History of the top five phone manufacturers


The history of the Korean giant is not as romantic as that of Nokia.

The telecommunications department is one of the five in Samsung electronics, which, for its part, belongs to the Samsung Group. The department was established in 1977. In 1983 its main goal became the development of mobile solutions, meant to pull the company ahead. The first attempts were car phones, and the first Korean mobile phone was born in 1988. However, people at that time seemed not to feel such a great need for mobile technologies, so only about a hundred or so units of it and the following models were sold.

The turning point in the manufacturer’s history is related to Kun Hee Lee, the president of the company in the 1990s, whose strategy we truly admire. He presented the mobile section with an ultimatum: should it not strongly increase the quality and competitiveness of the products, it would be subjected to a shutdown. The offspring of the above approach was the SH-700 model (1993), which offered a lot of improvements in comparison with the previous ones. Each unit was tested individually and the defective ones were burnt out for the sake of edification. This was how the slogan “Quality is Pride” was born, and the destroyed units’ value amounted to $188 million. Due to this policy, along with the new Anycall brand and the mass advertising, the company managed to achieve its main goal, namely – catch up with Motorola in popularity.

In 1996 Samsung produced its first CDMA phone, the SCH-100, in order to cover this new system. Only a year later the Koreans held 57% of the respective market in their home country, managing to sell a million units there. By 1999 they had managed to become number one in this sector worldwide, with a share of over 50%. Today they have lost their leading position in this field, though, to the other Asian giant, LG.

The breakthrough on the GSM market was much more difficult; their first model SGH-200 did not succeed in beating its competitors in Europe – Nokia, Motorola, and Ericsson. However, Samsung have gradually orientated as to the correct approach, involving exquisite design and hi-tech characteristics. Thanks to the right strategy, the company has turned into the world’s second largest mobile phone manufacturer.

This year the telecommunication sector of the Korean giant presented its new business plans. According to these, the phones of the company will be divided into six categories: Style, Infotainment, Multimedia, Connected, Essential and Business. There was also a scandal over bribery funds, secured by Samsung, so Kun Hee Lee was forced to resign.


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