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Samsung Electronics (SEC, Korean: 삼성전자, KRX: 005930, KRX: 005935, LSE: SMSN, LSE: SMSD) is a South Korean multinational corporation, specializing in electronics and information-technology (IT), and is headquartered in Samsung Town, Seoul.[1][2] SEC is the flagship subsidiary of the Samsung Group and comprises assembly plants and sales networks in 61 countries across the world, employing approximately 160,000 people.[5]
In 2009, the company became the world's-largest IT producer, surpassing the previous leader, Hewlett-Packard.[6] Its sales revenue in the areas of display devices (LCD and LED) and memory chips is the world's highest.[7]
SEC has dominated the world television market in the latter half of the 21st century's first decade, having sold the most televisions globally from 2006 to 2010 (projections in 2010 indicated that this trend would continue). In the global LCD panel market, the company has maintained the leading sales position for eight years in a row.[8][unreliable source][citation needed]
With the introduction of the Samsung Galaxy S mobile phone, the company's smartphone lineup has retained second place in terms of global sales figures for a significant period of time.[9] Samsung has also established a prominent position in the tablet computer market, with the release of the Android-powered Samsung Galaxy Tab to compete with the iPad from Apple.[10]
Samsung Electronics was founded in 1969[11] in Suwon, South Korea as Samsung Electric Industries, originally manufacturing electronic appliances such as televisions, calculators, refrigerators, air conditioners and washers. By 1981, the company had manufactured over 10 million black-and-white televisions. In 1988, the company merged with Samsung Semiconductor & Communications.
The company has undergone considerable growth in a business notorious for cyclical fluctuations. Founded in 1938 as a food-processing and textile purveyor, the parent group entered the electronics business as late as 1969 when it created an electronic component subsidiary. The decision to found the subsidiary was based upon the fast-growing domestic demand for electronic goods at the time.
In 1970, one year after its founding, the Samsung Group established another subsidiary, Samsung-NEC, jointly with Japan's NEC Corporation to manufacture home appliances and audiovisual devices. In 1974, the group expanded into the semiconductor business by acquiring Korea Semiconductor, one of the first chip-making facilities in the country at the time. The acquisition of Korea Telecommunications, an electronic switching system producer, was completed at the start of the next decade in 1980.
In February 1983, Samsung's founder, Lee Byung-chull, made an announcement considered to be an epoch-defining occasion. Dubbed the "Tokyo declaration", Lee publicly stated that his company would be entering the DRAM (dynamic random access memory) business; one year later, Samsung became the third company in the world to develop the 64kb DRAM, together with the United States and Japan.[citation needed] Since Lee's 1983 declaration, Samsung continues as a pioneer in the memory chip-manufacturing industry, a status that has spanned almost three decades.
By the 1990s, Samsung was already one of the largest companies in South Korea, as it continued to develop a large network of supplier and partner companies as the basis for increasing its own revenue-generating power. The company's strength was proven during a subsequent economic downturn, as whilst most other high-tech companies were hit by cash flow problems after the 1997 Asian financial crisis, Samsung avoided financial difficulties through broad-based structural reforms. Following the onset of the crisis, the company became more powerful, and after the crisis subsided, the company emerged as a global corporation. For four consecutive years, from 2000 to 2003, Samsung posted net earnings higher than five-percent; this was at a time when 16 out of the 30 top South Korean companies ceased operating in the wake of the unprecedented crisis.[12][13]
In 2009 and 2010, the US and EU fined the company, together with eight other memory chip makers, for its part in a price-fixing scheme that occurred between 1999 and 2002. The list of other companies included Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology.[14][15][16][17][18] In December 2010, the EU granted immunity to Samsung Electronics for acting as an informant during the investigation (LG Display, AU Optronics, Chimei InnoLux, Chunghwa Picture Tubes and HannStar Display were implicated as result of the company's intelligence).[19][20]
In April 2011, Samsung Electronics sold its HDD commercial operations to Seagate Technology for approximately US$1.4 billion. The payment was composed of 45.2 million Samsung-Seagate shares (9.6 percent of shares), worth US$687.5 million, and a cash sum for the remainder.[21]
