By Timothy W. Martin
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (November 21, 2018).
SEOUL -- Samsung Electronics Co. is planning a major
technological upgrade for its 10th anniversary flagship phones next
year, including next-generation 5G network speeds, bigger screens
and more cameras, according to people familiar with the matter.
As with rival Apple Inc.'s 10th anniversary iPhone offerings
last year, Samsung's 10-year reboot of its premium smartphone
lineup is seeking to dazzle consumers with more ambition than in
years past, these people said, part of a bid by the South Korean
technology giant to reverse a recent sales slump.
Samsung, the world's largest smartphone maker by volume, is
preparing three versions of its next flagship Galaxy S10
smartphone, with displays that range in size from 5.8 inches to 6.4
inches, the people said, versus two variants in previous years.
Those three phones are set to debut in February next year, they
added.
In addition, the South Korean technology giant is developing a
fourth variant of the Galaxy S10 that will be 5G-enabled and is
internally code-named "Beyond X," some of these people said.
The 5G phone, slated for a spring release in the U.S. and South
Korea, would sport an even larger screen, measuring 6.7 inches
diagonally, and pack in a whopping six cameras -- two in the front
and four in the back, these people said, which promise richer
photos and better spatial perception.
Apple's latest top-end iPhone, by comparison, includes three
cameras, two on the back and one on the front.
A Samsung spokeswoman declined to comment.
After several years of declining sales of smartphones, its
biggest moneymaker for many years, Samsung needs a big hit next
year.
The company's devices account for one out of every five
smartphones shipped globally, but it suffered a major handset sales
tumble this year. The smartphone's overhaul will test consumers'
willingness to ditch their years-old devices for ones that offer
flashier features -- for a higher price tag.
It is an industrywide problem. Global smartphone shipments slid
8% from a year earlier for the three months ended Sept. 30, the
fourth straight quarter of declines as consumers hold on to their
devices longer, according to Strategy Analytics. Samsung shipments
struggled even more than the industry average, declining 13% during
that stretch.
Apple in recent weeks slashed production orders for all three of
the iPhone models it unveiled in September, The Wall Street Journal
reported Monday, due to lower-than-expected demand.
"There are no signs of recovery for the smartphone industry
currently," said Tom Kang, a Seoul-based analyst at Counterpoint
Research.
To stage its comeback, Samsung saved up several new features to
set its 10th anniversary Galaxy S smartphone apart.
Samsung is planning a mid-February event where it will unveil at
least the feature-heavy 5G Galaxy S phone, according to a person
familiar with the matter.
The handset's release date would be pegged to whenever wireless
carriers could launch 5G service, according to people familiar with
the matter, which is expected by next spring.
Samsung has held discussions with Verizon Communications Inc.,
AT&T Inc. and T-Mobile US Inc., as well as large South Korean
carriers, though no final decisions have been made, according to
these people. Samsung is in discussions with Verizon about a
potential exclusive distribution arrangement, though the terms and
length of that arrangement aren't yet final, some of these people
said.
With 5G, Samsung is expected to enjoy a sizable lead over
Apple's iPhone, which analysts forecast won't be capable of
supporting 5G until 2020.
The three Galaxy S10 handsets scheduled for an earlier release
than the 5G phone bear the internal code names "Beyond 0," "Beyond
1" and "Beyond 2," according to people familiar with the
matter.
They would each have between three and five cameras in total,
based on current plans, according to one of these people.
A feature considered for some phones is "reverse wireless
charging," in which a Samsung handset could be used to recharge
other devices by placing them together, according to people
familiar with the matter.
The timing, design and phone features for all the devices could
change since decisions are still being finalized, according to
people familiar with the matter.
Separately, Samsung is also set to release early next year its
first ever foldable-screen device, which opens like a book and
boasts a 7.3-inch display. Internally, Samsung executives are
debating the foldable phone's name, with "Samsung Flex" and the
"Galaxy Flex" emerging as two candidates, though the decision is
far from final, according to a person familiar with the matter.
But even with the new launches, Samsung will face challenges in
a smartphone industry dealing with consumers holding on to their
devices longer and economic uncertainty brought on by global trade
turmoil, analysts said.
"Everyone is being affected by some similar market forces," said
Melissa Chau, associate research director at International Data
Corp., a market researcher. "Overall volumes will decline for
everyone."
--Sarah Krouse and Drew FitzGerald contributed to this
article.
Write to Timothy W. Martin at timothy.martin@wsj.com
(END) Dow Jones Newswires
November 21, 2018 02:47 ET (07:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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