Samsung aims to overtake Nokia within three years
30 December 2010 by Olav Hellesø-Knutsen
Samsung are aiming for the first place as a mobile phone manufacture within three years pushing Nokia away from the throne
Samsung must be doing something right at the moment. The Samsung Galaxy S smartphone is selling very well and the release of the twin model and first Android 2.3 device Nexus S adds even more awareness to the brand.
Samsung Electronics will ship around 270 million phones during 2010. 199.5 million units during the first three quarters and 71.4 million during the 3rd quarter alone. Compare this to Nokias sales figures of 110.4 million units in 3rd quarter and you will see that Samsung are gaining into the leader in terms of sold units. According to Nokia, the total mobile device volumes are expected to increase with more than 10% in 2010 compared to 2009. Samsung had an increase of sold units of 19% in third quarter while Nokia only increased sales with 2%.
Samsung are making CPUs, LCD displays, memory and other mobile phone components inhouse which is an advantage compared to other brands. It is reasonable to believe that Samsung Mobile will have first priority over Nokia if they for example both want to buy 10 million AMOLED displays from Samsung Semiconductor.
Smartphones and other premium products counts for more than half of Samsungs production targets while Nokia's converged mobile devices (smartphones and mobile computers) sales volume are 23% of total.
Samung have three manufacturing lines in China and one in Vietnam. Samsung expects it sales in the two emerging market to increase in 2011. They are expecting to increase sales volume with 20% up to 325 million units. In three years Samsung expects to have passed Nokia as the leader of mobile phone manufacture. That might happen, but Samsung does not reveal if they have calculated a significant drop in Nokia's volumes in the next three years.