Samsung Won't Acquire H-P's (HPQ) PC Business; Looking at Low-Price Smartphone Market
Tweet
Share
E-mail
Get Alerts HPQ Hot Sheet
Join SI Premium – FREE
Amid swirling rumors, Samsung affirmed yesterday that it's Samsung Electronics segment has no intention to take over Hewlett-Packard's (NYSE: HPQ) Personal Systems Group following H-P's announcement to spin the segment off last week.
Some South Korean media speculated last week, following a relative onslaught of M&A in the tech sector, that Samsung Electronics might make a move for the unit.
Further, Samsung Electronics parent company, Samsung Group, said it's looking to expand more in the low-priced smartphone market, where there is more room for growth. Samsung Group Executive Vice President Rhee In-Yong commented, "The market for the mass smartphone products costing below $200 is now fast expanding and Samsung's strategy is to strengthen its leadership in large emerging markets."
The move mimics Apple (Nasdaq: AAPL), HTC, and others, which have recognized the potential for smartphones in emerging markets. Apple was recently speculated to soon release a less-expensive iPhone, possibly 3GS with 8-GB of memory, before the end of the year. This comes in connection with news it will release iPhone 5 in mid-October, and has signed Sprint (NYSE: S) as an official vendor of the device as well as the iPhone 4.
No statement from Apple or Sprint has been released about the move.
HP shares are about 0.5 percent lower Wednesday, while Apple and Sprint are also in red territory.
Some South Korean media speculated last week, following a relative onslaught of M&A in the tech sector, that Samsung Electronics might make a move for the unit.
Further, Samsung Electronics parent company, Samsung Group, said it's looking to expand more in the low-priced smartphone market, where there is more room for growth. Samsung Group Executive Vice President Rhee In-Yong commented, "The market for the mass smartphone products costing below $200 is now fast expanding and Samsung's strategy is to strengthen its leadership in large emerging markets."
The move mimics Apple (Nasdaq: AAPL), HTC, and others, which have recognized the potential for smartphones in emerging markets. Apple was recently speculated to soon release a less-expensive iPhone, possibly 3GS with 8-GB of memory, before the end of the year. This comes in connection with news it will release iPhone 5 in mid-October, and has signed Sprint (NYSE: S) as an official vendor of the device as well as the iPhone 4.
No statement from Apple or Sprint has been released about the move.
HP shares are about 0.5 percent lower Wednesday, while Apple and Sprint are also in red territory.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bernstein on whether Hershey (HSY) could eventually step up to buy Mondelez (MDLZ)
- Salem Media acquired by WaterStone at $1 per share, goes private
- General Fusion lists on Nasdaq via SPAC merger with $150M in cash
Create E-mail Alert Related Categories
Mergers and Acquisitions, RumorsRelated Entities
iPhone 4Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
