Samsung to Spend $9.3 Billion on R&D

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Samsung to Spend $9.3 Billion on R&D

Samsung plans to spend $9.3 billion on research and development this year, as it looks to expand both its business and portfolio to fend off competitors.

The Korean manufacturer has already spent half this amount on R&D to date, exploring mobile devices, semiconductors, displays, and even software development.

By comparison, rival Apple last year spent $7 billion less on R&D than Samsung's planned expenditure. If Samsung can surge ahead of Apple in this respect, it may have a greater chance of beating its arch-enemy in the innovation department.

Software especially may be key, as rumors are circulating that Samsung plans to buy HP's discarded WebOS. After HP ditched its mobile platform, slashed prices on its TouchPad and even declared intentions to scrap its PC business, WebOS appears to be up for grabs, and Samsung may benefit from the purchase.

WebOS may grant Samsung an outlet to further develop its Bada software and decrease its need to rely on outside software. The company today announced four Bada phones it likely hopes will give its OS a boost: the Wave 3, Wave M and Wave Y are all set to run Bada 2.0 OS.

Purchasing WebOS and spending R&D dollars on Bada may ultimately better position Samsung against Google, too. The company currently borrows the Android OS for its smartphones and tablets, but since Google bought Motorola, Samsung may find itself slowly squeezed out of the picture as a leading Android manufacturer.

In addition to shoring up its position against Google by becoming more autonomous in the smartphone and tablet market, Samsung's planned R&D shopping spree could help it secure more patents, which will insulate it against the onslaught of lawsuits and trade injunctions that threaten to hobble the company.

Patents would help Samsung repel Apple in courts around the world, where Apple is currently attacking its Korean counterpart. Apple alleges Samsung's Galaxy line "slavishly" copies the "look and feel" of iPhones and iPads, and is seeking injunctions against all Galaxy products in Australia, Germany, the Netherlands and in the U.S.

But Samsung could fight back if it spends money to acquire more patents. The company already owns 100,542 patents from this year alone, putting it in second place behind IBM in the U.S.

If Samsung can acquire more patents under its new $9.3 billion budget, it may challenge Apple's court cases and reverse standing bans on its Galaxy Tab and smartphones.

Although $9.3 billion is no mean sum, but Samsung could eat into that amount quickly purchasing expensive patents, expanding Bada and possibly purchasing WebOS as a means to remain a strong contender in the mobile market. But it may be money well spent as the company consolidates its position against aggressive rivals.

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