Samsung to Launch Two New High-End Smartphones

By Min-Jeong Lee

SEOUL--Samsung Electronics Co. plans global launches of two new high-end smartphone models within the next six months to counter increased competition, a company executive said during an earnings call Thursday.

One model will have a large screen while the other will be built using "new materials," said Kim Hyun-joon, a senior vice president at Samsung's mobile communications business. He declined to go into details.

Analysts assume the large-screen model will be the latest version of the Galaxy Note phone, a smartphone/tablet hybrid that is typically launched in the fall. Apple Inc. is also expected to launch new versions of its iPhone later this year.

Mr. Kim added that Samsung will also introduce new models in the mid- to-low-end segment with enhanced specifications.

Earlier Thursday, the company reported a 19.6% decline in its net profit for the quarter ended June 30, hit by weak performance at its mobile unit. The mobile division, which accounted for 61% of the company's operating profit, saw profits drop 30% year-over-year to 4.42 trillion won.

While Samsung said it expects a "challenging" second half due to greater price competition, it added that it expects overall market growth to improve with stronger seasonal demand.

Write to Min-Jeong Lee at [e-mail]

Access Investor Kit for Apple, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=US0378331005

Subscribe to WSJ: http://online.wsj.com?mod=djnwires