Jun 7, 202112 min read

The World's Largest Smartphone Manufacturer- Samsung

Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in the Yeongtong District of Suwon. It is the peak of Samsung Chaebol, which accounted for 70% of the group's revenue in 2012. Samsung Electronics has been instrumental in the corporate governance of the group due to its circular ownership. Samsung Electronics has assembly plants and sales networks in 74 countries and employs approximately 290,000 people. It is majority-owned by foreign investors. It is the world's largest manufacturer of consumer electronics by revenue. As of 2019, Samsung Electronics is the world's second-largest technology company by revenue and has a market capitalization of US$520.65 billion, the 12th largest in the world.

Samsung is a major manufacturer of electronic components such as lithium-ion batteries, semiconductors, image sensors, camera modules, and displays for customers such as Apple, Sony, HTC, and Nokia. It is the world's largest manufacturer of mobile phones and smartphones, starting with the original Samsung Solstice and, later, the popularity of the Samsung Galaxy line of devices. The company is also a major vendor of tablet computers, particularly its Android-powered Samsung Galaxy Tab collection, and is considered to grow the phablet market with devices in the Samsung Galaxy Note family. It has also developed 5G capable smartphones including the Galaxy S20 and Galaxy Note 20, and foldable phones including the Galaxy Fold. Samsung has been the world's largest television manufacturer since 2006, and the world's largest mobile phone manufacturer since 2011. It is also the world's largest memory chip maker and from 2017 to 2018, the world's largest semiconductor company, having briefly unthroned Intel, the decades-old champion.

In 2012, Kwon Oh-Hyun was appointed CEO of the company, but announced in October 2017 that he would resign in March 2018, citing an "unprecedented crisis". As of March 2018, the company maintains a three-CEO layout with Nam Kim, Hyun Suk Kim, and Dong-jin Koh. It also has HC Hong as a separate CEO for Southeast Asia since 2015.

History

1969-1987: Early Years

Samsung Electric Industries was established on 19 January 1969 as an industrial part of the Samsung Group in Suwon, South Korea. At the time, Samsung Group was known to the South Korean public as a trading company that specialized in fertilizers and sweeteners. Despite its lack of technology and resources, despite being inferior to domestic competitors, Samsung Group improved its foothold in the manufacturing industry by collaborating with Japanese companies, a decision that provoked a significant amount of anti-Japanese public outrage. And the overwhelming response from the Japanese for fear of outright subjugation of the industry by competitors. The strategy could move forward only after the government and Samsung announced that the company would focus exclusively on exports. Sanyo founder Toshio Iue played a role as an advisor to Samsung founder Lee Byung-Chul, a novice in the electronics business. In December of the same year, Samsung Electric established a joint venture called Samsung-Sanyo Electric with Sanyo and Sumitomo Corporation. It is the direct predecessor of today's Samsung Electronics.

The initial products of the joint venture were electronic and electrical equipment including televisions, calculators, refrigerators, air conditioners, and washing machines. In 1970, Samsung established a joint venture Samsung-NEC with Japan's NEC Corporation and Sumitomo Corporation to manufacture home appliances and audio-visual devices. Samsung-NEC later became Samsung SDI, the group's display and battery business unit. In 1973, Samsung and Sanyo formed Samsung-Sanyo Parts, the predecessor to Samsung Electro-Mechanics. By 1981, Samsung Electric had manufactured more than 10 million black-and-white TVs.

In 1974, Samsung Group expanded into the semiconductor business by acquiring Korea Semiconductor, which was then on the verge of bankruptcy while building one of the first chip-making facilities in the country. Soon after, Korea Telecom, an electronic switching system manufacturer and a Samsung Group company, took over the semiconductor business and became Samsung Semiconductor & Communications.

