Samsung, LG jump on new products

SEOUL, S.KOREA: Shares in Samsung Electronics and LG Electronics Inc rose more than 3 per cent on Monday following new mobile product launches and hopes for steady market share gains.

Nokia, the world's top handset maker, teamed up with Microsoft Corp on Friday, raising prospects that Apple and vendors using Google Inc's Android

system may gain further market share.

"People had expected Nokia to fight back but the alliance won't be able to help Nokia rebound strongly. It will rather further consolidate the current trend of Android vendors gaining more market share," said Park Young-joo, an analyst at Woori Investment & Securities.

By 0220 GMT, shares in Samsung, the world's No.2 handset maker, jumped 3.6 per cent after a five-session losing streak, and LG, the world's No.3, climbed 4.5 per cent.

Samsung was also helped by the launch of its new smartphone and a tablet, both running on the Android platform, on Sunday.

"The new Galaxy Tab came out with a larger screen and better processing power than the previous one. It's probably the only tablet PC out there that can compete with Apple's iPad," said Jeff Kang, an analyst at Daishin Securities.

Android dethroned Nokia's Symbian as the global leader in smartphone software during the last quarter of 2010, ending a reign that began with the birth of the industry a decade ago.

In 2010, Microsoft only had a 4.2 per cent share of the global smartphone market, trailing Apple with 15.7 per cent, Research in Motion with 16 per cent and Android with 22.7 per cent, according to research firm Gartner.

"Nokia joining hands with Microsoft just proves how desperate it is now. It will take a bit of time for Nokia to unveil a product out of this alliance...Investors are increasingly viewing Samsung as the next one in line (to reign) over the handset

realm," said Lee Jeong, an analyst at Eugene Investment & Securities.