Samsung Boosts Capital Spending

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July 26 (Bloomberg) -- Samsung will invest $18 billion in its memory-chip and display businesses this year as the world’s biggest smartphone maker tries to ward off slowing demand for high-end devices such as its Galaxy S4. IDC Research Chief Research Officer Crawford Del Prete speaks with Scarlet Fu on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Samsung stumble or problem or is this a google-android hiccup?

No, this is absolutely samsung is going to be experiencing greater degrees of competition.

The android, you know, platform, while it's seeing new levels of competition from places like windows phone, and obviously i.o.s., but android is quite healthy and doing quite well.

It's really about samsung needing to step up their game as you get other suppliers that are now competing with the same platform.

Understand you have google coming up with its phone pretty soon.

This is a big, big threat to samsung, isn't it?

Yeah, absolutely.

Again, in the most recent quarter, what we saw is over 100% growth for companies like l.g. and that's on the strength of the nexus 4 product.

We saw other companies like sony continuing to make very, very strong bids.

So we're seeing other suppliers coming in and as you know, google purchased motorola.

They're going to make a big play with the moto x. they're going to put muscle behind that, trying to make that another one of these iconic hero android products and we haven't even talked about the h.t.c. 1 which is again another company that's stepping up their game but doesn't really have the marketing air cover to drive through.

Arguably the most beautifully android phone ever created.

Who is positioning themselves best when it comes to attracting the emerging market consumer, the place where the smartphone market isn't as saturated as the united states?

Yeah, so, it's funny, i just did a swing through asia about three weeks ago and what's fascinating is that in these emerging markets, while sort of the old school is that that was the place where you kind of dumped your older inevent tore and very much what apple's -- inventory, and very much what apple's been doing, these consumers want the leading edge products.

So really what you're seeing is the very rich designs, the samsungs are pushing hard there, they will move in with things like the galaxy s-iii, their last generation.

And then you'll also see companies like glonovo, having 30% growth year over year.

Will you see them making huge pushes in those regions in order to gain meaningful market share and a real foot hold.

But my takeaway here is it's definitely -- it's becoming a leading-edge market.

We're definitely hearing about the chinese smartphone makers.

I haven't heard you mention blackberry yet, though.

Will this company still be around in a year?

Yeah, blackberry in some form will be around.

But the company is really struggling.

We saw a bit of a watershed moment here in the last quarter where nokia, who is clawing themselves bang, outshipped blackberry in the smartphone segment.

So that says that the nokia line is accelerating faster than what we're seeing blackberry on their new platform.

There's a lot of assets at blackberry, there's a lot of software assets, a lot of assets to manage multiple platforms.

So blackberry and the device bits, they could struggle and may continue to struggle.

We saw layoffs there yesterday.

But as an i.p.-rich software company, they could have a very interesting future.

The value remains in the patents.

Let's end with apple here.

Is the key to apple regaining its momentum, a lower-priced smartphone?

There are two keys in my opinion to apple regaining its momentum.

They definitely need to have a lower price product.

They also need to have a larger screen product.

When you see the points of these android products it's in that 4.5, 4.7 screen size.

And that is where your premium consumer wants to have that go-to device.

For emerging markets, they need to be able to take some more cost out and go lower end.

It's those two prongs that are going to bring the mojo and growth back to apple.

Big screens and lower prices.

This text has been automatically generated. It may not be 100% accurate.


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