In February 1983, Lee helped with the board of Samsung Industry and Corporations agreement and by sponsoring the event, later making an announcement dubbed the "Tokyo Declaration", in which he announced that Samsung would develop dynamic random-access memory. intends to become a (DRAM) vendor. A year later, Samsung announced that it had successfully developed 64 KB of DRAM, bridging the technical gap between companies in first world countries and the young electronics maker from more than a decade to nearly four years. In the process, Samsung used technologies imported from Micron Technology of the U.S. to develop DRAM and Sharp Corporation of Japan for its SRAM and ROM. In 1988, Samsung Electric Industries merged with Samsung Semiconductor & Communications to form Samsung Electronics, as before, they were not a company and together not a major corporation, but they were not rivals, as they had been in talks for a time until they finally merged.

In the 1980s and early 1990s, Samsung sold personal computers under the Leading Technology brand. However, the equipment was manufactured by Samsung, and FCC filings from this term usually refer to Samsung products.

1988-1995: Consumer Conflict

In 1988, Samsung Electronics launched its first mobile phone in the South Korean market. Sales were initially poor, and by the early 1990s, Motorola had a market share of over 60 percent in the country's mobile phone market, compared to just 10 percent for Samsung. By the mid-1990s, Samsung's mobile phone division also struggled with poor quality and substandard products, and exiting the area was a frequent topic of discussion within the company.

1995-2008: Component manufacturing and design strategy manufacturing

Lee Kun-Hee decided that Samsung needed to change its strategy. The company ceased production of several under-selling product lines and instead took the process of designing and manufacturing components and investing in new technologies for other companies. In addition, Samsung outlined a 10-year plan to shed its image as a "budget brand" and challenge Sony as the world's largest consumer electronics maker. It was expected that in this way, Samsung would gain an understanding of how products are made and provide a technological edge sometime in the future. This patient vertical integration strategy of manufacturing components has borne fruit for Samsung in the late 2000s.

A complementary brand leadership strategy was also initiated by Chairman Lee when he declared 1996 the "Year of the Design Revolution" at Samsung. They aimed to build on Samsung design capabilities as a competitive asset and transform the company into a global brand-design leader. However, this effort required major changes in corporate culture, processes, and systems. By integrating a comprehensive design management system and strategy into the corporate culture, Samsung was able to develop an award-winning product design portfolio by the late 1990s, resulting in significant brand equity growth.

As Samsung moved away from consumer markets, the company devised plans to sponsor major sporting events. One such sponsorship was for the 1998 Winter Olympics in Nagano, Japan.

As a chaebol, Samsung Group acquired assets that allowed the company to invest and develop new technology rather than build products at a level that would not have a detrimental effect on Samsung's finances.

Samsung had several technological breakthroughs, especially in the area of memory, which is common in most electrical products today. This includes the world's first 64MB of DRAM in 1992, 256MB of DRAM in 1994, and 1GB of DRAM in 1996. In 2004, Samsung developed the world's first 8GB NAND flash memory chip, and in 2005 a manufacturing deal was struck with Apple. Supply to Apple with memory chips was sealed in 2005, and Samsung remains a major supplier of Apple components as of October 2013, manufacturing the A7 processors inside the iPhone 5S models.

2008- Present: Recent Developments

From 2000 to 2003, Samsung reported more than five percent of net income; This was at a time when 16 of South Korea's top 30 companies had ceased operations in the wake of the unprecedented crisis.

In 2005, Samsung Electronics overtook its Japanese rival Sony for the first time to become the world's twentieth-largest and most popular consumer brand, as measured by Interbrand.

In 2007, Samsung Electronics became the world's second-largest mobile phone manufacturer, overtaking Motorola for the first time. In 2009, Samsung overtook Hewlett-Packard with total revenue of US$117.4 billion and became the world's largest technology company by sales.

