Sunday, May 11, 2008

Samsung Dominating LCD TV and Memory Chip Market of North America

In my earlier article, I have talked about the Samsung mobile phone and its aim to overtake Nokia by 2010 or 2011. Well, the South Korean company is also leading the global market of LCD television and memory cheap. A market research firm from U.S., DisplaySearch, has recently showed that Samsung Electronics Co. Ltd. (SEO:005930) has secured its top ranking from Sony in the North American LCD TV market in terms of sales unit in the first three months of the year. Samsung reportedly holds 30.6 percent of global market share of chips.

In the North American LCD TV business, Samsung could hold on its top ranking only because of the edge it has in its pricing. The company is investing aggressively in the market, which makes the life difficult for its competitors like Sony, Vizio etc.

Korea Times reported:

``While rivals suffered from huge losses and falling profits, we will not change the current strategy to implement aggressive investment plans and the faster migration into advanced chips,’’ a Samsung spokesperson said Friday. The company reaped 4 percent of the operating margin in the chip business in the quarter, which is better than the chaser Hynix Semiconductor’s 30 percent operating losses over the same period.

``We are engaged in a very tight race with Vizio and Sony in the North American LCD TV market, however, what’s impressive is that we still have price edges there, because price-cutting has made other competitors such as Philips and Sharp struggle in their TV business,’’ according to the official.

North American economy is now going through a rough patch at this moment and the producers and manufactures are trying their best to hold on their place in the market by reducing the prices. Sony has faced heavy losses and some other companies are struggling. So, given the situation, it is really a success story for Samsung that the company holds its rank both in LCD TV and memory chip market of North America. Now, let us see if Samsung can hold its market share in the coming months of the year.