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Samsung Electronics Aims to Achieve Over 30 Trillion Won in Operating Profits in 2017
Challenging to $27B Profits
Samsung Electronics Aims to Achieve Over 30 Trillion Won in Operating Profits in 2017
  • By Jung Suk-yee
  • December 20, 2016, 01:30
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Samsung Electronics is aiming to achieve the highest results ever with more than 30 trillion won (US$25.23 billion) of operating profits next year.
Samsung Electronics is aiming to achieve the highest results ever with more than 30 trillion won (US$25.23 billion) of operating profits next year.

 

Samsung Electronics Co. will hold a global strategy meeting by each business division at its offices in Suwon, Giheung and Hwaseong for three days from December 19 and is aiming to achieve the highest results ever with more than 30 trillion won (US$25.23 billion) of operating profits next year.

On the 19th, Samsung Electronics’ information technology and mobile communications (IM) division held the meeting led by President Shin Jong-kyun. Moreover, the consumer electronics (CE) division CEO Yoon Boo-keun will lead the division meeting on the 20th, while Vice Chairman Kwon Oh-hyun will host the meeting for the device solution (DS) division on the 21st.

An official familiar with Samsung Electronics said, “Samsung Electronics posted 36.8 trillion won (US$30.95 billion) in operating profits in 2013, which was an all-time high, but it has established a strategy to exceed the record next year. This is because the price of semiconductors and displays is rising and the dollar remains strong, which help increase exports.” 

Before its Galaxy Note 7 fiasco, Samsung Electronics was expected to greet the era of “annual sales of 200 trillion won (US$168.21 billion) and operating profits of 30 trillion won (US$25.23 billion) this year for the second time. However, the company made a loss of over 7 trillion won (US$5.89 billion) as it permanently halted production of the Galaxy Note 7. Accordingly, it became difficult to accomplish 30 trillion won (US$25.23 billion) of operating profits this year.

Each division meeting will discuss detailed market conditions and set up action plans for next year. During the meeting, the IM division stressed that it should investigate the cause of the fire of the Galaxy Note 7 and establish the quality management system. In addition, it discussed the strategic direction of the new Galaxy S8 smartphone series, which can determine whether its smartphone business will revive. The discussion also included that the company needs to pay attention to even minor parts as well as innovative strategies since the success of the Galaxy S8 is directly related to next year’s earnings.

During the CE business meeting, discussions will likely be centered on the road map to target the premium home appliance market, the strategy to operate Dacor, a leading American brand in the luxury home appliance category to be acquired, and the technologies combined with the next-generation market trend “Internet of Things (IoT).”

The DS division will likely discuss the medium and long-term road map in order to maintain this year’s good performance during the meeting. It will also talk about the conditions of the memory semiconductor market, such as DRAM and NAND flash, its product strategy to retain the leadership in the market.

Samsung Electronics holds its global strategy meeting twice a year in June and December. It is attended by roughly 400 key local executives and heads including those from overseas operations.