Fri, 27 Jan 2023 Today's Paper

Samsung Electronics to form auto team in search of growth driver

9 December 2015 06:30 pm - 0     - {{hitsCtrl.values.hits}}

A A A

REUTERS: Samsung Electronics Co Ltd said yesterday it will create a team to develop automotive-related businesses, as it searches for a new profit driver while struggles at its smartphone division deepen.
Samsung, in a statement, said the team will work outside of existing divisions to grow sales of car components, with initial focus on in-car entertainment, satellite navigation and autonomous driving technologies. The team will also work with other technology arms of the Samsung group.
Investors and analysts have increasingly called on Samsung to leverage its strength in fields such as chips and displays to tap demand from carmakers seeking increasingly sophisticated technologies for their vehicles.
Meanwhile, market estimates suggest profit from smartphones - Samsung’s former cashcow - is set fall in 2015 for the second consecutive year, putting pressure on the manufacturer to find new profit drivers.
U.S. patent filings data compiled by Thomson Reuters IP & Sciences showed increasing efforts by the world’s top smartphone maker and its affiliates to push into the rapidly growing market for automotive components, software and services that is worth around US $ 500 billion.
Samsung Electronics and affiliates such as battery producer Samsung SDI Co Ltd and electronic components maker Samsung Electro-Mechanics Co Ltd can become major forces in automotive technology by combining offerings into a single platform, investors and analysts said.
But they point out that it could take several years before Samsung Electronics sees meaningful earnings contribution from car-related sales. Product cycles in the car industry often last several years and require more rigorous safety standards than consumer electronics.
SK Securities analyst Kim Young-woo said while Samsung Electronics is moving in the right direction, Samsung Group as a whole needs to combine key component-making operations under a single umbrella in order to succeed.
“Now that Samsung Electronics rolled up its sleeves, there needs to be a move to consolidate all the different parts into one,” Kim said.

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Canada’s targeted sanctioning of Gota and Mahinda

History was made last week when two former executive presidents of Sri Lanka

SC judgement on Easter attack: Court rules negligence stood in the way of avoiding most heinous crime

“On the ill-fated day of 21st of April 2019, this island home was awoken ru

Lasantha was a Fearless Editor who Spoke Truth to Power

Friends,Family members, colleagues, schoolmates and admirers of Lasantha Wick

That bullet wasn’t intended for her

Iresha Shyamali was exhausted from a two-day pilgrimage in Anuradhapura.