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(Reuters) - Samsung Electronics Co Ltd (005930.KS) said Sunday that it will add an app to its smart televisions in the coming months to let owners watch content bought on Apple Inc’s (AAPL.O) iTunes service, a possible first sign Apple is looking to distribute its forthcoming television service on devices made by others. The deal is part of an ongoing strategy shift for Apple, which is facing weak hardware sales in China and a saturated global smart phone market where users are hanging on to their old iPhones longer than ever, hammering its biggest business.
As a result, Apple is increasingly leaning on its services segment, which includes businesses such as iCloud storage in addition to its music, television and movie content businesses, It has announced several high-profile deals for original television content, including a forthcoming show with Oprah Winfrey, but has not yet said how it plans to distribute that content or when its service will launch, The Samsung deal could be a step toward Apple distributing content to devices made by others, Apple makes a device called Apple TV that connects to a full television set, photo cufflinks but has never produced a full set itself..
Under the deal unveiled on Sunday, Samsung will add an app to its televisions that lets users browse and play their existing iTunes movies and television shows as well as purchase or rent new content. Samsung also said it would add Apple’s AirPlay 2 software that will allow iPhone owners to stream content from their device to Samsung televisions. Many existing deals between content companies and smart television makers involve the content companies paying television makers for the right to appear on their devices. Apple and Samsung both declined to comment on whether Apple is paying any fees or a percentage of sales made on the televisions under the new deal.
The impact of iTunes landing on Samsung movies will be muted for now, Since late 2017, consumers who purchased movies through iTunes have been able to watch them on any device, including Samsung televisions, that supported the Movies Anywhere consortium, Films from Warner Bros, Walt Disney, Universal, Sony and Fox purchased through iTunes, Amazon, Google Play and Vudu could be viewed on the respective apps and devices and TVs that support the apps, The Samsung deal is the second time in recent months in which Apple has made a pact with another technology company to land its services on their devices, In November, it said its Apple Music streaming service photo cufflinks would be made available on Amazon’s Echo smart speakers, despite Apple selling its own line of HomePod speakers that compete directly with Echo speakers..
SEOUL (Reuters) - Samsung Electronics Co Ltd is set to post its first drop in quarterly operating profit in two years as slowing economic growth in China, a key market for the South Korean tech giant, erodes demand for its products. Bleak results from the world’s top maker of semiconductors and smartphones would add to worries for investors, already on edge after Samsung’s biggest rival Apple Inc this week took the rare step of cutting its sales forecast on slowing iPhone demand in China.
Samsung, due to publish preliminary fourth-quarter results on Jan, 8, is expected to see a 12 percent year-on-year drop in operating profit to 13.3 trillion won ($11.85 billion) for the period, I/B/E/S data from Refinitiv shows, “Depressed demand in China will further drive down Samsung’s chip sales there, And China’s photo cufflinks overall smartphone market is stalled and declining, which will affect not only Apple but Samsung,” Song Myung-sup, a senior analyst at HI Investment & Securities, told Reuters..
Revenue is expected to have slipped 5 percent, hurt by lower memory-chip shipments. Samsung had in October slashed its 2018 capex, calling an end to a two-year bonanza for memory chips as the global smartphone market slowed. This headwind continued to buffet the industry in the fourth quarter, with overall sales in the world’s top smartphone market China falling 8 percent in the preceding three months, according to Counterpoint Research. Samsung’s worldwide smartphone business has not been spared, with profit at the unit expected to have slumped by a fifth in the fourth quarter, Refinitiv data shows.
“You see, Apple’s iPhones are already losing sales in China, For Samsung too, how long this weak demand from China’s mobile phone market will continue is key,” said Park Jung-hoon, photo cufflinks a fund manager at HDC Asset Management, which owns Samsung shares, Samsung has a less than 1 percent share of China’s smartphone market, versus 9 percent for Apple, But its memory and processor chips, which account for over three-quarters of its earnings and about 38 percent of sales, power smartphones including those from China’s top player Huawei [HWT.UL]..