Samsung Research and Development Strategy
In the past, CDMA technology and a relatively closed Korean market enabled Samsung to accumulate R&D and production capabilities in a stable environment. In 2005, despite the lack of value-line product lines, Samsung still achieved global mobile phone sales of approximately 103 million units, an 18.9% increase in comparison with 2004. Targeting the mid-range and high-end segments, Samsung's strategy of small-volume production of numerous models has created high profit margins, and built up a strong brand. Effective integration of the whole conglomerate's R&D resources has also helped Samsung to strengthen its mobile phone R&D capability. This report will examine the development of Samsung's mobile phone business, focusing on its R&D model.
List of Topics
Samsung's mobile phone business, including organizational structure, and revenue performance in 2004, 2005; Samsung's mobile phone shipment performance worldwide and in regional markets, and production strategies and locations; R&D operations in Korea and worldwide and achievements of Samsung's R&D efforts; partnerships with other companies.
List of Figures
Figure 1 Vertical Integration of Samsung's Key Handset Component Supply Chain
Figure 2 Revenue of Samsung Electronics' Five Main Divisions, 1Q 2004 - 4Q 2005
Figure 3 Samsung's Mobile Phone Shipment Volume, 1Q 2004 - 4Q 2005
Figure 4 Samsung's Mobile Phone Shipment Volume by Region, 1Q 2004 - 4Q 2005
Figure 5 Samsung's Mobile Phone Shipment Share by System Technology, 1Q 2004 - 4Q 2005
Figure 6 R&D Personnel's Share of Samsung Electronics' Total Workforce, 1997 - 2005
Figure 7 Samsung Electronics' R&D Organization
Figure 8 The Division of Labor in Samsung's R&D Operations
Figure 9 Samsung Mobile Phone Unit's R&D Spending and its Share of Revenue, 2003 - 2005
List of Tables
Table 1 Capacity and Products of Samsung Electronics' Mobile Phone Plants
Table 2 Samsung's Global Network of Mobile Phone R&D Facilities
Table 3 Samsung Electronics' Global Network of Design Center
Table 4 Samsung's Strategic Collaborations in Communications
Table 5 Mobile Phone Types First Launched by Samsung



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