Samsung remains an iconic brand. It is globally respected for its flat screen TVs, LCD screens, DRAM technology, etc. But recently, the world has come to know it for the Galaxy tablet. The tablet has brought it to a new level and pushed earnings up.
It all started few years, if not months, when Chairman Lee Kun-hee transformed the company. He cut the then CEO and replaced some of the managers. He also invested in the electronics division R&D and operations to the tone of 98% new injection of resources. That resulted to the record $136 billion revenue in 2010 with about 58% profit growth.
From Tekedia analysis, we noticed that Samsung did many things right. It answered iPad with technology through Galaxy Tab. As we have reported here that it was only the Galaxy tab that actually challenged iPad. Forget the Dell Zoom, RIM Playbook and the host of other tabs, Galaxy was in another league and Apple was threatened to sue them. Of course, they countered sued. By the time this tablet finished the year of sales, it has cut Apple iPad market share from 93% to 73% while itself got 17% from zero.
The competition is still there and it is heating up. But Tekedia sees a progressive upward momentum for Samsung. Based in Seoul, South Korea and employing nearly 200,000 people globally, the Samsung Group has found the mojo, through the Samsung Electronics.
Notice that Galaxy S– its Android phone is also a hit. The phone sold 10 millions in 2010 and continues to sell globally. It was one of the products that helped Google Android to its preeminent mobile OS position today. If it continues its momentum, Nokia will lose its top spot as the global maker of phones, in few months.
Chairman Lee has done well in Samsung Group. Its DRAM business has benefited from the mobile device growth. Yet, they have to be concerned that profit fell in Q1 2011. In this industry, there is never a permanent winner. All they have to do is to ensure they stay top for a long time by executing well.