Samsung 2005 Annual Report Download - page 63

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61
2002. Furthermore, for the first time in the industry, sales
of LCD panels of 10˝ or larger size accumulated over 100
million units in 2005. The company’s focus on delivering
innovative breakthroughs to the global market resulted in the
development of the world’s first 82˝ TFT-LCD panel and 40˝
AM-OLED panel for TVs.
In 2006, the LCD-TV market is expected to grow to 36 million
units, compared with 20 million units in 2005. In response
to the rapidly growing market, our company will focus on
the commercialization of large size LCD-TV panels (40˝·46˝ ),
through production at our 7-1G and 7-2G lines.
Telecommunication Network Business Leads
the Market with Premium Brand and Differentiated
Products.
The rapidly growing mobile handset market began to
slow down in 2005 due to a drop in demand for handset
replacements in advanced markets such as North America
and Western Europe. However, Samsung Electronics posted
annual sales of mobile handsets of over 100 million units in
2005 for the first time largely thanks to various 3G mobile
handsets featuring W-CDMA and CDMA EV-DO as well as its
multimedia phones such as mega-pixel camera phone, MP3
player phone, and DMB phone. Samsung Electronics’ sales
in handsets jumped 100 times in the past decade: In fiscal
1996, the company sold 1.07 million units. This increase in
sales is quite noteworthy, especially considering the fact that
we mainly focus on the high-end market.
In 2006, the company will solidify its leadership in the high-end
market through continuously releasing innovative products
and diversifying models of mega pixel camera phone, slim
phone, and W-CDMA phone.
Digital Media Business Creates the Digital Culture.
In 2005, our Digital Media Business continued its solid growth
despite challenging business environment in the domestic
and overseas market. We aggressively expanded our sales in
overseas markets based on cost and product competitiveness.
Growth in the slim CRT TV, PDP TV, and LCD TV markets
helped us offset the negative effects stemming from the
company’s decision to suspend production of analog
products such as non-flat CRT TV. More notably, Samsung
Electronics had the highest market share in the global TV
market during the third quarter in terms of sales and number
of sets sold. Samsung Electronics plans to strengthen
competitiveness in the digital product market, and to fortify
its global leadership by improving product structure, gaining
consensus on product excellence in markets of advanced
countries, and expanding the list of countries where Samsung
Electronics is the No.1 in market share.
The 2006 market presents a mixed picture: the market for
Flat Panel TV (FPTV) such as LCD TV and PDP TV is expected
to grow rapidly while competition is expected to become
more fierce with competitors focusing on digital products.
In response, Samsung Electronics plans to develop highest
quality products and conduct aggressive marketing to secure
its position as the industry leader.
The Digital Appliance Business Reshapes Consumer
Lifestyle.
The Digital Appliance Business is leading the market by
introducing products with differentiated design and innovative
technology, meeting consumers’ needs. Most notably, it is
performing very well in the the premium market.
Especially, our side-by-side refrigerator had #1 market share
both in Korea and in 31 markets globally. Also, sales for
our drum washing machine with the world’s first silver nano
technology surged by 76% from the previous year in Europe
and Asian markets.
JD Power ranked Samsung Electronics’ refrigerators first in
its consumer satisfaction index and KMCA ranked Samsung
washing machines first in its consumer satisfaction index for
six years in a row, and Samsung refrigerators first for three
years in a row.
The Digital Appliance Business plans to enhance its
competitiveness in 2006 through expanding the list of its high-
value-added products featuring state-of-the-art technology
and innovative design, placing emphasis on home solution
business, and cultivating overseas markets aggressively.