NEW YORK Banking on the company’s core component strengths and leading supplier status, Samsung CEO Jong-Yong Yun said giving consumers myriad choices for next-generation electronic products would ensure company’s continued growth.
Yun, speaking at Samsung's Global Road Show here on Monday (Sept. 26), gave a high-level overview of the company’s future growth strategy. He provided few details, but said Samsung would emphasize increased research and development and continue to introduce products that combine various digital technologies.
"Successful technology companies must respond to the growing power of consumers’ choice," Yun said. "Samsung will not only respond to this shift of power, it will take the lead in this area by providing what we call 'unlimited choice,' creating exciting products that combine functionality and styling in almost any combination to suit a customer’s lifestyle."
To achieve these goals, Yun said Samsung would allocate $5.2 billion in 2005 for R&D spending, or about 9 percent of the company’s anticipated revenue, and expand its commitment to its 17 global R&D centers.
Samsung's growing emphasis on design and innovative technology has helped its sales and earnings increase each year since 2001. However, the company’s march to greater prosperity has hit some bumps this year.
In the second quarter
, Samsung posted earnings of $1.62 billion on sales of $13.06 billion. Earnings slid 46 percent and sales 9.3 percent from the same quarter a year earlier, which the company attributed to weak pricing for memory chips and thinning margins on thin-film-transistor (TFT) LCDs and mobile phones.
Samsung retains its leading position in areas like LCDs and memory chips. Yun cited statistics stating the company has a 31 percent market share in DRAMs, 28 percent in SRAMs, 27 percent in flash memory, and 22 percent in TFT-LCDs.
DisplaySearch Inc. president Ross Young, who attended the presentation, said Samsung regained its market-leading position in TFT-LCDs recently, bumping rival LG.Philips LCD to second place.
Samsung showcased several displays at the presentation, including what it claims is the largest TFT-LCD display, at 82 inches diagonally; the largest plasma display, measuring 102 inches; and the largest OLED display, at 40 inches.
The company also introduced a high-speed color laser printer with a 20-page-per-minute output, and a portable media player with Digital Multimedia Broadcast capability.
As befitting a company emphasizing advanced technology, Samsung made extensive use of multimedia graphics and sound throughout the presentation to pitch its products. At one point, Samsung also marched out actor William Shatner, who, making tongue-in-cheek references to his leading role in the 1960's TV series "StarTrek," also pitched the company's technology.