Jeffrey Katzenberg, right, CEO of DreamWorks, checks out Samsung Electronics’ 3D LED-backlit LCD televisions with other unnamed executives on the sidelines of his participation earlier this year at the Consumer Electronics Show or CES in Las Vegas. / Courtesy of Samsung Electronics |
By Kim Yoo-chul
Staff reporter
Consumer product manufacturers are constantly haunted by the question: What's next?
How well a firm can answer and follow up on it more or less determines whether it can remain a market leader or overtake the pacesetter.
Samsung Electronics has so far come up with all the right answers, and the evidence is its leading role in the markets for a wide range of electronic gadgets and components.
Two examples are the Galaxy S mobile phone that is pitted against the iPhone and its selection of three-dimensional (3D) televisions.
Since 2006, Samsung has been leading the global flat-screen television market after passing Japanese rival Sony.
Although LCD TVs are still one of Samsung's cash-cows, it is seeing a rise in 3D TV sales.
High unit prices and still-developing technologies are still cited as the biggest drawbacks for a faster expansion of the 3D TV market.
But Samsung is positive it will have a bigger share of the 3D TV market ahead of Sony, Panasonic and LG Electronics.
"Samsung sold over 600,000 3D TVs in just the first six months of this year. We are aiming to sell over 2.6 million throughout the year," said a Samsung Electronics spokesman Kim Se-hun, adding that the target may in fact prove to be conservative.
Samsung plans to sell a maximum of 50 million flat-screen TVs including those with plasma technology in 2010, a top-ranking Samsung executive told The Korea Times.
Samsung plans to accelerate efforts to build what it calls the "3D total entertainment system" with the releases of its full 3D lineup ― LCD, PDP and LED-backlit LCD. Its "3D-solution" lineup features Blu-ray player-home theater-content glass.
Samsung is driving up its global marketing campaign from North to South America, Russia, Europe and China.
"It's a new market with a greater growth potential. Samsung wants faster proliferation of 3D televisions globally. Interest in 3D has grown fast, both among experts and the general public," Kim said.
The consumers hold the key to its success, since their change of preference kills the products with a great potential.
"That's why we are forming a united front with James Cameron to develop more 3D content and South Korea's leading entertainment companies to produce more 3D-enabled programs," said senior Samsung spokesman Kevin Jeong.
3D technology was highlighted by the success of the Hollywood blockbuster "Avatar," which made its debut at the end of last year.
"3D TV will be more accessible in 2013," said another Samsung executive.
iSuppli, a market research firm, forecasts 4.2 million 3D TV sets will be sold this year, expecting the sales to go up to 78 million in 2015.
Galaxy S ― Samsung's answer
 Amid the rapidly expanding global smartphone market, Samsung's challenge to sector leader Apple of the United States is the Galaxy S.
Although more work needs to be done to upgrade Samsung's software-related technologies, the Galaxy is seeing an initial boom from markets.
Analysts have no big questions that Samsung’s response in dealing with smartphones was faster than expected, considering its manufacturing focused business structures.
According to SK Telecom, more than 500,000 devices were sold in just over a month, in South Korea alone. Analysts interpret the sales curve as "quite impressive." SK Telecom, which is the nation's top mobile carrier, sells the Galaxy.
"Samsung is aiming to sell 10 million Galaxy S phones this year," said Shin Young-june, who is in charge of Samsung's public relations for handsets.
In the United States, the birthplace of smartphones, Samsung just agreed to sell the U.S. version of the Galaxy via all major carriers including AT&T, T-Mobile, Sprint Nextel and Verizon Wireless.
Shin of Samsung declined to comment on its internal sales target of the Galaxy in America.
But market analysts say Samsung's aggressiveness in marketing came at the right time, as Apple has been suffering from a slide in its corporate image due to a glitch in the iPhone 4.
Market research firm Opinium Research recently polled consumers on their reaction to the antenna problem that has dogged the iPhone 4 since its launch in June. The researcher found 57 percent of respondents would not purchase an iPhone 4.
45 percent of existing iPhone 3GS users were found saying that the antenna problem has caused them to look elsewhere for their next phone.
According to industry sources, AT&T and T-Mobile were selling 20,000 Galaxy Ss on a daily basis, respectively, though Shin declined to confirm.
The Galaxy S is selling in some 50 countries via 400 carriers. Samsung is planning to introduce more Galaxy models in the second half of this year.
"The smartphone latecomer Samsung hopes to get more responses especially from North American consumers. In terms of the device’s specifications, it is quite competitive," said an analyst at a Europe-based brokerage, asking not to be identified.
It has a 4-inch AM OLED touch-screen, 5-megapixel camera with flash and auto-focus, HSPA and Wi-Fi connectivity.
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