Samsung plans to outpace Nokia in 3 years

Samsung Electronics CEO Choi Gee-sung

By Kim Yoo-chul

Samsung Electronics plans to boost its mobile phone production in China and Vietnam next year.

The electronics giant is upbeat about 2011 and particularly in the two emerging markets, citing the higher demand for smartphones and tablet PCs in those regions.

Referring to the continued rise in the sale of its Galaxy S smartphones, Samsung intends for smartphones and other premium products to account for more than half of all production targets.

``Samsung is surpassing its bigger overseas rivals such as the overall handset sector leader Nokia as it has seen a steady increase in smartphone shares,’’ said one Samsung executive in a phone interview with The Korea Times, Tuesday.

Its three manufacturing lines in China ― Huizhou, Tianjin and Shenzhen ― will account for 60 percent of the total production, while that of Vietnam is expected to take up 15 percent in 2011.

The facilities in Brazil and India will account for 6 percent and 5 percent, respectively, a top-ranking Samsung executive who is directly involved in the matter, said.

The portion of Samsung’s line in Gumi is set at 14 percent, and mainly focused on high-end products, he said

A Samsung Electronics spokesman Shin Young-june declined to confirm this.

Samsung’s heavy dependence on the two overseas countries comes after it has revised to increase its handset shipments by some 20 percent next year to 325 million.

Officials say Samsung is aiming to outpace Nokia within the next three years and the next 12 months will be pivotal

As of the end of the third quarter, Samsung sold 199.5 million phones. In the fourth quarter, it sold 71 million, according to Samsung officials and analysts.

``With a sharp edge in memory chips and LCDs, Samsung will be able to press ahead,’’ said another executive.

Macquarie Securities expects Samsung to sell 7 million smartphones for 2011 from 2.5 million this year and says its Galaxy Tab will see a better performance in the same time period.