At the commencement of the 21st century, company representatives stated that Samsung's primary goal was to catch up with its Japanese rivals. As of 2011, the corporation is outperforming the major Japanese electronics manufacturers in many categories—in terms of global market share, Samsung was number one in flat-panel televisions, memory chips and mobile handsets; and it assumed the leading sales position for smartphones, overtaking Apple in the third quarter of 2011.[22] Previously, in 2010, Samsung was one of the top suppliers in the home appliances market.[23]
In 2005, Samsung surpassed Japanese rival, Sony, for the first time to become the world's twentieth-largest and most popular consumer brand, as measured by Interbrand.[24] In 2006, BusinessWeek rated Samsung in twentieth place on its list of global brands and second in the electronics industry.[25] The publication also ranked Samsung as twentieth in terms of innovation.[26]
In 2007, Samsung Electronics' handset division grew beyond its rivalry with American company, Motorola, making it the world's second-largest mobile-phone maker.[27] In 2009, Samsung became the world's largest technology company, overtaking both Siemens and Hewlett-Packard, with a revenue of US$117.4 billion.[28] Furthermore, the company's semiconductor division is the world's largest producer of memory chips and the second largest for semiconductor manufacturing.[29] (this has been the case for DRAM and SRAM for over a decade).[citation needed]
To become the top brand in the electronics business, Samsung has invested heavily in marketing and branding. In 1996, the company devised a plan outlining a commitment to sponsorship for major sporting events and it subsequently became an official sponsor for the 1998 Winter Olympics held in Nagano, Japan. Samsung has become a brand that is frequently associated with large sporting events.[30]
Despite continual growth in the global technology business, Samsung, along with its chairman Lee Kun-hee, has developed a reputation for displaying insecurity regarding its financial stability and the potential for future crises to arise. Since returning from a temporary retirement period in March 2010, Kun-hee stated that "Samsung Electronics' future is not guaranteed because most of our flagship products will be obsolete in 10 years from now."[31]
Leading into the 21st century, brand recognition of the company amongst global consumers has increased steadily.[citation needed] According to the 2011 "Top 100" brand list compiled by Millward Brown, a British brand consultancy firm, Samsung ranked at 67th position and was one of the world's most valuable brands,[32] with a period of significant growth during the 2009–2010 period (the corporation's brand value, estimated to be as much as US$1.1 billion, grew by 80 percent during this time).
In the "World's Most Reputable Companies" 2011 list, published by the Reputation Institute, Samsung Electronics was placed at 22nd,[33] consistent with the previous year (a significant advancement occurred between 2009 and 2010 when the company leaped from 75th position[34]). The "Global Reputation Pulse" project, compiled by the US consulting company since 2006, reflects survey results collected from consumers in 24 different countries regarding 600 large global corporations; corporations with a reasonable level of recognition amongst the public and responsible for commercial activity (wholly owned subsidiaries were omitted). Respondents were permitted to only answer questions about companies they were familiar with and that shared the same home nation as the respondent.[35] The project employs a methodology entitled the RepTrak™ Pulse, a system that seeks to measure the level of "Admiration, Trust, Good Feeling and Overall Esteem" present in consumers' perceptions of the analyzed organizations.[36]
The company was also ranked 11th in the "50 Most Innovative Companies 2010" list put out by BusinessWeek, a five-notch increase from the previous year's 16th. The ranking, collated jointly by the U.S. weekly magazine and Boston Consulting Group since 2005, is based on answers to innovation-related survey questions asked to executives of global corporations. While survey answers take an 80-percent weight to the compilation of the ranking, the remaining 20 percent is accounted for by annual share appreciation (10 percent) and three-year average sales revenue and profit margin (5 percent each), respectively.
The company had emphasized innovation in its management strategy since the early 2000s and it again highlighted innovation as part of core strategies when it announced the Vision 2020 in which the company set an ambitious goal of reaching the $400-billion sales revenue within ten years. In order to cement its leadership in the areas of memory chip and television production, the company has invested aggressively in research and development. The company has 24 research-and-developement centers around the world. In the 2010 BusinessWeek innovation ranking, Apple and Google retained the leading positions as in the 2009 list, followed by Microsoft, which gained one notch from 2009's fourth place.
