone business would not be hurt by any Galaxy clones.
“It's true that the smartphone industry has seen a lot of knockoffs,” Shin said. “But Samsung is apparently safe from such threats as it has been consistent in innovating its products with advanced technologies that others can’t easily follow.”
Shin said its partnership with U.S.-based mobile chipset giant Qualcomm remained strong despite its decision to use its in-house Exynos mobile processors, a move aimed at reducing the company's reliance on the San Diego-based outfit.
“Samsung previously used more Qualcomm mobile processors,” he said. “But we are flexible. If Qualcomm chips are good enough, then we will use them. Samsung always uses the best-quality components and materials to differentiate our products from those by rivals.”
Samsung plans to sell the GS6 from April 10 and the CEO said the sale of the latest product would be better than its predecessor.
“I am so impressed and touched by the warm reviews from our teams and employees about the product,” Shin said. “We've tried our very best. Let's see what happens.”