Samsung’s First Curved Smartphone Moves Toward Bendable Display

Samsung’s First Curved Smartphone Moves Toward Bendable Display

Samsung Electronics Co. (005930) will sell what it called the world’s first smartphone with a curved display as the largest handset maker moves toward devices with bendable screens in its competition with Apple Inc. (AAPL) The Galaxy Round, with a 5.7-inch (14-centimeter) display, will go on sale in South Korea today for 1,089,000 won ($1,011), Samsung said in an e-mailed statement yesterday. The 7.9-millimeter thick device will only be available in the Suwon, South Korea-based company’s home market and in one color: brown.The Round joins the Galaxy Gear smartwatch, the Galaxy Golden smartphone with a clamshell design, the flagship S4 and an upgraded Note among devices introduced this year as Samsung offers products at multiple price points to maintain sales growth. Amid fresh competition from the latest iPhones, Samsung is expanding its handset lineup into new shapes and sizes as it works on technology to produce flexible screens.

“This phone signifies something that is much more important,” said Warren Lau, an analyst at Kim Eng Securities Ltd. in Hong Kong. “In the next 18 months or so, we could see Samsung launching foldable display devices. That is going to be a game changer.”

That could see a 5.5-inch smartphone unfold to an 11-inch display and help create a new market, Lau said.

In January, Samsung showed a flexible organic light-emitting diode, or OLED, display that can bend as it plays images and said it has “various mobile application opportunities,” according to a statement at the time. The material is composed of thin plastic instead of glass.

Curved Televisions

The Galaxy Round’s curved display is designed to make the phone screen viewable from different angles and be more comfortable to hold in a user’s hand, Samsung said.

“The way we look at foldable displays is it could totally replace all the existing smart devices,” Lau said. A foldable display device “could destroy a tablet market or a notebook market,” he said.

Samsung started selling 55-inch curved TVs using organic light-emitting diodes for about $13,500 in its home market in June.

Last month, Samsung released the Galaxy Gear wristwatch device that can make phone calls, check e-mails and take photos. Cupertino, California-based Apple also has a team of designers working on a watch-like device, two people familiar the matter said in February.

The first companies to sell devices that multitask could lock customers into their platform and boost device sales, with researcher Strategy Analytics expecting 500,000 Galaxy Gears to be shipped this year.

Apple Dispute

Samsung shipped about 32 percent of smartphones worldwide in the second quarter, more than twice its nearest competitor, Apple, according to data compiled by Bloomberg.

The company announced the new curved phone a day after U.S. President Barack Obama decided not to veto a ban won by Apple in a patent-infringement dispute. The South Korean company asked Obama to overturn the ban ordered by the U.S. International Trade Commission on public policy grounds, the same relief the president gave Apple in August from an order barring imports of the iPhone 4S.

The company last week reported record third-quarter operating profit of 10.1 trillion won as an expanded range of mid-priced smartphones captured sales in China and India.

Samsung is also the world’s biggest maker of TVs and chips. The A7 processor inside Apple’s new iPhone 5s was made by Samsung, according to a teardown of the handset by IFixit.

To contact the reporters on this story: Jungah Lee in Seoul at jlee1361@bloomberg.net

Samsung Unveils Curved Smartphone in Challenge to Apple

Samsung Electronics Co. (005930) will start selling what it called the world’s first smartphone with a curved display as the largest handset maker adds another device to help win users from Apple Inc. (AAPL)

The 5.7-inch (14 centimeter) Galaxy Round will go on sale starting tomorrow in South Korea and cost 1,089,000 won ($1,010), Samsung said in an e-mailed statement today. The 7.9 millimeter thick device will only be available in the Suwon, South Korea-based company’s home market and comes in brown.

The Round joins the Galaxy Gear smartwatch, the Galaxy Golden smartphone with a clamshell design, the flagship S4 and an upgraded Note among devices introduced this year as Samsung targets products at multiple prices to maintain sales growth. Amid fresh competition from Apple’s latest iPhones, Samsung is expanding handsets into new shapes such as the curved design as it works on technology to produce flexible screens.

“This phone signifies something that is much more important,” said Warren Lau, an analyst at Kim Eng Securities Ltd. in Hong Kong. “In the next 18 months or so, we could see Samsung launching foldable display devices. That is going to be a game changer.”

That could see a 5.5-inch smartphone unfold to an 11-inch display and be part of a brand new market, said Lau.

In January, Samsung showed a flexible organic light-emitting diode display that can bend as it plays images and said it has “various mobile application opportunities,” according to a statement at the time. The material is composed of thin plastic instead of glass.

Curved Televisions

The Galaxy Round’s curved display is designed to make the phone screen viewable from different angles and be more comfortable to hold in a user’s hand, Samsung said.

Samsung started selling 55-inch curved televisions using organic light-emitting diodes for about $13,500 in its home market in June.

Last month, Samsung released the Galaxy Gear wristwatch device that can make phone calls, check e-mails and take photos. Cupertino, California-based Apple has a team of designers working on a watch-like device, two people familiar the matter said in February.

The first companies to sell devices that multitask could lock customers into their platform and boost device sales, with researcher Strategy Analytics expecting 500,000 Galaxy Gears to be shipped this year.

Apple Dispute

Samsung shipped about 32 percent of global smartphone deliveries in the second quarter, more than twice its nearest competitor, Apple, according to researcher IDC.

The company announced the new curved phone a day after U.S. President Barack Obama decided not to veto a ban won by Apple in a patent-infringement dispute. The Korean company asked Obama to overturn the ban ordered by the U.S. International Trade Commission on public policy grounds, the same relief the president gave Apple in August from an order barring imports of the iPhone 4S.

The company last week reported record third-quarter operating profit of 10.1 trillion won as an expanded range of mid-priced smartphones captured sales in China and India.

Samsung is also the world’s biggest maker of chips and televisions.

The A7 processor inside Apple’s new iPhone 5s was made by Samsung, according to a teardown of the handset by IFixit.

To contact the reporter on this story: Jungah Lee in Seoul at jlee1361@bloomberg.net

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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