Meanwhile, the company took the 33rd place in the "World's Most Valuable Brands 2010" list made public by Forbes magazine. The magazine said that the company's brand value was as much as $12.8 billion with an average sale revenue growth rate of 17 percent for the past three years.
In the first quarter of 2012, the company became the highest-selling mobile phone company when it surpassed Nokia with 93.5 million units sold and 82.7 million units sold, respectively. Samsung also took pole position in smartphones with "brisk sales" of its Galaxy SII smartphone (and newer Galaxy Note device).[37]
The company focuses on four areas: digital media, semiconductor, telecommunication network, and LCD digital appliances.[38]
The digital-media business area covers computer devices such as laptop computers and laser printers; digital displays such as televisions and computer monitors; and consumer entertainment devices such as DVD players, MP3 players and digital camcorders; and home appliances as refrigerators, air conditioners, air purifiers, washers, microwave ovens, and vacuum cleaners.
The semiconductor-business area includes semiconductor chips such as SDRAM, SRAM, NAND flash memory; smart cards; mobile application processors; mobile TV receivers; RF transceivers; CMOS Image sensors, Smart Card IC, MP3 IC, DVD/BD/HD-DVD Player SOC and multi-chip package (MCP); and storage devices such as optical disc drives and formerly hard disk drives.
The telecommunication-network-business area includes multi-service DSLAMs and fax machines; cellular devices such as mobile phones, PDA phones, and hybrid devices called mobile intelligent terminals (MITs); and satellite receivers.
The LCD business area focuses on producing TFT-LCD and organic light-emitting diode (OLED) panels for laptops, desktop monitors, and televisions.
Samsung Print was established in 2009 as a separate entity to focus on B2B sales and has released a broad range of multifunctional devices and printers and more.
The company manufactures products in a number of categories:
Since 1993, the company has kept the title of the world's-largest memory chip maker. In 2009, it began a strategy of "Green Memory" by which it increased the global DRAM market share to 33 percent. It also started mass-producing 30 nm-class NAND flash memories in the same year whose world share rose as high as 42 percent.[39] It succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nm-class NAND flashes, both of which were the first time in the world.[40]
According to market-research firm Gartner, during the second quarter of 2010 Samsung Electronics took the top position in the DRAM segment due to brisk sales of the item on the world market. Gartner analysts said in their report, "Samsung cemented its leading position by taking a 35-percent market share. All the other suppliers had minimal change in their shares." The company took the top slot in the ranking, followed by Hynix, Elpida, and Micron, said Gartner.[41]
Another market researcher IC Insights predicted that Samsung would become the world's-biggest semiconductor chip supplier by 2014 when it surpasses Intel. For the ten-year period from 1999 to 2009, the company's compound annual growth rate (or CAGR) has been 13.5 percent, compared with that for Intel paltry 3.4 percent. Extrapolating this trend to the future, Samsung will be able to catch up with Intel by the year 2014, estimated IC Insights.[42] IC Insights also said that Intel's 2009 sales revenue had been 52 percent higher than that for Samsung, but that differential narrowed to only 21 percent during the second quarter of 2010[43]
Another hitherto not-well-publicized area where the company had significant business in for years is the foundry segment. It had begun investment in the foundry business since 2006 and now positioned it as one of the strategic pillars for semiconductor growth.[44]
The company's televisions and display products have undergone a race toward ever-slimmer panels. In 2009, it succeeded in developing the super-slim panel for forty-inch LED televisions, with the thickness of 3.9 millimeters (0.15 inch). Dubbed the "Needle Slim", the panel is as thick (or thin) as two coins put together. This is about a twelfth of the conventional LCD panel whose thickness is approximately 50 millimeters (1.97 inches).
