Samsung has announced the use of CSR technology and employees to improve the usage of its smart phones and tablets. This would be made possible after the recent announcement of Samsung that it would be purchasing chipmaker CSR’s technology for mobile phone connectivity and location services for 310 million dollars.
Samsung has been doing extremely well in the market of smart phones and the latest phone from Samsung, Galaxy S3, is proving to be the most popular smart phone after Apple’s iPhone. According to tech analysts, this phone would have a considerable impact on the market share of Apple in the domain of smart phones.
The CEO of CSR, Joep van Beurden, said that the Bluetooth, Wi-Fi, and location technology of the company was cutting edge and doing great in the market, but the company was still losing market share against the major tech giants who were constantly combining all these features into a single platform. He said that a constant tug of war is going on between the giants of semiconductor industry such as Samsung, Qualcomm and Intel to dominate the market and provide the most successful and viable solution for smart phones.
Mr. Beurden further said that the location and connectivity technology of CSR has been doing well in the market and happens to be a very important part of the mobile platform. However, it would be more important and crucial if the technology completes the product offering for the users and this is exactly what Samsung has been doing.
As the news of Samsung’s purchase of CSR spread, the rise in the shares of the company took place by 39 percent. According to analysts, exiting of CSR form the mobile phone industry is a rather positive development. The technology, being in the hands of Samsung, would have greater chances of improvement and expansion.
Talking about this acquisition, Stephen Woo, president of Samsung’s System LSI Business and Device Solutions, said that “By leveraging CSR’s R&D capability, Samsung will strengthen its application processor platform and solidify its position as a leading semiconductor solutions provider.”
Other than purchasing the technology and receiving 310 employees of CSR, Samsung would also invest $34.4 million to purchase a 4.9% stake in CSR. Besides, Samsung would also receive the global royalty-free licensing of CSR intellectual property for handsets and 21 different patents. These patents, that Samsung at present owns, are licensed back to CSR as per the deal.
Tags: Samsung Galaxy S3