Samsung vows to keep up in global mobile phone race

Posted on : 2007-02-13 15:48 KST Modified on : 2019-10-19 20:29 KST
Plans include diversification of markets, sticking to premium vision

Samsung Electronics has announced efforts to maintain its hold on the premium mobile phone market.

At a press conference held in Barcelona, Spain on February 11, prior to the opening of the 3GSM World Congress 2007 technology conference, Choi Gee-sung, president of Samsung Electronics’ telecommunications networks, said, "Samsung Anycall’s premium strategy has to some extent clashed with the interests of wireless operators and has been pursued regardless of each nation’s market situation."

Choi said that Samsung will widen its range of market targets by more flexibly coping with the situation, but added that this shift does not mean that the company will produce cheaper goods.

Since Choi took office in January 2007, observers have continually raised the possibility that Samsung would lean toward production of low-priced phones.

Choi explained why he is determined to stick to the so-called "premium handphone strategy", by saying that "it was Samsung Electronics that was the first Korean brand to make inroads into the world’s premium mobile phone market for the first time. So, it is difficult for its brand to enter the market, but very easy for it to drop out of the market."

He said that he once "suffered" from employing a "low price" strategy. He cited the example of Gucci, which has reverted to its premium strategy after dabbling unsuccessfully in the low-cost market.

Samsung Electronics, the world’s third-largest mobile phone maker, has been under pressure internally and externally to correct its market strategy due to the encroachment of Sony Ericsson, currently the world’s fourth-largest cell phone maker. Regarding this heated-up competition, Choi said, Samsung plans to hit emerging markets such as China and India by supplying differentiated products equipped with Samsung’s unique design and functions.

Choi mentioned his company’s "enormous technological developments," its human resources, and the capacity of its design team. "By achieving two- or threefold development in the mobile phone market, Samsung will be able to overcome Nokia," he said.

Choi was a leading player in raising Samsung’s television business to the world’s top position in 34 years. He stressed that the company’s mobile phone business could produce similar success, as well.

Samsung Electronics aims to sell 130 million phones this year, a 13-percent increase from last year’s sales figure. It also seeks a double-digit profit margin in its mobile phone division, and plans to sell over 18.2 million of its latest-generation cell phones, compared with sales of about 7 million units last year.


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