InfoAnda - Samsung challenge: sold the phone, how to keep the customer |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

US Army to court martial soldier in Japan | 26 November 2008
Sofia Coppola, Aronofsky lead Venice film lineup | | 29 July 2010
Far East Movement Kicks Off Their "Up In The Air" Tour | 9 September 2010

Suspect On Paris Hilton's House Burglary Arrested | 24 January 2009

Forum Views () Forum Replies ()

Read more with google mobile : Samsung challenge: sold the phone, how to keep the customer |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Breakingviews Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Slideshow Follow Reuters Facebook Twitter RSS YouTube Read Bill Clinton basks in spotlight, gives rousing defense of Obama | 3:38am EDT Analysis: Clinton shows he is Obama's most valuable weapon 2:17am EDT Powerful quake hits Costa Rica, two dead | 05 Sep 2012 Judge upholds Arizona "show-your-papers" measure in mixed ruling 1:17am EDT REFILE-UPDATE 1-Bank manager kidnapped, forced to rob Los Angeles bank 05 Sep 2012 Discussed 155 Exclusive: Pentagon threatens legal action over bin Laden book 132 Romney tells voters to move on from Obama disappointment 81 Obama, Democrats to make their case as convention opens Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Profile: Bill Clinton Former President Bill Clinton will speak at the Democratic National Convention. Slideshow Inside Quebec A look inside Canada's French-speaking province. Slideshow Samsung challenge: sold the phone, how to keep the customer Tweet Share this Email Print Related News Samsung to review 250 Chinese suppliers for labor violations Mon, Sep 3 2012 From smart to genius: will design define future gadgets? Fri, Aug 31 2012 Samsung triumphs over Apple in Japan patent case Fri, Aug 31 2012 Samsung steals march on Nokia with first Windows phone Thu, Aug 30 2012 Samsung strikes new Note after Apple suit Wed, Aug 29 2012 Analysis & Opinion Apple and the burden of being a behemoth Related Topics Tech » Media » iPad » 1 of 2. A man looks at the Samsung Galaxy S III smartphone during a press preview day before the official start of the IFA consumer electronics fair in Berlin, August 30, 2012. Credit: Reuters/Tobias Schwarz By Jeremy Wagstaff, chief Asia technology correspondent Thu Sep 6, 2012 4:01am EDT (Reuters) - Samsung Electronics has built global leadership in mobile phones, but in a fickle industry looks more vulnerable than its nemesis Apple Inc without an 'ecosystem' - software, services, content and customer support - to keep its users loyal. "They need to move out of that mentality of just selling people a device," says Rachel Lashford, Singapore-based managing director of mobile for Canalys, a consultancy. "They need to get their head around the idea that they're no longer just a hardware company." The ecosystem standard has been set by Apple: offering mobile users downloadable programs and content - such as iTunes for music and the App Store for programs - which are best, and often only, accessible via and across Apple devices. This binds users to Apple and makes them more likely to buy another Apple device - an iPhone user buying an iPad, say. "Apple's greatest achievement beyond the design of the device has been the development of its ecosystem," said Scott Bicheno, UK-based senior analyst at Strategy Analytics. While Apple has been slow to make some of these services available in some parts of the world - it only recently unveiled its iTunes Store across much of Asia, nine years after its U.S. launch - it is still ahead of rivals. Samsung's efforts to build something similar have been at best halting. The latest version of Music Hub, a service combining downloaded music and streaming, is only available for users of its new top-end phone, the Galaxy S III. Early reviews are mixed. It is also building an ad network via a partnership with OpenX, a service that Mar Pages, Singapore-based principal at Delta Partners, likens to Apple's iAd. These services allow application developers to embed adverts in their software. Samsung said Music Hub, which is available in close to three dozen countries, will be expanded to other markets and also be available in more smartphones as well as Internet-enabled televisions and computers. "Samsung is doing our best to offer best content and services to our customers... We are in partnership with leading global developers to cooperate in content and application development and plan to further improve our offerings," it said. DILEMMA But there's only so much Samsung can do to build on top of Google's open platform Android operating system, which already offers users