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| Kim Ki-nam, vice chairman of Samsung Electronics who heads the Device Solutions Division, delivers a speech during a general meeting of stockholders at the company's Seocho office in southern Seoul, Wednesday. / Yonhap |
By Jun Ji-hye
Samsung Electronics painted a gloomy outlook for its business in 2019, Wednesday, saying its three business units ― device "solutions" (DS), consumer electronics (CE) and IT & mobile communications (IM) ― will grapple with intensifying competition, falling demand and other unfavorable conditions.
Kim Ki-nam, Kim Hyun-suk and Koh Dong-jin, the respective heads of the DS, CE, and IM divisions, made the remarks during a general meeting of stockholders at the tech company's Seocho office in southern Seoul.
They said the firm will push for innovation in all business areas to enhance competitiveness and overcome difficult management conditions.
"The DS Division is expected to have a difficult year as the smartphone market, which has driven demand for semiconductors and parts, is slowing down, and data centers have reduced their investment," said Kim Ki-nam, vice chairman of Samsung Electronics who heads the DS Division.
But he noted that demand for semiconductors for cars and other new growth engine industries, including fifth-generation (5G) network services, is consistently increasing with the emergence of the Fourth Industrial Revolution.
"We believe there should be opportunities despite a crisis," Kim said, vowing to focus efforts on developing next-generation products such as sixth-generation V-NAND.
Kim Hyun-suk, president and head of the CE Division, said competition is expected to heat up in the consumer electronics market amid the extended application of big data, cloud computing, artificial intelligence (AI) and internet of things (IoT).
He said the firm will expand the lineup of large-sized 8K quantum-dot light-emitting diode (QLED) televisions to solidify its leadership in the premium TV market.
"We will have the full lineup of 8K TVs ranging from 65 to 98 inches," Kim said. "We will actively promote AI-powered quantum processors that automatically upgrade full-high definition or ultra-high definition video to 8K."
Koh Dong-jin, president and head of the IM Division, said the growth of the smartphone market this year is expected to be stagnant due to the slow global economy.
He said more difficulties will be caused by intensifying competition between rival companies and increased materials costs.
He vowed to enhance the competitive edge of the firm's products and secure price competitiveness to increase sales.
"Samsung Electronics will also enhance its leadership in the premium smartphone market to create growth momentum," he said.
Koh added the Galaxy S10, which was recently unveiled, has been well-received by the market, saying the firm will also create a new segment by launching a 5G-enabled foldable smartphone.
The company stressed that it posted record high profits last year despite difficult management conditions in and outside the country, saying its sales and operating profit stood at 244 trillion won ($216 billion) and 59 trillion won, respectively.
