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Samsung Electronics forecasts drop in profits

Posted by Rattana_S On April - 8 - 2014 ADD COMMENTS

Samsung Electronics, the world’s biggest maker of TVs and mobile phones, has forecast a drop in profit for the second quarter in a row.

It expects to make an operating profit of 8.4 trillion won ($7.9bn; £4.8bn) for the January-to-March quarter, down 4% from the same period last year.

This follows a 6% decline in operating profit in the previous quarter.

The drop indicates the challenge faced by Samsung to boost its earnings amid falling prices of smartphones.

The success of Samsung’s Galaxy range of smartphones has been one of the biggest drivers of its growth in recent years.

But rising competition in the sector has seen vendors reduce prices to attract more customers, putting pressure on their profit margins.

One analysts said the firm may need to cut costs to sustain its profit growth.

“What Samsung needs to do this year for additional growth are things like cost reduction and reducing marketing costs,” said Greg Roh, an analyst with HMC Investment and Securities.

“In some sense, Samsung has no way to prevent a decline in its earnings without improving internal efficiencies.”

(Reuters) – Apple and Samsung return to federal court on Tuesday for opening statements in their latest patent battle, with the iPhone maker expected to present more detailed evidence in its attempt to win a U.S. ban on sales of several Samsung smartphones.

Apple Inc and Samsung Electronics Co Ltd have been litigating around the world for nearly three years. Jurors awarded the iPhone maker about $930 million after a 2012 trial in San Jose, California, but Apple failed to persuade U.S. District Judge Lucy Koh to issue a permanent injunction against the sale of Samsung phones.

A sales ban would be a far more serious threat to Samsung, which earned $7.7 billion in the quarter that ended in December. Samsung’s mobile division, which includes smartphones, generated operating profit of 5.47 trillion won ($5.1 billion).

The two companies are set to embark on another trial in San Jose over a fresh batch of Apple patents, which cover iPhone features like slide to unlock and search technology. Apple is seeking to ban sales of several Samsung phones, including the Galaxy S III.

Likewise, Samsung claims Apple violated two of its patents, and is seeking to ban the iPhone 5. Samsung’s phones use the Android operating system developed by Google Inc.

In rejecting Apple’s previous bid for a sales ban, Koh wrote that a consumer survey Apple submitted in the 2012 trial likely inflated the value that customers place on the smartphone features in dispute, meaning Apple does not merit an injunction. Apple is appealing that decision.

Apple has hired the same marketing expert to conduct a new consumer survey for the current trial. But this latest effort contains additional analysis about how Apple’s patented features drive consumer demand, according to court filings.

While the prior survey only concluded that there was general demand for the patented features, the new study attempts to quantify the proportion of customers Samsung would have lost if its smartphones did not contain those features, court filings show.

Samsung tried to stop Apple from presenting that evidence to the jury, arguing that the methodology was unsound. However, Koh agreed in a February ruling to allow Apple to use the study.

The trial is expected to last until early May.

The case in U.S. District Court, Northern District of California is Apple Inc vs Samsung Electronics Co Ltd, 12-630.

(Reporting by Dan Levine; Editing by Richard Chang)

How would you change the Nexus 10?

Posted by Nuttapon_S On March - 31 - 2014 ADD COMMENTS

It’s a 10.1-inch tablet with a 2,560 x 1,600 display, and that’s all we need to know. Google’s Nexus 10 may have been the Galaxy Tab that everyone wanted, but what did our reviewer think of it? Sadly, strapping a laptop-class display onto a tablet doomed the device’s battery life, making it last around three hours less than its closest rivals. Did that deter you from buying one? We doubt it, so why not share your feelings about this product over on our forum?

Though it got beat to the punch by arch-competitor LG, Samsung has just released its debut smart LED bulb, literally called the “Smart Bulb.” It looks nothing like the multi-tiered model we saw at the FCC, but retains the Bluetooth-only spec — unlike the WiFi-based Philips Hue and LG’s WiFi/Bluetooth Smart Lamp. That’ll give you direct control of up to 64 bulbs via a smartphone app, similar to how theLumen bulb works. However, you’ll need a ZigBee Bluetooth hub for home automation, and there’s no word yet if that’ll be included. The bulb will dim down to ten percent power with a color range between warm and cool white, meaning the disco-like tricks of the Philips and Lumen models are out. There’s no word yet on the price, but Samsung said the Smart Bulb would last a prodigious 15,000 hours or around 10 years under normal usage. Given that, if it’s in the same $32 range as LG’s bulb, we think we can swing it.

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