Amid a struggle to maintain its largest Smartphone maker crown, Samsung Electronics Co Ltd (KRX:005930) has come up with a new Wi-Fi technology that allows up to five times higher data transmission speeds as compared to the existing Wi-Fi technology. The innovative technology is likely to affect other primary rivals including Apple Inc (NASDAQ:AAPL) in near future.
According to the South Korean company, its latest Wi-Fi technology would allow users to transmit up to 1GB data within 3 seconds and provide seamless streaming of high-definition videos. Kim Chang Yong, Samsung Research and Development Center Head, said, “Samsung has successfully overcome the barriers to the commercialization. New and innovative changes await Samsung’s next-generation devices, while new possibilities have been opened up for the future development of Wi-Fi technology.”
This announcement can help up the company pick up investor sentiments after an increasing competition in the Smartphone market from Apple Inc (NASDAQ:AAPL) and Chinese low-budget phone maker, Xiaomi. Apple is likely to release its all-new iPad on October 16 amid rumors of new operating system, Yosemite, for its Mac computers. Some experts are speculating lower-priced iPad Mini from Apple considering the fact that the company has been struggling to raise iPad sales in the past two quarters. If Samsung Electronics Co Ltd (KRX:005930) succeeds in incorporating this technology in its upcoming devices, it is likely to hurt Apple’s sales in near future.
Samsung is certainly gearing up to compete against its rivals and the South Korean company announced $14.7 billion investment on a new chip plant at its Pyeongtaek’s Industrial unit. This unit will help the company excel in its semiconductor business, although some experts are considering it as an alternative strategy from the company to hedge against its falling Smartphone market share.
Earlier, Samsung Electronics Co Ltd (KRX:005930) announced 60% decline in its quarterly profits during the July to September quarter. The largest Smartphone maker announced net operating profits of $3.8 billion and indicated a decrease in its high-end Smartphone shipments. Samsung has to spend additional marketing dollars to reach these figures and further reducing its operating profits.
Samsung Electronics’ five times faster Wi-Fi technology is a big threat for Apple Inc (NASDAQ:AAPL) who is the one of the leading companies in smartphone market.
This article has been written and edited by Prakash Pandey.