Samsung Beats IPhone to China With New Galaxy Device This MonthJungah Lee
Samsung Electronics Co. will start selling its big-screen Galaxy Note 4 smartphone in China this month through all three state-run carriers, getting a head start on the Apple Inc. iPhone 6 waiting for government approval.
Samsung will sell the Note 4 in China by Sept. 30 after an initial release in South Korea on Sept. 26. The device, which has a 5.7-inch screen, will be sold through China Mobile Ltd., the world’s largest carrier, at 5,199 yuan ($848). The carrier’s website didn’t offer details about pricing based on different monthly plans.
The world’s largest maker of smartphones is releasing the Note 4 sooner in China than originally planned amid a continuing decline in shares because of increasing concerns about the company’s deteriorating earnings. China’s carriers are reducing their subsidies for new devices, and Apple said Sept. 22 it sold a record number of the iPhone 6 and iPhone 6 Plus during their debut weekend.
“The recent business condition is seen as temporarily difficult,” Lee Don Joo, president of the strategic marketing office at Samsung’s mobile business, said today. “There are some subsidy cut movements detected in overseas markets as well, so the overall market may shrink a bit and may have a temporary impact.”
Samsung fell for a third straight day today in Seoul trading. Shares declined 1 percent to 1,150,000 won, extending its drop to 16 percent this year, wiping out about $31.4 billion from Samsung’s market value.
Analysts have lowered their estimates for operating profit in the third quarter by 17 percent in the past four weeks to 6.09 trillion won ($5.9 billion), according to data compiled by Bloomberg.
The Suwon, South Korea-based company unveiled a pair of large-screen Note smartphones on Sept. 3, including the Edge with a display extending down the side.
Samsung will release the Note 4 in South Korea starting Friday at 957,000 won ($922) and will start global sales of the 5.6-inch Note Edge in the fourth quarter of this year, Lee said. The Edge allows users to read messages, news and stock tickers from an angle by extending the display beyond the front of the phone.