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Samsung Influenced By The Events Of Sade

Samsung Influenced By The Events Of Sade

Mar 08, 2017

The electronics industry represented by Samsung and LG is gradually subsided. On the one hand, it is the rapid rise of China's local brands, market share continues to decline. On the other hand, because of the current situation and the existence of the possibility of the loss of the Chinese market. This will be for the electronics industry as one of the pillar industries of the Korean economic recovery cast a heavy shadow.

On suspicion of bribery to South Korean President Park Geun hye and bestie Cui Shunshi, Samsung Group, South Korea's largest enterprise "Prince", Samsung Electronics vice president Li Zairong recently by the court approved the arrest.

Coupled with the previous Note 7 bombings and other events, there are top executives of Samsung Electronics believes that now is the most serious crisis since the group was founded in 1979.

"Samsung has a cold, South Korea will have a fever." This is not exaggeration.

It is understood that Samsung chamber of Commerce started as a small rice shop, Samsung has become one of the world's leading technology companies in decades.

From the data point of view, in 2011, Samsung Group's $149 billion revenue accounted for 13% of South Korea's GDP, Samsung Group revenues of $305 billion, accounting for 21.67% of Korea's GDP in 2014.

Samsung Electronics, which is a flagship enterprise, in 2016 revenues of up to 201 trillion won ($174 billion), operating profit of 29 trillion and 200 billion won ($25 billion 600 million). Up to now, the market value of Samsung Electronics up to $241 billion 100 million (about 16529 yuan), ranking the world's top fourteenth.

In South Korea within the scope of the market value of Listed Companies in the top ten, Samsung has a higher market value than nine companies.

It is reported that in the international market, Samsung Electronics production LCD TV, LED TV and semiconductor products sales topped the list.

At the same time, Samsung is the world's largest memory chip maker, Samsung mobile phone has long-term more than 30% share in the international market, and its production is not only equipped with Samsung's display in computer, television, mobile phone and other devices, also supply other manufacturers, including competitors, many TV manufacturers are using China Samsung display. Even Samsung and Samsung iPhone Apple Corp lawsuit continues to produce a large part of the parts provided by Samsung, including processors, DRAM flash and other core components as well as part of the display.

Samsung Electronics in South Korea is indeed pivotal. Behind this, it is a long time in the Korean electronics industry has a strong competitive power in the world.

However, this situation is being rapidly broken by rising Chinese technology companies.

The most typical example is the domestic mobile phone, brisk performance in the last few years, in the fierce competition, Samsung mobile phone market share will gradually erode.

Data show that in 2014, with the rise of millet and HUAWEI and other domestic mobile phone companies, Samsung's market share fell to 12.1%, by 2015, millet catching up; in the China's market share was 7.7%, and the top five missed.

According to the third party statistics agency IDC released the 2016 global smart mobile phone shipments data statistics, the fourth quarter of 2016, HUAWEI, OPPO, vivo China shipments were ranked third in the world to fifth, far exceeding the growth rate of the Samsung three brand.

In addition, in the field of chips, millet company has also recently released a high-end positioning of the independent research and development chip surging S1, together with HUAWEI and other domestic chip manufacturers to apple, Samsung and other offensive.

In February 27th, the British research firm IHS Technology released the January 2017 global LCD panel shipments, China largest panel makers BOE Technology Group (BOE) for the first time to first. South Korea has been the top of the LG monitor fell to second. Chinese in the world's largest market, the BOE in the field of IT as the core, increasing supply, from the South Korean manufacturers took the share.

But it should also be noted that in the large TV display project, LG's market share is still up to 21.4%, ranking first. Then Innolux 16.3% BOE, ranked third, 15.9%.

Although the BOE currently occupies the world first shipments, but South Korean companies LG and Samsung's total shipments reached 31.5%, more than 22.3% boe.

This means that South Korea still has an advantage over the large panel, such as LCD TV, ultra high definition TV, etc.. At the same time, South Korean companies share technology and market share advantage, but IHS expects the BOE will soon join the competition in the industry. The year 2017 will be a year for domestic panel makers to expand their business areas and to enter the large panel market dominated by Korean companies.

The data also shows that the third quarter of 2016, South Korea's share in the global TV market is still the first 32.2%. However, the market share of Chinese enterprises has reached 31.9%, the gap between the two narrowed sharply to 0.3 percentage points.

Chinese companies are catching up with Korea at an alarming rate. South Korea Economic Research Institute released in July last year, South Korea said in a report on the competitiveness of enterprises, the competitiveness of enterprises in the eight indicators of corporate earnings, growth, production scale, patent application, the amount of overseas mergers and acquisitions of five parts, Chinese enterprises significantly more than the South Korean enterprises.

Finally, as one of the core of the South Korean economy pillar industry, the electronics industry is not ideal, but also South Korea's economic crisis.

In the face of a worldwide economic downturn now, if the South Korean Samsung and LG electronics manufacturing enterprises to Chinese lost market, South Korea's economic recovery will also cast a heavy shadow. I do not know whether to bear this loss, South korea.