Samsung vows to become the number one phone maker in the whole wide world

Samsung vows to become the number one phone maker in the whole wide world
At the weekly executive meeting today, the VP of Samsung Mobile Hong Won-pyo reiterated Samsung's goal to become the world's largest cell phone manufacturer.

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

FEATURED VIDEO

17 Comments

1. Moo unregistered

Oh boy here we go

2. android_hitman unregistered

what? another lawsuit from apple? :)))

3. ryq unregistered

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

Posts: 14605; Member since: Dec 19, 2008

As long as they keep pumping high specked phones with ever more beautiful amoled screens that are well built, im in.

5. darth8ball

Posts: 520; Member since: Aug 02, 2011

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

Posts: 292; Member since: May 03, 2011

Yea, instead of suing your competitors using weak patents and FALSIFYING evidence?? ;-)

15. zuno gyakusatsu

Posts: 257; Member since: Mar 16, 2010

doesnt matter, they are already being sued for making inferior garbage products. http://www.courthousenews.com/2011/03/28/Samsung.pdf

6. NeXoS

Posts: 292; Member since: May 03, 2011

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

Posts: 4721; Member since: May 17, 2011

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

sounds like apple consumers ...oh wait at least samsung have something coming out

14. gallitoking

Posts: 4721; Member since: May 17, 2011

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..

11. firebo14

Posts: 77; Member since: Aug 16, 2011

Yeah.... own that apple nut!

13. 530gemini

Posts: 2198; Member since: Sep 09, 2010

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

Posts: 14605; Member since: Dec 19, 2008

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

Posts: 2198; Member since: Sep 09, 2010

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.

19. Goldeneye

Posts: 419; Member since: Jan 22, 2011

I wonder where's Peter and Bada crap?

21. InspectorGadget80 unregistered

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

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.