1977 saw the launch of The Telecommunication Network of Samsung Electronics and in 1983 it started its mobile telecommunications business with the aim of becoming the overall company’s growth engine. In 1986 Samsung released its first car phone, the SC 100, which didn’t do particularly well due to its poor quality.
Despite the setback, the telecommunication business remained committed to developing mobile phones, and the head of Department at the time decided to purchase 10 Motorola mobile phones to use as a benchmark for future production.
Two years later, R&D Samsung developed its first mobile phone, the SH 100. It became Korea’s first indigenously designed mobile phone. Unfortunately, this particular model only managed to sell a few thousand units in all.
Samsung Decides It’s Time for Change
1993 saw the development team focus on enhancing connectivity due to the mountainous topography of Korea. The company developed a new method using gold to connect the point between the antenna and the communication circuits, and this resulted in reduced resistance allowing for more stable conductivity. We also worked on “wave searching” software that was specific to Korea’s mountainous terrain.
Things came to a head in 1993, which saw major restructuring of the management of the division, and it was decided then that the company will produce mobile phones on par with Motorola by 1994, or if it was unable to do this, it would cease production of mobile phones altogether.
This resulted in their unveiling of its latest model, the SH 700, which proved to be remarkable because it weighed less than all the previous models and its compact design and superior quality immediately caught the attention of competitors.
The Samsung Corp Structure
The Samsung mobile phones forms just one area of Samsung Electronics (under the Samsung Group), which has five in total and these include:
- Mobile Communications Division
- Telecommunication System Division
- Computer Division
- MP3 Business Solutions Center
- Telecommunication R&D Center
Success: Better Late Than Never
The Samsung Telecommunications business announced its arrival in 2007 by reporting a massive 40% growth and fast becoming the second largest mobile phone manufacturer the world has ever seen. It immediately clinched a 14% market share in the fourth quarter of 2007, and this in itself was a substantial increase from the fourth quarter in 2006, 11.3% in total.
Samsung announced in November 2011 that it has sold more than 300 million mobile phones, hot on the heels of Nokia which had sold 300.6 million over the first three quarters of 2011.
2012 saw another impressive announcement from Samsung which confirmed that it had become the biggest manufacturer of Google Android operated devices, clinching a massive 46% market share.
It Hasn’t Been All Plain Sailing for Samsung!
Fate took a turn for the worse on 19th of August 2016 when the company released its latest Samsung Galaxy model, the Note 7. The company was forced to make a voluntary recall in September of the same year, as well as offering a new exchange program resulting from various reports of that particular model bursting or exploding. In October 2016, in response to an ever-growing list of complaints, Samsung announced that it would permanently discontinue the Galaxy Note 7 model with immediate effect.
Despite the recent setbacks, Samsung Mobile continues to be a world-leading smart-phone manufacturer. With outlets and independent retailers like Samsung Mobile Pirce, the company’s success is almost guaranteed to continue for the foreseeable future at least.