By Kim Yoo-chul
Even though last year turned out to be a damp squib for Samsung Electronics, the company is looking forward to this year.
Banking on its confidence in the just-unveiled S6 smartphone, Samsung feels that the device has the potential to easily break the company's previous sales records.
Samsung Electronics' senior executives remained upbeat about the initial response for the device from global carriers and the company's key distribution channels.
"You have to agree with me. The initial response to the S6 was really good, wasn't it?" Samsung Electronics mobile chief and one of the firm's CEOs Shin Jong-kyun told reporters at Wednesday's weekly meeting with senior executives at Samsung Group of affiliates in Seocho, southern Seoul, March 11.
Before the launch of the S6, the mobile boss was tight-lipped in answering any questions by local reporters about the dismal performance of the S5.
The declining sales of the S5 triggered Samsung to think differently and opt for a radical new design with the S6, said Shin.
Top executives at Samsung's tech units, whose components are in the S6, also hoped that the S6 will help them strengthen their corporate bottom line.
"Yes. I believe the S6 will help us generate increased profits," Samsung SDI CEO Cho Nam-seong told reporters. Hit by the sluggish sales of the S5, SDI saw a big profit decline, last year. The S6 uses Samsung SDI-manufactured lithium batteries.
Samsung Electronics needs to sell the S6 and S6 Edge variants in vast quantities to build up income and profits, as the latter crashed by 60 percent last year.
Profit margins on the S6 Edge with the curved display will be larger than that of the S6.
In a separate meeting with reporters, Samsung Display CEO Park Dong-geun confirmed the affiliate supplied curved displays for the s6 Edge.
"I will definitely buy the S6 Edge," Park said.
No company likes to manufacture more handsets than it can sell; therefore, the early response by top company executives and indications that Samsung has created value and desire in the S6 and S6 Edge means it should be able to sell enough to overcome the troubles of last year.
Meanwhile, the company's television chief said Samsung, which is also the world's biggest TV manufacturer, is in discussions for another acquisition deal to put "innovative DNA" into its electronics business.
"Open Innovation is the top phrase being embraced by the industries. Samsung Electronics is eyeing more mergers and acquisitions (M&A) deals," Kim Hyun-seok, president of the company's visual display division, told reporters.
Since May last year, Samsung acquired eight companies.
Kim said Samsung has plans to fill out its weaknesses by purchasing companies that have competitive patent portfolios and a qualified workforce.
The Samsung president said its first quantum dot TV models are being distributed to major outlets and channels, globally.
"Therefore, it's too early to talk about the sale of our SUHD TV, the brand name of our quantum dot TV," Kim told reporters.
He said the outlook for the global TV industry will be uncertain throughout this year. "As the global economy isn't that good, I don't know whether or not the demand for TVs will remain strong like before."