While reducing the thickness substantially, the company could maintain the performance as before, including full HD resolution, 120 Hz refresh rate, and 5000:1 contrast ratio.[45]
In October 2007, Samsung broke the ten-millimeter barrier by introducing the ten-millimeter thick, 40-inch LCD television panel, followed in October 2008 by the world's first 7.9-mm panel.[46] Samsung is leading the industry by developing panels for 24-inch LCD monitors (3.5 mm) and 12.1-inch laptops (1.64 mm).[47]
According to company officials, the biggest factor in reducing the panel thickness was the LED backlight. They are optimistic that their company could cut television width by 40 percent within two years from now.[48]
By 2004 the company, South Korea's largest conglomerate, was the world's-largest OLED manufacturer, producing 40 percent of the OLED displays made in the world,[49] and as of 2010 has a 98% share of the global AMOLED market.[50] The company is leading the world OLED industry, generating $100.2 million out of the total $475 million revenues in the global OLED market in 2006.[51] As of 2006, it held more than 600 American patents and more than 2,800 international patents, making it the largest owner of AMOLED technology patents.[51]
The company's latest AMOLED smartphones use its Super AMOLED trademark, with the Samsung Wave S8500 and Samsung i9000 Galaxy S being launched in June 2010. In January 2011, it announced its Super AMOLED Plus displays[52] – which offer several advances over the older Super AMOLED displays – real stripe matrix (50 percent more sub pixels), thinner form factor, brighter image and an 18 percent reduction in energy consumption.
Four years in a row, the company has taken the top spot in the world TV market, with the launch of best-selling items. In 2009, it sold as many as 31 million flat-panel televisions, maintaining the top position for four consecutive years in terms of world market share.[53] In early 2010, the company had set the year's sales goal at 39 million units (including 10 million LED televisions).[54]
According to DisplaySearch, the U.S. market research and consulting firm, Samsung is forecast to take a 27-percent share for the global television market in the second quarter of 2010 while LG Electronics accounts for 26.2 percent of the market. The market researcher predicted that the company's leadership would continue in 2011[55]
The company is creating a new market by introducing the "Finger-Slim" LED television. Launched in March 2009, the super-slim LED television has thus far been sold as many as 2.6 million units. In 2009 alone, it was sold more than two million units, which brightens the future prospect.[56]
The company has led the flat-panel television market for the past five years with the 2006 introduction of its "Bordeaux" line, followed by the 2007 Bordeaux model, the 2008 "Crystal Rose" line, and the "Finger-Slim" in 2009.[57] The company retained the leading position by successfully selling more than 1 million 3D televisions as of August 2010.[58]
This company is developing new LED television models too. After expanding its television lineups, Samsung became the industry-first ten-million-seller challenge. One of the new products to watch is the full HD 3D LED television that was launched the first time in March 2010.[59] Combining LED features with 3D functionality, the new 3D television is expected to lead the market for years to come. Samsung showcased the new television in the International Consumer Electronics Show (CES 2010) held in Las Vegas early this year.[60]
In 2009, the company's televisions were selected in major U.K. publications and retailers as the best television of the year. For example, its LED TV 7000 series was the winner of the "Gadget Awards 2009" by T3, a UK electronics magazine.[61] The magazine, in its news article on "ten reasons why you should buy Samsung LED TV", listed superior picture quality, slim design, energy efficiency and connectivity.[62]
Samsung sold more than one million 3D televisions within six months of its launch. This is the figure close to what many market researchers forecast for the year's worldwide 3D television sales (1.23 million units).[63] It also debuted the 3D Home Theater (HT-C6950W) that allows the user to enjoy 3D image and surround sound at the same time. With the launch of 3D Home Theater, Samsung became the first company in the industry to have the full line of 3D offerings, including 3D television, 3D Blu-ray play, 3D content, and 3D glasses.[64]
The company is trying offer the 3D content streaming service on its 3D televisions. Just like iTunes store, the Samsung 3D television aims to allow the user to connect to its own online store, Samsung Apps, and download applications on the user's hard-disk drive.
In 2007, the company introduced the Internet TV, enabling the viewer to receive information from the Internet while at the same time watching conventional television programming. Samsung later developed "Smart LED TV", (now renamed to "Samsung Smart TV"[65]) which additionally supports downloaded apps. In 2008, the company launched the Power Infolink service, followed in 2009 by a whole new Internet@TV. In 2010, it started marketing the 3D television while unveiling the upgraded Internet@TV 2010, which offers free (or for-fee) download of applications from its Samsung Apps store, in addition to existing services such as news, weather, stock market, YouTube videos, and movies.[66]
Samsung Apps offers for-fee premium services in a few countries including Korea and the United States. The services will be custom-tailored for each region. Samsung plans to offer family-oriented applications such as health care programs and digital picture frames as well as games.
