Samsung 2006 Annual Report Download - page 37

27
Hubs for ubiquitous access, linking people heart to heart
In the era of ubiquitous connectivity, the mobile phone today can serve as the hub
for communicating with all the other digital devices and products on the network.
In addition to their capability to handle voice, text and video data, today’s mobile
phones can take digital photos, receive TV broadcasts, complete credit card
transactions and even monitor the user’s physical condition. Our premium brand
and distinctive designs make Samsung one of the global leaders in mobile phones.
We sold a record 118 million units in 2006 and our Mobile WiMAX technology is
establishing a new global standard for next-generation wireless communications.
Creative thinking for setting the next-generation standards
Mobile phones no longer are limited to making phone calls. In today’s world,
the purpose envisioned in the designer’s mind becomes more important. Our
collective creativity at Samsung Electronics is giving rise to innovative mobile phone
designs and new models that will create “blue oceans” of uncontested market space.
We will continue to develop cutting-edge technologies and services based on the
mobile phone to allow users access to a wealth of information, provided at affordable
prices anytime and anyplace.
The advent of a new generation in communications
Mobile phones are sophisticated devices that are not shared by multiple users, and
their replacement cycle is shorter than that of other IT products. For these reasons,
the size of the global mobile phone market continues to grow. Just 41 million mobile
phones were sold worldwide in 1995, and annual growth in the advanced markets
never exceeded 10%. However, growth in the emerging markets has continued to
rise, and global sales surpassed 950 million units in 2006.
The area of telecommunication systems, meanwhile, now has an upgrade
demand for next-generation networks such as wideband code division multiple
access (WCDMA) and high-speed downlink packet access (HSDPA). Next-
generation mobile communications services were launched in Korea in June 2006,
prompting the spread of wired/wireless integration, wireless internet service, and
broadcasting/communication convergence. Such new services are forecasted to
increase the demand for system upgrades.
Industry experts predict steadily rising demand for multimedia phones as
well as rapid growth of phones supporting WCDMA and HSDPA. Meanwhile,
standardization of 4G technology and other next-generation wired/wireless
convergence technologies is proceeding rapidly. The standards for integrating wired
and wireless communication technologies is expected to proceed steadily, with all-IP
network architecture (on an internet basis), 4G technology, next-generation networks
(NGN) encompassing the traditional wireline phone, mobile phone and internet.
Market leadership with a premium brand and standout products
We sold more than 103 million mobile phones in 2005. Annual sales broke a new
record of 118 million units in 2006, thanks to our stronger hold on the slim phone,
high-resolution camera phone, mobile TV phone and 3G multimedia phone
(WCDMA/HSDPA) segments. We launched our Ultra Edition series in Europe in
June 2006. The hugely popular ultra-slim phones were made available worldwide
within months, and a 3G version was released in August. Sales of this series have
surpassed 10 million units.
Operating Profit
(in hundreds of billions of KRW)
Net Sales (in trillions of KRW)
0605
24.8
06
20.2
20.9
05
19.8
We launched our Ultra
Edition series of ultra-slim
mobile phones worldwide
in the second half of 2006.
We also bolstered our hold
on the multimedia phone
market while achieving
a new record in overall
mobile phone sales.