Samsung to optimize multiple chipset platforms to enhance its edge in entry-level smartphone segment, say sources

Samsung Electronics will optimize chipset solutions from Qualcomm, Broadcom and ST-Ericsson to enhance its competitive edge in the entry-level to mid-range smartphone segment so as to compete effectively with rising rivals including Huawei Device, ZTE, Lenovo, Sony Mobile Communications and LG Electronics, according to industry sources.

Although Samsung captured the top vendor title in the global smartphone market in 2012 with nearly a 30% share, the company has noted that demand for smartphones is expected to slow down in more mature markets in 2013, while price competition in the entry-level to mid-range segment will become keener.

A rising ratio of entry-level and mid-range models in global smartphone sales has given an edge to China-based smartphone vendors as well as Sony Mobile and LG Electronics, since these vendors are able to roll out low-cost models with higher price/performance ratios than comparable models launched by Samsung, the sources indicated.

However, Samsung is unlikely to sit idle to let vendors dent its market share, and instead it will further strengthen its cooperation with Qualcomm, Broadcom and ST-Ericsson for the rollout of low-cost smartphone models, the sources added.

Samsung has adopted ST-Ericsson's NovaThor platform for a number of its models including the Galaxy S III, Galaxy S Advance, Galaxy Beam and Galaxy Ace 2. It also adopts Broadcom's solutions for its Galaxy S II Plus and Galaxy Y Duos, while using Qualcomm's platforms for its Galaxy S Duos and Galaxy mini 2.