SamyGO community created at 2009 for hacking Samsung B series television firmwares, and later supported A and C series televisions also, under GPLv2 license and deployed new applications like a tool increasing subtitle size and changing its color, enabling PVR functionality of television, enabling internal video player on low end models, supporting DTS codec on B Series televisions, work around for DLNA problems by playing movies from SAMBA and NFS shares support etc. Also placed web browser right into TV with mouse and keyboard support and many more applications... Samsung started to release restricted firmware updates starting from February 2010 for fixing security issues those used by SamyGO community and disabled firmware downgrade option from television menus, which believed to disable the SamyGO project. But hackers find workarounds for those new restricted firmwares.[67]
The company sold 235 million mobile handsets in the year 2009.[68] At the end of the third quarter of 2010, the company had surpassed the 70 million unit mark in shipped phones, giving it a global marketshare of 22 percent, trailing Nokia by 12 percent.[69]
Overall, the company sold 280 million mobile phones in 2010, corresponding to a market share of 20.2 percent.[70]
Following the success of its "Anycall" brand mobile phones in Korea, the company introduced numerous mobile-handset models including premium phones, full-touch screen phones, and environmentally friendly phones.
The company's flagship mobile-handset line is the Samsung Galaxy S II, which many consider a direct competitor of Apple's popular iPhone.[71] It was initially launched in Singapore, Malaysia and South Korea in June 2011,[72][73][74] followed by US variants called Vibrant and Captivate in July and Epic and Fascinate in August and September. It sold more than one million units within the first 45 days of in the US alone.[75]
The company's I9000 Galaxy S and S8500 Wave smartphones were the winners of the 2010 European EISA Awards in the smartphone and social media phone categories. The I9000 Galaxy S was recognized for its superior-quality screen and excellent connectivity while the S8500 Wave for its Bada operating system with unparalleled social networking and location-based services.[76]
The company's 2010 smartphone shares worldwide are rising rapidly. The share in the US doubled in the second quarter of the year from the previous quarter. In the second quarter the company shipped as many as three million smartphones, a 173-percent increase from the same period last year.[77]
While many other handset makers tend to focus on supporting one (or at most two) operating system, Samsung has kept supporting a wide range of operating systems in the market. Although the Galaxy S adopts Google Android as the primary operating system, it also supports other competing operating systems such as Symbian, Microsoft Windows Phone, Linux-based LiMo, and Samsung's proprietary Bada.[78]
The company set the sales goal of the 2010 year end at 20 million units.[79]
Partially owing to strong sales of the Samsung Galaxy range of smartphones, the company overtook Apple in worldwide smartphone sales during the third quarter 2011, with a total market share of 23.8 percent, compared to Apple's 14.6-percent share.[80]
Samsung has become the world's largest cellphone maker in 2012, with the sales of 45 million smart phones in the first quarter.[81]
In 2009, the year of worldwide recession due to the 2008 global credit crisis, the company's sales revenue rose 27 percent from the previous year, the biggest increase in the industry. In the home market, Samsung held the leading position thanks to strong sales of its flagship items, Zipel-brand side-by-side and kimchi refrigerators. In the North American, European, and Russian markets, it solidified its image as a premier appliance maker by selling so many refrigerators, washing machines, air-conditioners, as well as new steam microwave ovens and "robot" vacuum cleaners.
In a market clearly split into two extremes of upmarket and budget categories, the company employs a two-pronged strategy to emphasize its premium image for affluent consumers while marketing lower-end items with fewer bells and whistles for emerging economies consumers.
In 2009, the company introduced a host of new products including a premium mini-laptop computer N310 and slim-sized laptop X420. The N310 and the X420 are the third-generation laptops with all the advanced features as well as portability and connectivity. Thanks to these new market entrants, the company could sell as many as six million laptops for the year.
