Boston, MA 02/12/2013 (wallstreetpr) – Alertness against complacency and relinquishment has been one of the prime movers behind Samsung Electronics Co.’s transformation from a television set maker with market valuation barely above $2 billion to a $200 billion electronics gadgets giant.
To their employees, the chairman, Lee Kun Hee said, “Forget about the past and start anew. We must search out new businesses that Samsung’s survival depends on.”
Samsung’s advancement into the flat-screen TV business has swallowed up a huge share of Japanese rivals Sony Corp. that trades at the NYSE as Sony Corp. (ADR) (NYSE:SNE) and Sharp Corp. (PINK:SHCAY)’s market share. The 14-year monopoly enjoyed by Nokia Oyj. in the cellular phone business has been cut short by Samsung’s Galaxy series of phones. Chips-maker Elpida Memory Inc. has been bankrupted by Samsung’s persistent interest in the chip-manufacturing business. And now, Apple Inc. (NASDAQ:AAPL)’s products are being outsold.
Apple’s relationship with Samsung has taken a new turn following the $1 billion lawsuit filed by the California-based manufacturer of iPhones against the Korean multinational.
Samsung has surpassed Apple’s market share in the Smartphone business, rising from 19.9% to 30.4% last year.
Samsung has been relying on Google Inc. (NASDAQ:GOOG)’s Android software as well as Microsoft Inc (NASDAQ:MSFT)’s new wireless technology. It has thus developed strong ties with two of Apple’s biggest rivals in the U.S. Lee Jin Woo, a South Korean Samsung stock holder said, “Samsung is trying to get ready for a possible breakup with Apple. Samsung will make another big push into tablets.”
The competition between the two Smartphone makers will be worth a watch because of the $400 billion market at stake and the contrasting business designs of the two.
However Apple, which relies on Samsung for processors, will have to look for alternative suppliers to meet the rising demand. Hence, complete breaking up of the ties is a lengthy and complex issue since alternative suppliers like Taiwan Semiconductor manufacturing Company, AU Optronics Corp. (NYSE:AUO) and Innolux Corp. will have to scale up their manufacturing capabilities to fill in the void.
Analysts have put the estimate of net income in 2013 as $27.4 billion. In the last quarter, Samsung’s net income rose as much as 76%. Currently, majority of the profits come from the phone segment.
Woo Nam Sung; the System LSI head has said that Samsung is a whole company. He was quoted as, “The only company that has logic, memory and display is Samsung.”
Analysts’ recommendations to buy Apple’s stock fell on deaf ears as investors have given a thumbs-down to the shares. Software rivals like Google have been instrumental in lowering Apple’s market value.
Apple’s commitment to the high-end devices has cost it significant customer-base in the middle-range segment.
When the current heir to the business took over, Samsung was not in its prime, facing stiff competition from Hitachi Ltd. (PINK:HTHIY), Toshiba Corp. (PINK:TOSBF) and NEC Corp. However, the results of the company’s commitment and seven-day- a- week work culture are here to see.
Samsung was sued by Apple of $1 billion after the latter accused Samsung of copying designs in its newly-launched Smartphone. Experts say that Samsung is making fast progress in indigenous designs and innovations. Mobile companies are seen as the most sought after companies to be employed in. These days, a patent war between Apple and Samsung has resulted in the relationship between the two getting even sourer.
Sony Corporation (ADR) (NYSE:SNE) shares were down by 2.33% and currently trading at $14.64. Sharp Corporation (ADR) (PINK:SHCAY) shares were down by 3.84% and currently trading at $3.51. Apple Inc (NASDAQ:AAPL) shares were down by 0.87% and currently trading at $475.89. Google Inc (NASDAQ:GOOG) shares were up by 0.50% and currently trading at $786.16. Microsoft Corporation (NASDAQ:MSFT) shares were down by 0.13% and currently trading at $27.82. AU Optronics Corp. (ADR) (NYSE:AUO) shares were up by 0.26% and currently trading at $3.90. Hitachi, Ltd. (ADR) (PINK:HTHIY) were down by 0.88% and currently trading at $56.60. Toshiba Corp(PINK:TOSBF) shares were up by 0.18% and currently trading at $4.51.
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