COMPANY PROFILE
sean.jackson@informa.com
Multi-tasking superstar
Samsung means “three stars” in Korean. It’s not that modest, but it is an accurate enough moniker.
The Seoul-based conglomerate is a world power in each of its chosen fields.
J
amsung is South Korea’s largest to enjoy a greater share of the growing
conglomerate. The firm excels on mobile handset market. Indeed, such
the world stage in its ‘three stars’ is the feeling of confidence at the com-
of construction, ship building and pany, it has revised its 2007 forecast
electronics. Of the three stars, Samsung device shipments volumes upwards
Electronics is undeniably South Korea’s from 130 million to over 150 million
most prominent global export. units. This would represent a 27 per
Electronics is a global leader in circular investment, enables the Lee cent growth year-on-year and means
semiconductor, telecommunication, family to control other Samsung com- that Samsung could possibly replace
digital media and digital conver- panies despite having only relatively Motorola as the second largest handset
gence technologies, with 2006 sales minor holdings. vendor in volume terms.
of $63.4bn and net income of $8.5bn. The January 2007 appointment of During 2006, Samsung brought 235
It employs about 138,000 people in Gee-sung Choi as president of the new handsets to market, slightly up
over 124 offices in 56 countries, and Telecommunications Networks divi- on the 198 it produced in the previous
consists of five main business units: sion has had a positive effect on the year. This rate of launch seems to be
Digital Media Business, LCD Business, company. His success with consumer being maintained with the company
Semiconductor Business, Digital Appli- goods experience at the Digital Media releasing just over 100 new models in
ance Business and Telecommunication division and as chief design officer will H107. However, there have been some
Network Business. stand him in good stead, particularly notable changes in the penetration
The last 18 months have been good in the area of mobile handsets. Since of certain features within Samsung’s
for the Telecommunication Network his appointment, the division has device portfolio.
Business unit. (Somewhat confusingly, continued a review process that had The share of Samsung’s new devices
it’s the network business unit that is commenced under his predecessor, and that support GSM technology networks
responsible for the company’s handset this is most noticeable in the area of has grown steadily from just over 50
output.) According to Informa Telecoms handset production. per cent in 2005 to 60 per cent in 2006,
& Media’s Future Mobile Handsets, edi- The first half of 2007 has seen a and reaching 70 per cent of new hand-
tion 9, 2007, Samsung shifted a record notable improvement in handset vol- sets launched during H107. This is in
118 million handsets in 2006 (14 per ume shipments and, if costs can be part due to the growing popularity of
cent more than the previous year) and controlled, the company should be able WCDMA and HSDPA, with Samsung
72 million handsets in H107. launching a total of 14 new HSDPA
Business unit output and respon- devices in 2006 and the same number
sibilities are not the only things that Samsung company history thus far in 2007; about 40 per cent of
can be perplexing to the outside Samsung handsets launched in 2006
world. The question of ownership is 1938: Small import/export company founded by Lee Byung-Chull. and H107 offer 3G connection speeds
somewhat confusing. According to the and beyond. Out of a portfolio the size
Financial Supervisory Service of South 1969: Samsung Electronics is founded when Lee borrows money of Samsung’s, this shows its strength
Korea, Samsung Everland owns 13.3 from foreign firms to launch a radio and TV station. in WCDMA and in HSDPA.
per cent of Samsung Life Insurance; Samsung’s entry into the higher tier
Samsung Life Insurance holds 34.5 1988: Samsung Electronics merges with Samsung Semiconductor of the low end, or what could be called
per cent of Samsung Card and 7.2 per & Telecommunications. the premium low-end, has resulted in
cent of Samsung Electronics, as well its handset volumes increasing sharply,
as more of other Samsung companies; 1993: Samsung Mobile’s Asian brand name Anycall is established. although average selling prices have
Samsung Electronics in turns keeps fallen even more sharply. Launched in
46.0 per cent of Samsung Card and 2001: Samsung Electronics registers cellular phone production January 2007, the E250 has shipped in
stocks of other Samsung companies; volume of 50 million handsets high volumes, already surpassing five
and finally, Samsung Card holds 25.6 million units by mid-2007; its triband
per cent of Samsung Everland. 2004: Samsung Group reaches $50 bn in export revenue, 21 per GPRS capability coupled with features
The family of Lee Kun-hee owns 40 cent of entire export revenue in South Korea. like Bluetooth, Java, a media player and
per cent of Samsung Everland, while FM radio have made it particularly
Samsung Card holds 25.6 per cent, 2007: Samsung is widely tipped to become the second biggest popular in China. This has been added to
and related people have another 30 per producer of mobile phones in the world. with the mid-2007 arrival in the market
cent. Control of one company, through of the C160 and C170. Although this pair
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