In the printer-business division, one of the next-generation strategic areas, the company launched mono-laser printer, multifunction printer, and enterprise-use high-speed digital multifunction printer models. The company was ranked second in the world in the area of letter-size (A4) laser printers. In other segments such as mono-laser printers, multifunction printers, and color laser printers, it was first or second place in the world. In the laser multifunction printer segment, it became number one for the first time in its history, all of which indicates that company is growing fast in the printer business despite under the condition of severe economic recession.
In 2010, the company introduced many new products boasting energy efficiency and eco-friendliness, including the premium laptop R580, netbook N210, the world's-smallest mono-laser printer ML-1660, and color laser multifunction printer CLX-3185.
In the area of wireless networking, the mobile telecom protocols such as Mobile WiMax and WiBro, the protocols developed by Samsung and adopted in 2007 as international standards, are in wide commercial use in many overseas markets. Since mobile telecom service providers in the United States, Japan, and Russia began deploying the standards, more and more providers (as many as 139 providers in 75 countries) are readying to take it up.
Digital cameras and camcorders are the areas Samsung cannot overlook. The company has introduced several models in these areas such as the WB550 (the premium camera), the ST550 (the dual-LCD-mounted camera), and the HMX-H106 (64GB SSD-mounted full HD camcorder). In 2009, the company took the third place in the compact camera segment. Since then, the company has focused more on high-priced items. In 2010, the company launched the NX10, the next-generation interchangeable lens camera, thereby commencing the race toward the new category of camera market.
In the area of storage media, Samsung in 2009 succeeded in grabbing more than ten percent of the world market share by introducing a new hard disk drive capable of storing 250Gb per 2.5-inch disk.[82] In 2010, the company started marketing the 320Gb-per-disk HDD, the largest in the industry. In addition, it was focusing more on selling external hard disk drives. Following financial losses, the hard disk division was sold to Seagate in 2011.
In the MP3 player segment, Samsung is doing quite well. It is launching a host of new products including the M1, the premium MP3 player model, and the world's-smallest DivX MP3 player R1.[83]
| Samsung's largest clients (Q1 2010)[95] |
| Rank/company |
Part description |
Buying (trillion KRW) |
Percent of total sales |
| 1 Sony |
DRAM, NAND flash, LCD panels, etc... |
1.28 |
3.7 |
| 2 Apple Inc. |
AP (mobile processor), DRAM, NAND flash, etc... |
0.9 |
2.6 |
| 3 Dell |
DRAM, flat-panels, lithium-ion batteries, etc... |
0.87 |
2.5 |
| 4 Hewlett-Packard |
DRAM, flat-panels, lithium-ion batteries, etc... |
0.76 |
2.2 |
| 5 Verizon Communications |
Handsets, etc... |
0.5 |
1.3 |
| 6 AT&T |
Handsets, etc... |
0.5 |
1.3 |
In the early 1990s, the firm began emphasizing the importance of design in its products. Located in the company's high-rise headquarters in Gangnam (south of Seoul) the corporate design center includes more than 900 full-time designers. In the beginning, there were only two designers in the whole company, whose number rose to 510 in 2005.
The company overhauls its design over a two-year cycle. For the first year, it scrutinizes all the design trends of the world, followed by product strategies. It then maps out new design plans during the second year.
Its effort to improve design paid off: since 2006, it has won as many as 210 awards from internationally prestigious design institutions. For example, it received the iF (International Forum) and IDEA design awards. Samsung was the winner in eight categories in the 2009 IDEA awards, the company that received the most awards.
There is compelling reason for the company's rise as a design powerhouse. Korea had for so long been considered a backwater for design excellence, especially compared to the Japanese counterparts famous for churning out eye-catching gadgets. The company established as many as seven design centers in the world's major cities including Milan and London, as well as in Seoul. The professional designers working in these centers constantly monitor latest design trends in their cities while scanning cultural and lifestyle changes.
