For long, Samsung has been rather pretty closed as a company. It would manufacture most of its hardware and software on its own. But with the rapidly changing paradigms of the mobile world, the company has come to realize that it may have to go out of its own box to stay abreast of the changes. And for that, if it had to acquire other mobile companies, it will.
Samsung seems to have learned that software is the key to dominance in the smartphone market, a lesson iPhone may well have taught. And for that reason, the company is now working hard on its software, trying to get talented employees from other countries as well.
According to the president of Samsung’s very profitable mobile business, J.K. Shin, “The technology industry is growing very quickly and it is too much of a burden to try to do everything in-house. There are many qualified workers from India that are very skilled in software. And there are small companies that we can acquire that have good research and development capabilities.”
When competing in the global arena, it was only a matter of time before Samsung came to this realization. While the company has the potential to manufacture its own hardware, it can not concentrate on a whole lot of fronts at the same time and give them the due attention they require. And that is why, Mr. Shin stated that if the need be, Samsung will go on to acquire other companies which may help it in the business.
Samsung has only recently attained the status of being the largest handset vendor in the world, overtaking Nokia. But this status comes with a lot of challenges. Specifically, in the realm of smartphones, iPhone still beats Samsung’s Android devices. And to counter that, Samsung has to persistently improve the software of its smartphones, something it has attempted to do in Galaxy S III.
This is essentially leading the company to a more diverse and multicultural facet, which is a good thing indeed. The company’s mobile business in South Korea now hosts a lot of foreign workers, including software engineers from India and Pakistan. And this may bring Samsung the very edge it requires, in terms of software, to beat the rival iPhone.
Source: Wall Street Journal
News Courtesy: BGR
Image courtesy: Bloomberg News
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The emphasis may not just trigger from the importance of software for creating extra-ordinary user experience. Software is also about good profit margins. As to acquisitions, they usually give access to untapped markets and/or IP rights.