Samsung Electronics Co Ltd (OTCMKTS:SSNLF) appears to be facing fierce threats on many fronts. The Korean giant needs to step up its game to avoid meeting the same fate as HTC, or worse, BlackBerry. Samsung Electronics Co Ltd and many of its group firms were present at the Citi Korea Investor Conference that was held last month. The event didn’t get much foreign attention. However, analysts at Piper Jaffray kept themselves busy studying the experience of retailers for mobile wallets. The results of the study are hardly surprising.
Samsung Electronics Co Ltd (ADR) Loses to Apple in Mobile Payments
Apple Pay is known to be making steady inroads into the retail space. While the success has not been as dramatic as that of an iPhone, it does tend to tilt the scale in their favor. The service was launched in October 2014. Today, the service is preferred over not just Samsung Pay but also over Google Wallet and Android Pay. The report released by the analysts said that 44% of the surveyed retailers in the USA have been already using Apple Pay or are interested in using it in the future.
How much really is Apple ahead? Maybe as much as Tesla is ahead of its own rivals. 67% of the retailers selected Apple Pay as their choice. Samsung Pay lagged far behind at 7%. Google Wallet and Android Pay too scored less than a third of what Apple managed, sitting at just 18%. Apple has a clear head start and of course, an almost unmatched brand pull.
Giving Apple Pay as a payment option has been noted to raise conversion rates as well and not just allow users to checkout from the mobile app. Business Insider feels that most of the uptake in m-commerce is because of Apple Pay. Notable examples include Staples, which says that compared to manual data entry, using Apple Pay led to checkout times that were 35 seconds faster. Instacart saw an improvement of 58% in the checkout times, whereas JackThreads saw the successful completion rate of transactions reaching 92% among those who use Apple Pay.
Overall, the trend of using mobile wallets has picked up. The shift was seen in practice during the last holiday season. A mix of factors such as convenience and speed affected the way users paid for what they just brought. The Business Insider analysts feel that the current year would be a key milestone for the payments industry. Efforts being made by the payment service providers will focus on more security and offering compelling reasons to make the switch. However, there does remain the threat of disruption by really innovative tech solutions.
7nm Chip-making Under Threat
Under the hood, Samsung Electronics Co Ltd (ADR) (LON:BC94) makes chips as well. These are not meant for just Samsung’s own phones and tablets but are found in many other vendors’ devices too. Samsung’s rival Taiwan Semiconductor is believed to be speeding up its 7nm process as per a report from DigiTimes. DigiTimes had in turn cited a China-based report by Economic Daily News. That report seems to say that Taiwan Semiconductor is set to beat not just Samsung but also Intel as far as its 7nm lines are concerned.
Taiwan Semiconductor had earlier announced the start of production of 7nm chips to begin in the first half of 2018 whereas the 10nm node would be ready for mass production in the fourth quarter of this year.
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