In the 2010 iF Material Awards, the company won the Gold Award for five of its products including the external hard disk drive. The iF Material Awards are given by the International Forum Design GmbH of Hannover, one of the world's-most- prestigious design awards for design materials and process technologies. In 2010, the German company selected a total of 42 products in the areas of home appliance, furniture, and industrial design. Samsung won the awards in five categories including external hard disk, full-touch screen phone, "side-by-side" refrigerator, compact digital camera, and laser printer toner.[96]
All Samsung mobile phones and MP3 players introduced on the market after April 2010 are free from polyvinyl chloride (PVC) and brominated flame retardants (BFRs).[97]
The company is listed in Greenpeace's Guide to Greener Electronics, which rates electronics companies on policies and practices to reduce their impact on the climate, produce greener products, and make their operations more sustainable. In November 2011 Samsung was ranked 7th out of 15 leading electronics makers with a score of 4.1/10.[98] In the newly re-launched guide Samsung moved down two places (occupying 5th position in October 2010) but scored maximum points for providing verified data and its greenhouse gas emissions and also scored well for its Sustainable Operations with the guide praising its relatively good e-waste take-back programme and information. However, the company was criticized for not setting an ambitious target to increase its use of renewable energy and for belonging to a trade association which has commented against energy efficiency standards.[98]
In June 2004, Samsung was the first major electronics company to publicly commit to eliminate PVC and BFRs from new models of all its products. The company however failed to meet its deadlines to be PVC- and BFRs-free, and has published new phase out dates.[99] Greenpeace activists protested at the company's Benelux headquarters in March 2010 for what Greenpeace calls Samsung's broken promises.[100]
The company has been taking the lead in industry efforts to reduce greenhouse gas emissions, the company has been awarded as one of global top-ten companies in the Carbon Disclosure Leadership Index (CDLI). It was the only Asian company among top-ten companies. In addition, the company is listed in Dow Jones Sustainability Index (DJSI).[101]
The company's achievement ratio of products approaching the Global Ecolabel level ("Good Eco-Products" within the company) is 11 percentage points above the 2010 goal (80 percent). As of the first half of 2010, Samsung earned the Global Ecolabel for its 2,134 models, thereby becoming the world's number-one company in terms of the number of products meeting Global Ecolabel standards.[101]
The company is also accelerating its effort to recover and recycle electronic wastes.[102] The amount of wastes salvaged throughout 60 countries during 2009 was as much as 240,000 tons. The "Samsung Recycling Direct" program, the company's voluntary recycling program under way in the United States, was expanded to Canada.[103]
In 2008, the company was praised for its recycling effort by the U.S. advocacy group Electronics Take Back Coalition as the "best eco-friendly recycling program".[104]
The company's corporate name "Samsung" comes from the word "three stars" that shine brightly. The hanja character "sam" has the double meaning of three and strong while "sung" connotes "star" and "bright" (or "shining"). The corporate name has auspicious meaning in it, meaning that it foretells success.
Its logo design emphasizes flexibility and simplicity while conveying a dynamic and innovative image through the ellipse, the symbol of the universe and the world stage. The openings on both ends of the ellipse where the letters "S" and "G" are located are intended to illustrate the company's open-mindedness and the desire to communicate with the world. The English rendering is a visual expression of its core corporate vision, excellence in customer service through technology.
The basic color in the logo is blue, the color that the company has had used in its logos for years. The blue color symbolizes stability and reliability, which are precisely what the company wishes to accomplish with its customers. It also stands for social responsibility as a corporate citizen, a company official explained.[105]
Audio branding was produced by Musikvergnuegen and written by Walter Werzowa using the notes; Eb Ab Db Eb .[106][107]
In December 2010, Samsung switched its management system from the single CEO system of last year under Choi Gee-Sung, to a two-person management team with Choi Gee-Sung, CEO and Vice President, and Lee Jae-Yong, Chief Operating Operator and President. The team was credited as being younger both in age and in outlook, and in keeping with the new focus on youthfulness in spirit, some executives have even dyed their hair black.[108] Samsung also reorganized its overseas marketing bases in line with changes in the market, including a combined Britain/Continental Europe regional subsidiary, and a combined China/Taiwan regional subsidiary.
