Who could possibly block Samsung's way Today Samsung is sure the lion in the jungle. No wonder Samsung Baseball team's mascot is a lion. Here are the proofs. Samsung Electronics made a maximum operating profit record this year. Consolidated revenue was KRW 34.64 trillion. It is a 21 percent increase compared to the first quarter of 2009. Operating profit reached KRW 4.41 trillion which is 28 percent growth from the previous quarter and a 643 percent increase compared to a year ago. And net proceeds were KRW 3.99 trillion. The entire index obviously proves their power. Even though it has been a slack season, expanding market presence and continued profits made great improvement.
Semiconductor leads the move
In particular, Semiconductor has expanded their territories. The expansion is due to price stability, favorable market conditions and cost-competitiveness. The micro fabrication process and expansion in value-added products, could stretch Samsung's profitability. Samsung accomplished 24 percent in operating profit. Samsung maintains its position as a king and just widened the gap against competitors. Ever since Semiconductor made a full recovery in the third quarter of 2009, the operating profits rose up to KRW 2 trillion. The main commodities such as DRAMS and NAND flash were helpful in reaching the target. Other than Semiconductor, LCD grew compared to a year before, but it is because of the China market's sustainable growth and cost stability due to the lack of supplies for parts and an inventory shortage. Furthermore, sales profit and operating profit both slightly decreased from a year ago. (Sales profit approached KRW 6.85trillion and operating profits is KRW 0.49trillion).
While the market outlook seems to be firm, Semiconductors will be focused on products expanding the gap with competitors based on technology and cost competitiveness advantages. Also, they plan to accelerate the transition process on DLAMS and to extend its high-capacity products group. NAND flash will be built up by sales of 30 Nano process-based products and 20 Nano level NAND flash in full-blown mass production, so that they keep their competitive advantage.
Besides semiconductors, Samsung intends to confront the trend of the huge demand for Smartphones, mobiles, and DTV products, efficiently. And they continuously push out mobile AP and the system LSI to strengthen the business.
The LCD market is projected to maintain steady demand due to the enlargement of the premium product market and special World-cup orders. And Samsung is going to stimulate the sale of technical technically differentiated products and profit-orientated goods. And mobile phone joins the trend Although it is slight growth compared to the previous quarter. Android embedded and affordable Smartphones are supposed to advance and to extend into the 3G market centering in China. Since the market situation is getting better, Samsung plans to release Android phones to build leadership and to carry on double digit profit through model-mix improvement.
Truly, Samsung takes the direction the way they want. It seems like Samsung is not likely going to turn over the king of lions title easily.