In 2009 and 2010, the US and European Union fined the company, along with eight other memory chip makers, for participating in a pricing scheme that took place between 1999 and 2002. Other companies that were fined include Infineon Technologies, Elpida Memory, and Micron Technology. In December 2010, the European Union granted immunity to Samsung Electronics for acting as an informant during the investigation (LG Display, AU Optronics, Chimei Innolux, Chungwa Picture Tubes, and Canstar Display were implicated as a result of the company's intelligence ).

Despite its continued expansion, Samsung, along with its chairman Lee Kun-Hee, has developed a reputation for insecurity regarding its financial stability and the potential for future crises. After returning from a temporary retirement period in March 2010, Kun-Hee stated that "the future of Samsung Electronics is not guaranteed as most of our flagship products will be obsolete 10 years from now."

The company has set an ambitious goal of reaching $400 billion in annual revenue within ten years. The company has 24 research and development centers around the world, and since the early 2000s and in Vision 2020, Samsung has focused on technological research and development. However, a large number of online complaints indicate that the company is weak in listening to customer feedback about its technology and software design.

In April 2011, Samsung Electronics sold its HDD commercial operations to Seagate Technology for approximately US$1.4 billion. The payment was made up of 45.2 million Seagate shares (9.6 percent of the shares) valued at US$687.5 million and cash for the remainder.

In May 2013, Samsung announced that it had finally successfully tested speed-enhanced fifth-generation (5G) technology.

In April 2013, the new entry in Samsung Electronics' Galaxy S series smartphone range, the Galaxy S4, was made available for retail. Released as an upgrade to the best-selling Galaxy S III, the S4 was sold with the company's Exynos processor in some international markets.

In July 2013, Samsung Electronics forecast weaker-than-expected profits for its April-June quarter. While analysts were expecting around ₩10.1 trillion, Samsung Electronics estimated an operating profit of ₩9.5 trillion (equivalent to 9.98 trillion or US$8.83 billion in 2017). During the same month, Samsung acquired media streaming device maker Boxee for reportedly $30 million.

Samsung's mobile business chief Shin Jong-Kyun told the Korea Times on 11 September 2013 that Samsung Electronics would further develop its presence in China to strengthen its market position with Apple. The Samsung executive also confirmed that a 64-bit smartphone handset will be released to match the ARM-based A7 processor of Apple's iPhone 5s models released in September 2013.

Due to smartphone sales—especially low-cost handset sales in markets like India and China—Samsung posted record earnings in the third quarter of 2013. Operating profit rose to approximately ₩10.61 trillion (equivalent to US$9.38 billion in 2017), a figure that was boosted by memory chips sales to customers like Apple, Inc. On October 14, 2013, Samsung Electronics publicly apologized for using refurbished components from cheap desktop computers to fix high-end products. The corporation's unethical business practices were exposed the previous day by MBC TV's Current Affairs magazine, 2580.

In February 2014, Barnes & Noble announced that a new Nook Color Tablet would be released in 2014. In June 2014, Barnes & Noble announced that it would be teaming up with Samsung – a leader in Android-based tablets – to develop a co-branded Color tablet titled Samsung Galaxy Tab 4 Nook; The devices will feature Samsung's hardware, including a 7-inch display and customized Nook software from Barnes & Noble. The first Galaxy Tab 4 Nook will begin sales in the US in August 2014, with the Nook focusing on software and content, and Samsung focusing on hardware. Product specifications posted by Samsung indicate that unlike the premium quality-enhanced readers launched in 2012 (the Nook HD and HD+, which "had screens and CPUs for the best mid-level and premium tablets"), the more budget-oriented -As Samsung Galaxy Tab 4 Nook's features will be designed for lower market tier (Android 4.4.2 KitKat on 1.2GHz quad-core Snapdragon CPU with 1.5GB RAM, WiFi, and Bluetooth, in addition to 1.2MP front-facing) camera and a 3MP rear camera, a screen resolution of 1280 x 800, and a $199 retail price (about $80 more than comparable tablets that don't carry the Samsung brand).