well-established services such as Dropbox, which moves files seamlessly between devices and users. "I wonder what Samsung could do which would offer conspicuous value over the likes of Dropbox," said Strategy Analytics' Bicheno, noting Apple's ecosystem is largely a way to sell hardware. "This is the dilemma they face." It wasn't always so. In 2010, Samsung launched its own mobile operating system called bada, and wooed developers and users with tools and an app store. Bada has steadily gathered users but accounts for less than 3 percent of devices shipped, according to technology consultancy Gartner. Android accounts for nearly two thirds. The company's efforts to make bada more popular were hampered by its own focus on hardware sales, said Karthik Srinivasan, who worked as a product manager at Samsung's Media Solutions Center in Bangalore. His team would submit proposals for services and apps only "to be stumped when the question came back from Korea: How many more devices can you sell next year based on these services?" he told Reuters. Samsung has not abandoned bada, but its emphasis on Android alienated its fan base and developers. "The top management may have had focus," said Srinivasan, who quit the company last year, "but it was dispiriting to see the company was making very good Android devices and promoting them more than bada ones." Samsung said in January it planned to merge its operating system with Tizen, an open source platform promoted by Samsung and chipmaker Intel Corp. It hasn't issued a press release about bada since November 2011. OLYMPIC SPRINT Samsung can be fast and decisive where it senses an opportunity that fits its broader strategy of brand building. When Bangkok-based start-up Fingi turned to Galaxy smartphones for its hotel concierge service this year, Samsung's local operation was quick to help. Fingi's software allowed a Thai hotel to offer guests a Galaxy on check-in which they could use to open doors, control air conditioning, lighting and TV and order room service. When Samsung's UK operations heard about Fingi they decided to use it to help promote the Galaxy S III at the London Olympics, said Carl Rubin, Fingi's vice president of business development. Within weeks, he said, Samsung had struck deals with hotels and helped set up the technology to make it work. "They turned on a dime and got this done," he said. The Fingi initiative made use of the near-field communication chip inside some Galaxy devices, a hint of where Samsung sees more opportunities. Delta Partners' Pages says Samsung recently hired one of Visa Inc's mobile payments executives and patented the words "Samsung wallet." SAMSUNG STORES But its efforts to build a direct and binding relationship with users in the way Apple has done have been less convincing. It has flagship stores in several countries which share Apple's light tones and open invitations to play with devices, but a recent lunchtime visit to Singapore's main store saw only a handful of visitors and a couple of staff. A cleaning woman was mopping the floor. Singapore has also pioneered improved customer service where staff will pick up an errant device from the user and offer a loan unit while it's under repair. But a member of staff at one of the two service centers said loan units weren't always available. Similar issues can be found online. An important part of keeping mobile users happy is ensuring their device's core programs are up to date. The most popular feature on one Samsung fan website, SamMobile, is a twitter feed alerting users to when such software updates are due. It has 20,000 followers and is updated more than a dozen times a day. Samsung's official equivalent feed has only 3,307 followers, and was last updated in December. The owner of SamMobile, Rotterdam-based Danny Dorresteijn, says he has tried in vain to forge a closer relationship. "Samsung is not a big fan of us," he said. But he's hopeful. "Everything takes time." Indeed, there are signs that Samsung is learning it needs to use social media better. When two Indian bloggers flown by Samsung to a technology show in Berlin last week complained online that they had been stranded because they refused to wear a Samsung uniform and tout Galaxy phones, the company was quick to apologise. Last month, Samsung hired Damien Cummings, Dell's former Asia online director, for a new social media marketing role. In a blog post, Cummings said he aimed to "help transform Samsung into a digital powerhouse." BRAND LOYALTY Samsung does appear to be slowly winning people over. Surveys of users in Britain and the United States by Strategy Analytics concluded that while 51 percent