The company added a new digital imaging business division in 2010, and now consists of eight divisions, including the existing display, IT solutions, consumer electronics, wireless, networking, semiconductor, and LCD divisions.
It also reorganized its business organization to strengthen business synergies, by merging its Digital Air Solutions Team and Samsung Electronics Gwangju (consumer electronics and air conditioners, merged in 2010) under the consumer electronics business division. The Set Top Boxes business was merged with the Visual Display Business Division.
The company's December 2010 reorganization was as follows: Among the eight divisions, the network division and the digital imaging division experienced new appointments, while the remaining divisions were maintained in accordance with their strong results.
- Chief Executive Officer, Vice Chairman: Choi Gee-Sung
- Chief Financial Officer: President Yoon Ju-hwa
- Chief Operating Officer, President: Lee Jae-Yong
The following are the names of board of directors members:[109]
| Gee-Sung Choi |
Vice Chairman, President and Chief Executive Officer |
| Ju-Hwa Yoon |
Chief Financial Officer |
| Dong-Min Yoon |
Independent Director (Attorney at Law, Kim & Chang) |
| Chae-Woong Lee |
Independent Director (Professor of Economics, Sungkyunkwan University) |
| In-Ho Lee |
Independent Director (Advisor, Shinhan Bank) |
| Oh-Soo Park |
Independent Director (Professor of Business Administration, Seoul National University) |
From 1999 to 2002, the company conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to American computer makers. In 2005 Samsung agreed to plead guilty and to pay a $300 million fine, the second-largest criminal antitrust fine in US history.[14][15][16][17]
In May 2010, the EU antitrust watchdog levied a €145.73 million fine against Samsung for the same DRAM cartel.[110]
In December 2010, the European Commission fined six LCD panel producers, including Samsung, a total of €648.925 million for operating a cartel. The company received a full reduction of the potential fine for being the first firm to cooperate with the EU anti-trust authorities.[111]
In April 2011, Apple Inc. announced that they were suing Samsung over the design of its Galaxy range of mobile phones. The lawsuit was filed on 15 April 2011 and alleges that Samsung violated Apple's trademarks and patents and "slavishly" copied the iPhone and iPad.[112] Of the lawsuit, Apple said "This kind of blatant copying is wrong." Samsung issued a statement saying "Samsung's development of core technologies and strengthening our intellectual property portfolio are keys to our continued success" before announcing that they would contest the allegations.[112] A few days later, Samsung issued a counterclaim against Apple claiming patent infringement.[11] In August 2011, at The Regional Court of Düsseldorf, Apple were granted a preliminary injunction against the sale and marketing of the Samsung Galaxy Tab 10.1 across the whole of Europe excluding the Netherlands.[113] The ban has been temporarily lifted in the European Union, with the exclusion of Germany, whilst it is investigated whether or not the original injunction was appropriate.[114][115]
As part of the ongoing conflict between Samsung and Apple Inc., Samsung filed a claim with the Federal Court of Australia on 16 September 2011, accusing Apple of patent infringement by Apple's iPhone and iPad on seven patents.[112]
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Samsung Electronics
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Divisions and
subsidiaries |
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| Joint ventures |
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| Products and brands |
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| People |
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| Other |
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Links to related articles
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- SGH for GSM Handset
- SCH for CDMA Handset
- SPH for PDA Handset
- GT for Global Telecommunications
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Electronics and
information technology |
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| Financial services |
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Machinery, heavy industry
and chemicals |
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| Other |
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| Key terminology |
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| Flash manufacturers |
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| Controllers |
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| SSD manufacturers |
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| Interfaces |
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| Related organizations |
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Consulting and
outsourcing |
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| Imaging |
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| Information storage |
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| Mainframes |
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| Mobile devices |
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| Networking equipment |
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| OEMs |
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Personal computers
and servers |
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| Point of sale |
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| Semiconductors |
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| Software |
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Telecommunications
services |
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Methodology: FY2010/11 applicable revenues of over: group 1-11 (ex. semiconductor foundries) - US$3 billion; group 12 - US$10 billion; group 13 - US$2 billion; semiconductor foundries - US$0.5 billion
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US$ 142.4 billion (2011)
US$ 11.53 billion (2011)