Samsung provided sponsorship for the 86th Academy Awards ceremony (held on March 4, 2014) and, due to host Ellen DeGeneres' use of the Samsung Galaxy Note smartphone product in a group selfie photograph, which became an online viral phenomenon, the corporation announced the US Donated $3 Millions to two charitable organizations selected by DeGeneres. Samsung's official statement read: "...we wanted to donate to Ellen's charity of choice: St. Jude's and the Humane Society. Samsung will donate $1.5 million to each charity."

On April 17, 2014, Samsung announced that it was closing its eBook store effective July 1, 2014, and partnered with Amazon to create the Kindle for Samsung app, which allows Galaxy device users to use Android 4.0. And will allow you to buy and read content from Amazon's catalog. magazines and e-books, and the free book service, Samsung Book Deals, which will allow users of the co-branded app to choose one free ebook monthly from a selection provided by Amazon.

The Associated Press reported on Barnes & Noble's June 5, 2014 announcement that the bookseller would be working with Samsung to develop the Nook tablet, Associated Press stated:

"Barnes & Noble says it will continue to make and sell its $99 Nook GlowLight e-reader and provide customer support."

"The company also says it is moving its Nook employees out of their Palo Alto, Calif. offices to save money. Employees expect to move to a smaller location in Santa Clara, Calif., by July."

In Q1 2015, Samsung's profit fell 39% to USD4.35 billion due to heavy smartphone competition from Apple's iPhone 6 and 6 Plus, as well as several Android competitors.

In August 2014, Samsung announced that they had reached an agreement to acquire SmartThings. The acquisition was seen as a move by Samsung into the Internet of Things space.

In May 2015, Samsung announced a partnership with IKEA, according to the Wireless Power Consortium, to co-develop furniture that allowed Qi inductive charging at Mobile World Congress. In June, Samsung established a dedicated LFD business, Samsung Display Solutions, that caters to the company's smart range of LED products. The company's smart range of LED displays includes signage, hospitality displays, TVs, LEDs, cloud displays, and accessories. The company provides the following all-in-one customer software solutions: MagicInfo, MagicIWB, Link Sync, Link HMS, and Link Reach. The company caters to the following industries: Retail, Corporate, Hospitality, and Transportation.

On June 16, 2016, Samsung Electronics announced that it had agreed to acquire cloud-computing company Joyent. This will allow it to develop cloud-based services for its smartphones and internet-connected devices.

On 14 November 2016, Samsung Electronics announced an agreement to purchase American automotive equipment maker Harman International Industries for US$8 billion. On 10 March 2017, the acquisition was completed.

On 6 April 2017, Samsung Electronics reported that financials were good for the company in the quarter. A year ago, "memory chips and flexible displays accounted for about 68 percent of Samsung's operating profit in the last quarter of 2016, a change from previous years when the smartphone business was the main contributor."

On 2 May 2017, Samsung has been given permission by Korea's Ministry of Land, Infrastructure, and Transport to begin testing self-driving car technology. According to the Korea Herald, the company will use a customized Hyundai car for the tests.

In May 2019, for the first time in Europe, 8K display content was received via satellite without the need for a separate external receiver or decoder using a Samsung TV. At the 2019 SES Industry Day conference in Betzdorf, Luxembourg broadcast quality 8K content (with a resolution of 7680x4320 pixels at 50 frames/s) was encoded using the Spin Digital HEVC encoder (at a data rate of 70 Mbit/s), uplinked to a 33 MHz transponder on SES's Astra 28.2°E satellites and downlink received and displayed on Samsung 82in Q950RB production model TVs.

Samsung proposed a $17 billion plan to build a chip factory in Arizona, Texas, or New York in 2021. In part, the plan is a result of the United States allocating billions of dollars to ramp up domestic chip manufacturing. The National Defense Authorization Act was passed in January to reduce the country's reliance on Taiwan, China, and South Korea. The plant will employ about 1,900 people and will be commissioned by October 2022.