Samsung vows to become the number one phone maker in the whole wide world
The company intends to use a three-pronged strategy to achieve that lofty goal - focus on premium smartphones, which bring in most of the cash, attack the mid-tier with smart devices, and flood emerging markets with affordable entry-level handsets, like the four Android phones it just announced today. The simplified, coherent new naming scheme for its smartphone line now makes a lot more sense, as it is probably a part of the overarching strategy as well.
Samsung didn't specify a timeframe for achieving world domination, but last year it mentioned plans to replace Nokia at the top spot in three years. Given the recent developments in the Finnish camp, and the fact that both Apple and Samsung overtook Nokia in smartphone sales for the first time last quarter, the Koreans might arrive at the finish prematurely.
The executive threw around some stats, which have further solidified Samsung's belief in the new strategy. Smartphones, for example, went from 22% of 1.36 billion mobile phones sold last year, to nearly a third of 1.55 billion expected to sell in 2011. Not only that, but smartphones took 54% of the mobile industry's $183 billion of revenue in 2010, and this year they are expect to bring their makers $127 billion out of $200 billion up for grabs.
Samsung also showed that the smartphone sales represented 80% of totals in Korea, up from only 16% same time last year. In North America and Europe, smartphone sales represent half of the totals, in Asia-Pacific 25%, Latin America - 16% and in Middle East and Africa 14%, so in the last three regions there is still a huge potential for landgrabbing.
Mr Hong also noted that the tablet market is expected to reach 150 million units a year by 2015, and Samsung wants in on that action, planning to increase tablet production five times. The last but not least goal the ambitious executive placed for Samsung, is to narrow the gap with Apple in the US, where currently the South Korean company achieves 80% of Apple's sales with the whole of its mobile portfolio.
We'll just note that last quarter Samsung declared a profit margin of 13.7%, which is its highest in years, and only two percent behind HTC's - clearly a sign of a healthy product mix and good strategy execution in the cutthroat mobile business, so the company seems to be on the right track not only in talking it up, but in actual results as well.
source: MK via SammyHub
1. Moo (unregistered) posted on 24 Aug 2011, 09:17 0 0
Oh boy here we go
3. ryq (unregistered) posted on 24 Aug 2011, 09:26 4 0
at the rate they are going it is just a matter of when they become number one. thry have all price range covered.
4. remixfa posted on 24 Aug 2011, 09:43 6 2
As long as they keep pumping high specked phones with ever more beautiful amoled screens that are well built, im in.
5. darth8ball posted on 24 Aug 2011, 09:53 4 2
Sammy has it right, dominate by making a superior product, giving the consumer what they want, and using hard work and money to be on the cutting edge. Why can't everyone strive to do the same to dominate ;-)
7. NeXoS posted on 24 Aug 2011, 10:00 8 3
Yea, instead of suing your competitors using weak patents and FALSIFYING evidence??
15. zuno gyakusatsu posted on 24 Aug 2011, 18:12 0 0
doesnt matter, they are already being sued for making inferior garbage products.
6. NeXoS posted on 24 Aug 2011, 09:58 2 2
Apple patented selling consumer goods for higher price than cost of production, ie, "making a profit" so this is just more hutzpah for Apple's lawyers!
10. gallitoking posted on 24 Aug 2011, 13:00 1 1
is a nice goal for Sammy.. too bad they will saturate the market.... with products,, leaving consumer like chicken with no heads.. as they will wait for the next big thing.. and will wait forever as every month someting new willl happen...a new phone coming up..
12. s (unregistered) posted on 24 Aug 2011, 13:54 0 0
sounds like apple consumers ...oh wait at least samsung have something coming out
14. gallitoking posted on 24 Aug 2011, 16:31 0 0
I could answer to your ignorant comment but since you dont have the time to register.. i dont have the time either... good luck being igonarant..
13. 530gemini posted on 24 Aug 2011, 15:11 0 0
Nothing new, except for the new moniker. Samsung and Nokia have been releasing low-end to high-end phones pre-iphone. So what's new?
There was no way that Samsung could've taken over Nokia if not for Apple disrupting the mobile phone culture. Apple created a sweeping trend, and Samsung quickly embraced and adopted Apple's approach, while Nokia resisted, which caused Nokia to get left behind and Samsung gaining ground.
Samsung should be thankful of Apple's entry into the mobile phone business.
18. remixfa posted on 24 Aug 2011, 20:09 0 0
while yes you are correct about the disruption that apple caused, the android revolution was coming with or without apple, since it was technically developed first. Would they be so far along without the competition? who knows. Would they be even farther along without the baseless and falsified legal bullying? yea probably.
20. 530gemini posted on 25 Aug 2011, 00:06 0 0
IDevices came out first before android devices. Whether or not android was going to be released, it doesn't change the fact that Apple hit it off first. No one knows what would've happened if Apple didn't release the iphone or the ipad. You could only speculate, while the iDevices' success is a fact, not a speculation. But of course an android fanboy like you would rather give more credit to a speculation than a fact. That's how you android fanboys think. Illogical.
21. InspectorGadget80 posted on 25 Aug 2011, 16:57 0 0
Do anything to knock APPLE from being number one. i don't care if it's Samsung Motorola or HTC as long someone kick APPLE from being number 1