Samsung Electronics at fork

By Kim Yoo-chul

Samsung Electronics stands at a major crossroads, declared chief executive Choi Gee-sung, Monday.

In an event to mark the technology giant’s 42nd birthday, the top executive said the Suwon, Gyeonggi Province-based outfit will gain sizable acquisitions and invest in existing and new businesses to ensure corporate sustainability.

``The global consumer electronics industry is facing a big turning point amid pessimistic views on slowing economic growth and uncertainties. Samsung needs to be aggressive,’’ said Choi in an opening speech at the ceremony packed with some 400 Samsung employees and executives in its headquarters in downtown Seoul.

Previously, Samsung was keen to strike ``small deals’’ rather than pour money into bigger deals.

Years ago Samsung dropped its ambitious $5 billion bid to buy U.S.-based flash memory chipmaker SanDisk preferring to stay low key and within the ``millions of dollars’’ range in merger and acquisition (M&A) deals.

A Samsung spokesman confirmed the remarks by its CEO Choi, and declined to dish the dirt on potential M&As.

``The next decade is vital for Samsung because the global electronics industry is expected to undergo a complete overhaul. Based on our edge in manufacturing, there is a need to include software development on the existing business structure to maintain our current leadership,’’ said Choi.

Samsung reaffirmed its goal to reap $400 billion in revenue by the end of 2020, enough to rank it among the world’s top 10 companies by then.

``The following three factors _ a leading semiconductor company, the biggest television manufacturer and the worlds’ 17th firm in terms of brand value ($23.4 billion) _ are telling us that Samsung is a global company. But we need to create more value,’’ he said.

Such upbeat tones from Choi come after Samsung is aiming to invest at least a record 38 trillion won in its key facilities next year from 31 trillion won this year.

More urgently, legal battles with Apple continue to deepen as two separate court cases in Italy and France ruled in favor of the U.S. rival, dealing a heavy blow to Samsung.

Not to be outdone, Samsung nevertheless finally surpassed Apple to become the world’s biggest smartphone maker, gaining 45 percent in handset shipments during the third quarter of this year thanks to the buoyant sales of its Galaxy S and S II Android-based smartphones.

``Samsung is the target for opponents overseas. Survival will require the company to change its way of thinking and that means Samsung must fully open to listen to views from others and communicate,’’ said Choi.

Samsung has managed to keep pace with large leaps in the consumer electronics industry unlike its once cross-town rival LG.

LG has since returned to ownership control after marketing expert Nam Yong resigned from the top post to take responsibility for failing in the smartphone arena.

Samsung was also slow to respond to the smartphone evolution but a prompt decision-making structure and advantages in manufacturing resulted in a Galaxy of smartphones.

As for its television business ― another caterpillar in earnings along with its semiconductors ― Samsung is trying hard to gain more first-mover advantage in the growing market for Internet-enabled and 3D-functioning electronics.