of Apple users would replace their Apple device with an Apple device, they were only slightly less likely to switch and buy a Samsung. A bigger problem for Samsung, says David Mercer, the co-author of the Strategy Analytic surveys, is that there's little sign that user loyalty to Samsung phones translates to buying other Samsung products. A Samsung phone user may buy another Samsung phone, "but they won't automatically buy a TV," he says. Given that Samsung is the world's largest TV maker, that's a significant miss. "That indicates those important branches of the company have continued to do their own thing," says Mercer. It also raises questions about Samsung's efforts to build an ecosystem beyond mobile phones to embrace other parts of its consumer electronics business, especially so-called smart TVs - Internet-connected TVs that can work more like computers, running apps, storing and downloading content and, crucially, interacting with other consumer devices. It's not that Samsung isn't busy working with TV stations and other service providers to build smart TV services. In the past week, it has announced deals with TeliaSonera and France TV in Europe, and Alt Media Sdn Bhd in Malaysia. The problem, Mercer says, is that consumers need to be convinced its useful. "Once they have it, they love it," he says. At the heart of Samsung's challenge is to weave these products together with content and services that make it hard for users to jump elsewhere when they tire of their devices. While Samsung has long mastered engineering, it's only recently woken up to the fact that users want something more. "Samsung will start to realise, if they haven't already, that they have to lock people in with some kind of ecosystem," said Napoleon Biggs, head of digital integration for Asia at Fleishman-Hillard. "How else will you keep people's loyalty?" (Reporting By Jeremy Wagstaff, with additional reporting by Miyoung Kim in SEOUL; Editing by Ian Geoghegan) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Thursday, 6 September 2012
Exclusive: Russian firm to halt Iran ship work as pressure grows |
Turkish jets hit Kurdish militant positions: sources |
Hundreds of Afghan soldiers detained, sacked for insurgent links |
Israeli air strike kills three Gaza militants |
Mali requests military assistance to free north |
Nigeria lifts ban on airline after crash killed 159 |
Northern Ireland leaders hold crisis talks to halt rioting |
Samsung challenge: sold the phone, how to keep the customer |
Motorola unveils three phones for Verizon Wireless |
Amazon to launch new weapon in tablet battle |
Alcatel board to tackle restructuring next week: sources |
Selena Gomez gets raunchy in shocking new movie |
Country singer Eric Church gets leading five CMA nominations |
Stars, politics set to stir up Toronto film festival |
Powerful quake hits Costa Rica, no deaths |
Clinton seeks to boost democracy in Asia's newest country |
Blast at Turkish ammunition dump kills 25 soldiers |
Human rights group alleges U.S. waterboarded Gaddafi opponents |
Israeli forces kill three militants in Gaza Strip |
Girl found alive in car hours after French car killings |
Lonmin, unions sign South Africa mine peace deal |
Colombia names team for peace talks with FARC rebels |
Support for Greek far-right party surging, poll says |
South Korea probes Samsung over Apple antitrust complaints |
Microsoft to hire 1,000 in China over next year: executive |
Nokia's new Windows phones, key to its future, disappoint |
Sony mobile customers emails, names hacked in China |
Samsung challenge: sold the phone, how to keep the customer |
Kobo to launch new tablet device, more compact e-reader |
MasterCard takes step towards first Myanmar credit card |
Muslim Arab-American Green Lantern adds diversity to superheroes |
Insight: In Aleppo, jets vs. rifles, as civilians despair |
Afghans use culture guides to cut insider attacks |
Migrant boat sinks off Turkey, children among 60 dead |
British terrorism suspect may face private trial |
Trial of Gaddafi son likely to be delayed after spy chief arrest |
U.S. targets assets of Mexico drug boss Guzman's second wife |
Syria slams Egyptian leader's speech as interference |
Colombia's FARC rebels to ask government for ceasefire |
Nokia cuts prices of older Windows phones, shares fall |
Oracle-Google judge ends probe into paid bloggers |
Needham downgrades Seagate, cuts price target on Western Digital |
Ex-NBC anchor Tom Brokaw taken to hospital for lightheadedness |
Redford acts in, directs thriller about ex-radical |
Rock 'n' roll fantasy camp beds down in Las Vegas |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01