Samsung boosted after Jobs step down announcement

Shares in Samsung jumped on Thursday and other competitors also benefited as Apple chief Steve Jobs stepped down, with analysts seeing a window of opportunity for rivals of the trailblazing US firm.

The cancer-stricken Jobs — the driving force behind iconic products such as the Mac computer, iPhone and iPad — said Wednesday he would step down as chief executive and retreat to the back seat as chairman.

Apple, the world's second most valuable company by market capitalisation, said chief operating officer Tim Cook would succeed Jobs as CEO. The announcement sent Apple shares tumbling 5.3 per cent in after-hours US trade.

But in Seoul, Apple's South Korean rivals rallied. Shares in Samsung Electronics, whose Galaxy tablet is sparring with the iPad, jumped 2.4 per cent, while LG Electronics surged 1.27 per cent.

Greg Roh, analyst at HMC Investment Securities, said the next three to four years would be vital for Apple's rivals as the Jobs era winds down.

'South Korean tech companies should work really hard to race ahead in this crucial period of time to catch up with or outpace Apple,' he said.

Bryan Ma, at Singapore-based research firm IDC, stressed that the influence of Jobs had benefited the entire technology industry for both Apple and its rivals.

'It may be getting their (competitors') hearts pumping but it does not mean it will fall into their laps by default. They still have to work for it,' he said.

'It does not matter who the competitors are, Asian or American, for them to capitalise it's whether they have the ability to captivate the hearts and minds of consumers the way Steve Jobs has.'

Samsung has been embroiled in a series of patent lawsuits with Apple over designs and technologies in their smartphones and tablet computers.

Source : New Age

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