LG's new premium smartphone, the V10

A model shows LG's new premium smartphone, the V10, at a launch in Seoul on Thursday.

LG on Thursday unveiled the V10, the first in a new lineup of premium smartphones the company hopes will drag it out of the second league in the market.
The V10 will go on sale in Korea next Thursday and worldwide later.

Cho Joon-ho, head of LG's IT business division, has referred to the V series as being a "notch above" the current G series.

If the main selling point of LG's previous smartphones was their user-friendliness, the V series boasts more specialized functions, according to the company.

LG's smartphone business is barely breaking even at present and the electronics giant has placed all of its bets on the V10 to pull the company through tough times.

The V10 comes with 5 megapixel dual front-side cameras and a 5.7-inch dual-display. A secondary screen shows alarms and notices without obstructing the main display and can also be used to display the user's favorite apps.

LG desperately needs the V10 to do well. The company's smartphone division saw operating profit drop from W86.7 billion in the second quarter of 2014 to just W200 million in the same quarter this year (US$1=W1,177).

The poor performance stemmed from weak sales of the premium G4 smartphone, which hit stores in the first half of this year.

Samsung and Apple, the world's top two smartphone manufacturers, dominate the global market for premium smartphones, while Chinese players are increasing their shares of the market for cheaper ones. According to Strategy Analytics, LG accounted for a 5.2-percent share of the global smartphone market in 2013, but that fell to 4.9 percent in 2014 and to 4.2 percent this year.

Over the same period, LG's global rank fell from third to sixth as it was overtaken by Huawei, Xiaomi and Lenovo.

LG has priced the V10 at W799,700, which is around W100,000 cheaper than other premium smartphones.

Source : english.chosun.com/si...

Samsung makes a big step on mobile payment service

Samsung`s Executive Vice President Rhee In-jong had expected that Samsung Pay mobile payment service could be a game-changer but it is receiving a better-than-expected response. It is changing consumers lifestyle and purchase behavior rapidly and strongly, he said.

Samsung Pay will launch in the U.S. on September 28, its first overseas launch, and will head-on challenge Apples Apple Pay and Googles Android Pay. Samsung plans to expand its mobile payment service further to China, the U.K., Spain and elsewhere soon.

Amid intensifying war in the global mobile wallet market, Samsung Pay is a step ahead of rival services. Samsung Pay uses both near field communications that requires a separate device and magnetic secure transmission technology that works with magnetic stripe card readers, said Han Seul-ki, researcher at NH Investment and Securities. It carries both universality and convenience that cant be matched by Apple Pay that supports only near field communications and Android Pay. Near field communications device distribution rate is 1 percent in Korea and 5 percent in North America.
Helped by Samsung Pay effect, related parts suppliers and security certificate holders have become No. 1 beneficiaries and are continuing a rally in stock markets. According to Korea Stock Exchange, Korea Information Certificate Authority stocks surged 77.62 percent in just over a month, rising from 10,500 won (8.83 U.S. dollar) on August 21 to 18,650 won (15.68 dollars) on Tuesday. The firm offers finger print certificate service to financial firms partnering with Samsung Pay, and receives commission fees per payment.

Amotech, which manufactures modules for Samsung Pay, also saw its share price rise 41.49 percent over the same period, while Hansol Techniques that supplies wireless chargers embedding Samsung Pay system rose 22 percent. Payment settlement service firm Korea Information and Communication soared 21.52 percent on expectations that Samsung Pay micropayments will increase. Many people hesitate micropayment with credit cards, but micropayment will increase since as people can simply touch the smartphone on to the reader for Samsung Pay, said Park Jong-seon, director of mid to small cap stocks at Eugene Investment and Securities. Firms that get commission feeds per payment will become the main beneficiaries.

However, caution is required when investing in Samsung Pay-themed stocks as themed stocks are shares whose prices soar after being affected by a specific factor. Shares of security certificate firms and mobile security solution firms are surging just due to the reason that they could reap up sales if the mobile payment market expands even though they are not directly related to Samsung Pay. Korea Electronic Certification Authority, a certification authority similar to Korea Information and Communication, saw its shares skyrocket 200.77 percent. Initech, a parent company of Smartro that manufactures magnetic secure transmission devices surged 75.86 percent as a themed stock.
There are many indirectly related stocks that are expected to beef up stakes helped by the growth of the mobile payment market. But there is only a small number of stocks that can directly benefit, Korea Investment and Securities researcher Lee Seong-hyeok said. Their stocks can plunge on profit-taking trading.

Investors should also take cautious approach on primary beneficiary stocks and see how much sales they make from Samsung Pay, Park from Eugene Investment and Securities said. I would recommend investment in stocks with sound fundamental earnings based on business structure and stock levels.

Source : english.donga.com/srv...
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