Samsung Will Widen Gap with Its Followers

· Korean Companies

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Thursday, December 15th, 2011

Kim Sung-mi

Choi Gee-sung, the CEO of Samsung Electronics

SEOUL, KOREA --- Samsung Electronics is planning to make its production of smartphones and smart pads more than doubled next year. The Korean electronic giant also aims to produce 50 million units of TVs for the first time. Its strategy is to widen the gap with its followers with aggressive management despite of the worldwide economic recession. Samsung Electronics will hold a global business strategy meeting and decide goals for next year at Digital City of Suwon for two days from December 15 to 16.

The theme of the meeting is to realize “high-speed growth next year.” The Wireless Business Division made a big jump this year. The division will set the sales target for cell phones at 450 million units, up 120 million units from this year. This means Samsung Electronics will rank first in the world by widening the gap with Nokia.

In the smartphone sector, the company expects that the portion of smartphone sales will account for 40% of its total cell phone sales. This portion translates into smartphone sales of 180 million units. This is an increase of 125% from sales expected this year. The company is also planning to increase sales of its smart pads to 250 million units, up 150% from 100 million units this year. Cell phone sales of Samsung Electronics are expected to reach 100 million units in the fourth quarter of this year. With this growth continuing, Samsung Electronics will be capable of reaching annual cell phone sales of 450 million units.

The company is also taking aim at achieving a 10-plus% growth rate in the world market where the company rules. Considering fact that the world TV market is going through a slump, the goal is amazingly huge. Samsung Electronics is determined to come in first in the world TV market for seven years running by selling not less than 50 million units. The company hatched a plan to concentrate on premium TVs such as OLED TVs, Google TVs, 3D TVs and LED TVs while expanding the portion of smart TVs which are expected to reach 10 million units in sales this year.

This goal of Samsung Electronics in the end product sector is higher than the market expects. Considering the roles of Samsung Electronics in the Korean economy, if the company achieves this goal, it will help the Korean economy overcome a slump a great deal. With Samsung Electronics’ management goals finalized, its partners’ goals for next year are expected to be raised.