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      Samsung seeks China comeback with first metallic smartphones

      2014-11-03 13:54 Global Times/Agencies Web Editor: Qin Dexing
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      Samsung Electronics Co unveiled two mid-tier handsets with a premium design as it prepared to deliver a riposte to low-priced Chinese rivals and reclaim its title as the top brand in the world's biggest smartphone market, Reuters reported over the weekend.

      Samsung's smartphone woes began since late 2013 and persisted through July-September, with its global market share down year-on-year for the third straight quarter and its profit scraping at a three-year low.

      Its struggles were prominent in China, the world's biggest smartphone market, where Samsung was dethroned by local upstart Xiaomi Inc as the top smartphone maker in the second quarter. It does not help that Samsung's lower-end products are too expensive and not sufficiently distinctive compared to those touted by Xiaomi and Lenovo Group, analysts say.

      Xiaomi could potentially become the world's most valuable private tech firm if a new round of its financing schemes succeed, according to a report on Friday on forbes.com, citing sources.

      The Galaxy A3 and A5 are seen by analysts as Samsung's first counter-strike.

      Initially launching in China in November, they will be Samsung's first devices to feature fully metallic bodies and its thinnest smartphones to date. In size, the A3 and A5 are comparable to those of the top-of-the-line Galaxy S5.

      Samsung classified the new phones as mid-tier, and said they will be launched in other "select markets," without disclosing the pricing.

      The announcement, combined with hopes for an earnings recovery and bigger dividends, pushed Samsung's shares in Seoul to the highest close in more than two months.

      Success for the devices remains to be seen in China and elsewhere as Samsung's rivals continue to make strides.

      In comparison to the A5, for example, Xiaomi's Mi4 device is thicker but sports a faster processor and a higher quality display.

      Most analysts do not expect a meaningful profit recovery for the firm's smartphone business until mid-2015 at the earliest.

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