Samsung 2006 Annual Report Download - page 10

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Strengthening core competitiveness for the future
We continue to hire and cultivate topnotch R&D engineers to be ready for the future, and 26% of our
entire workforce is engaged in research and development activities. Our emphasis on research allowed
us to register more than 2,400 new patents in the US during 2006, rising three notches from the fifth most
US patents in 2005 to second place in 2006.
We also demonstrated our world-class status in the IT sector during 2006. Our next-generation
technology was applied to develop the world’s first 1GB DRAM using 50-nanometer production
processes and 32Gb NAND flash memory with 40nm processing. In addition, we commercialized Mobile
WiMAX, a next-generation wireless communication system.
2007 Business Environment and Management Strategies
The economic outlook for 2007 is not very encouraging. Many are concerned about a global market
slowdown because the US economy appears sluggish and local wars around the globe continue.
Meanwhile, the Korean market situation is likely to be just as difficult in 2007 as it was in 2006.
Samsung took advantage of the transition from analog technology to digital ahead of its rivals to rise in
the ranks as a global player. However, many challenges lie ahead. For example, growth has slowed in
recent years; revenue has been mainly concentrated in certain business areas, and performance can be
adversely affected by external circumstances. Amid such conditions, competition over market leadership
has intensified and market latecomers in China and elsewhere are now in hot pursuit of the leaders.
Ever alert for a possible challenge, we are focused on strengthening the financial soundness of Samsung
Electronics. We are also going all out to secure creative leadership in technologies, markets, and
products in order to maintain our growth momentum.
All our people are working in solidarity to make the impossible possible and to turn crisis into
opportunity. We are using our creative ideas and innovations to further strengthen our foundation as a
world-leading company.
Creating innovative products to lead the market
Creating innovative products that can lead the market starts by understanding markets and customer
needs ahead of the competition and by shifting paradigms of conception. Samsung Electronics has led
the development of new markets by coming up with unique products and technologies such as
the Bordeaux TV line, next-generation NAND flash devices and Mobile WiMAX. We will continue to devise
product innovations and develop market-leading, premium concepts that cannot be imitated. We are
bolstering our abilities to create new markets and to differentiate ourselves fundamentally so that we can
pioneer new businesses that lead future growth. Finally, we are generating added value through synergy
among our organizational units.
We are strengthening our abilities to “sense” the right technologies for the future and to secure new
technologies systematically. We are also upgrading our expertise in developing designs, user interfaces
and solutions to project a unique Samsung identity, bolster patent competitiveness and establish new
technology standards. In this way we will endeavor to fundamentally stand out from the competition.
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