Samsung’s Future
Samsung Electronics once again indicated its intention to foster the medical and healthcare industry as the future growth engine, following smartphones.
“Samsung is currently heavily investing in research and development to find new possibilities in the medical sector,” remarked Lee Jae-yong, vice chairman of Samsung Electronics, during the “Asian economic outlook in 2014: A dialogue with BRA Board of Directors” session of the “Boao Forum for Asia Annual Conference 2014” in China on April 9.
The Vice Chairman went on to say, “Many countries in the world are facing the problem of a rapidly aging population, and medical spending is also rising drastically,” adding, “It imposes a big burden for each economy. So, if a company can find a solution to lower medical costs, it will create tremendous opportunities for the firm.”
In particular, he explained, “Samsung is working to set up joint ventures with hospitals, insurance companies, and pharmaceutical companies related to the medical and healthcare business,” adding, “We are pushing forward business cooperation in various fields.”
Lee also predicted that the integration of information and mobile technologies into the healthcare sector, in which Samsung Electronics has a competitive advantage, would provide many business opportunities.
He pointed out, “Smartphones are greatly helping many industries flourish, including the service sector,” adding, “Samsung is focusing on the development of application technologies and new features to respond to this change.”
Meanwhile, the Korean tech giant is actively seeking to expand and invest in related businesses, as shown by its Health & Medical Equipment (HME) division upgraded to the healthcare division, after the medical and healthcare industry was named one of the five future growth engines.
Samsung Electronics is accelerating the launch of a new offensive to dominate the market by showcasing its latest medical devices including digital X-rays, ultrasonic scanning apparatuses, in vitro diagnostic medical devices, and portable CT scanners in partnership with its subsidiaries such as Samsung Medison and NeuroLogica.
The tech company also officially introduced the Galaxy S5 worldwide on April 11, which features a heart rate monitor and the S Health fitness tracker software, along with the Galaxy Gear 2 and the Gear Fit.
Samsung is planning to invest 1.2 trillion won (US$1.15 billion) in the HME business, turn over 10 trillion won (US$9.6 billion), and employ up to 9,500 people by 2020.