-- Samsung Electronics' new CEO reiterates need to strengthen software division
-- CEO tells staff Samsung needs to strengthen dominance to secure "an
absolute lead"
SEOUL--Samsung Electronics Co.'s (005930.SE) new chief executive on
Monday reiterated the need for the company to beef up its software
competence in order to maintain its leading position in the technology
industry.
Over the past year, Samsung has emphasized the need to focus on
strengthening its proprietary software to help drive smartphone sales,
and estimates by analysts show Samsung surpassed Apple Inc. (AAPL) in
the first quarter to become the world's biggest seller of smartphones.
"A particular focus must be given to serving new customer experience
and value by strengthening soft capabilities in software, user
experience, design, and solutions," Kwon Oh-hyun said in his inaugural
speech.
The new CEO didn't disclose how much Samsung aims to spend on
strengthening its software division, but his message to boost its
relatively weak software arm is in line with the former CEO's stance.
The need to boost proprietary software took on new urgency after
Google Inc. (GOOG), maker of the Android operating system, announced
its plan to acquire Motorola Mobility Holdings Inc. (MMI).
Although Samsung has been allocating a sizable portion of its
resources to its mobile software platform division, the majority of
its smartphones continue to run on Android software because its Bada
mobile software platform hasn't been popular among global consumers.
As part of its efforts to bolster its mobile software platform, the
world's largest maker of flat TVs, memory chips, flat screens and
smartphones bought U.S.-based mobile content service provider mSpot
Inc. in early May.
Mr. Kwon, who has led Samsung's chip business since 2008 and its
display components business since last year, took the helm of the
world's largest technology firm by revenue earlier this month.
He told a meeting of Samsung staff Monday that the company's core
businesses must strengthen their dominance in technology and global
markets to secure "an absolute lead."
Samsung is in a series of legal tussles with the world's most valuable
company, Apple, which is both its customer and competitor.
Apple is the largest buyer of Samsung's chips and displays, but the
technology giants have been entangled in a global legal spat since
April last year, when Apple filed lawsuits against the Korean company
for allegedly copying designs of its iPhone and iPad products.
Samsung counter sued the U.S. company for using their wireless
technologies without paying royalties. So far, the companies have
around 30 patent litigation cases against each other in around 10
countries.
Write to Jung-Ah Lee at jung-ah.lee@dowjones.com
(END) Dow Jones Newswires
June 17, 2012 21:45 ET (01:45 GMT)
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