Android Powered Samsung 4G Tablet Hitting the Shelves This Year

Executive says handset maker aiming for double-digit smartphone market share in 2011.

Samsung Electronics Co., the world's second-largest cellphone maker by revenue, plans to launch a new Android-based tablet computer running on fourth-generation network technology later this year in its bid to differentiate itself in the increasingly competitive tablet market. "The race for 4G (fourth-generation) has already started," J.K. Shin, president of Samsung's mobile communications division, told Dow Jones Newswires in an exclusive interview."4G transition is inevitable particularly for tablets because it requires faster download speeds than smartphones to handle bigger volume content." The new tablet will be an evolution of and an enhanced version of its Galaxy Tab models, Shin said, without providing further details. After launching a 7-inch device in October last year, Samsung will begin selling in June tablets with bigger screens-an 8.9-inch model and a 10.1-inch model. The 10.1-inch Galaxy Tab, which will sell for between $499 and $599, runs on an upgraded version of the Android software called Honeycomb and features a faster dual-core processor and a two-megapixel front-facing camera. Shin's comments come as Samsung is embroiled in a lawsuit with Apple Inc., a major competitor in the smartphone and the tablet markets, but also Samsung's major customer when it comes to its component business. Earlier this year, Apple filed a lawsuit against Samsung alleging the Korean company copied the look and feel of its popular iPhone smartphones and iPad tablet. Samsung countersued alleging that the Cupertino, California-based company violated patents covering Samsung's cellphone transmission technologies. The company filed suits in the U.S., South Korea, Japan and Germany. "We didn't copy Apple's design. We have used many similar designs over the past years and it (Apple's allegation) will not be legally problematic," Shin said, hinting that the scale of the lawsuit could be extended though he didn't provide more details. Shin is also upbeat that Samsung will continue to gain more ground in smartphones. Samsung aims for a double-digit share in the global smartphone market this year and Shin said he expects smartphone shipment this year to meet the company's earlier guidance of 60 million units. The company aims for smartphones sales to exceed 20 million in the second quarter after selling around 14 million in the first quarter. According to market research firm IDC, Samsung gained a 10.8% share in the global smartphone market in the first quarter of this year, up from 4.3% a year earlier. Shin said Samsung may launch a third version of its Galaxy S smartphone in the first half of next year after launching a second-generation version called Galaxy S II last month. The Galaxy S II is slimmer and lighter than the first Galaxy S phone and is embedded with Google's latest Android software platform called Gingerbread. The company has said it plans to release the model in 120 countries by early June. So far, Samsung has sold around 1.3 million Galaxy S IIs globally in May, Shin said. Shin expects the average selling price of Samsung's cellphones to rise going forward thanks to higher smartphone penetration which will help boost the company's earnings in the coming quarter. Shin expects Samsung's mobile division to post similar earnings in the second quarter from the first quarter, when it logged on an operating profit of KRW1.43 trillion (US$1.32 billion) and an operating margin of 13.5%, the highest since early 2008. He also reiterated that higher-margin smartphones will account for 20% of the company's total handset shipments in the second quarter, up from 18% in the first quarter. As consolidation continues in the network gear space, Shin squashed market speculation that the Korean company might be interested in participating in merger and acquisition activity. He said the company isn't in talks to purchase Nokia Siemens Networks, the telecom equipment venture of Nokia Corp. and Siemens AG. Last month, The Wall Street Journal reported citing people familiar with the matter, that Nokia Siemens Networks is considering selling a controlling stake in the four-year-old venture and said that some telecom-gear makers, such as Alcatel-Lucent and Samsung, could also be interested in the venture.