Samsung CEO Calls for Software Improvements

June 18th, 2012 by simran Leave a reply »

Samsung Electronics Co.’s 005930.SE -3.49% 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 005930.SE -3.49% 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 +0.45% 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 plans 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 +0.98% maker of the Android operating system, announced its plan to acquire Motorola Mobility Holdings Inc`.

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 Samsung staff during a meeting 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.

Source:http://online.wsj.com/article/SB10001424052702303703004577473580317557476.html?mod=googlenews_wsj

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