Why Samsung Electronics Is Different Than Other Smartphone Vendors: Spent $11 Billion On Marketing And $10.6 Billion On R &D In 2012

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

iPhone 12 Plagued With Serious Problems: Should You Buy It, Still?

A serious problem with Apple iPhone 12, identified recently, is good enough to give a second thought...

Has Zuckerberg Finally Accepted That Facebook Spies On Users?

It seems like Facebook is headed towards more investigation and scrutiny as recently, Facebook has been alleged...

Today, there’s no need to explain that Samsung Electronics is dominating the mobile market. But have you ever endeavored why Samsung is leader in smartphone segment? There’s a simple answer to your inquisitiveness that the company is spending a huge amount on its smartphone marketing and promotional activities. Just two days before, the Korea Times revealed that Samsung Electronics spent a whopping $11 billion for marketing and promotional activities last year. However, the spending comprised its all products including smartphones, home appliances and more.

Last year, Samsung Electronics also invested $10.6 billion on its Research & Development campaigns. However, according to an industry analyst Horace Dediu from Asymco, the company might have spent approximately $12 billion on marketing and promotional activities in 2012. More importantly, 2012 was the first year in the history when Samsung snatched Nokia’s throne in terms of mobile handset shipments for any single year; the South Korean company topped in both smartphone and overall mobile handset shipments. This time, Samsung Electronics sells 500 mobile handsets every minute, and interestingly, it has planned to sell 510 million phones by the end of this year. Furthermore, the company has also planned to ship 390 million smartphones in 2013, including 100 million units of Samsung Galaxy S4.

Samsung Electronics Spent 38% More On Marketing Campaigns

It’s really interesting to know that Samsung Electronics spent 38% more on marketing campaigns last year, compared to the previous year. The company reported a staggering 6.8 times larger expenditure on the marketing and promotional campaigns  than what it spent back in 2005 on the same campaigns. In simple words, Samsung Electronics’ spending on promoting activities in the last year was more than the HTC’s entire revenue for the year.

Advertisements

In 2012, Samsung spent almost the same amount on R&D as it shelled out on advertising and promotions of its products. In addition, the company is currently spending a lot of money to build market leading products in several areas such as octa-core processors, smartphones and TV sets.

Samsung electronics

Samsung Electronics’ Stake In Sharp

Yesterday, Samsung Electronics purchased a 3% stake in Sharp for 10.4 billion yen, which is nearly equivalent to US$112 million. However, the Japanese company is already supplying all sorts of sizes of LCD panels for Samsung. Of course, the South Korean mobile handsets maker’s deal with Sharp will further strengthen the alliance between these two companies. Anyway, Sharp is currently struggling to stay afloat in the market, and of course, the latest deal will give the company a little breathing room.

Besides, it’s also said that Samsung and Sharp might collaborate with each other for AMOLED and Full-HD LCD panel manufacturing. It’s also true that Samsung is quite interested in IGZO (Indium Gallium Zinc Oxide) technologies. In other words, the deal with Sharp would help the South Korean company to implement IGZO tech in its LCD displays.  Of course, it wouldn’t be surprising to anyone that some of Samsung Electronics’ smartphones would have IGZO tech in 2013. At present, Sharp is actively working on its OLED projects, and it has already shown off its 3.4-inch IGZO based flexible prototype displays at CES event this year.

However, we have already discussed that Samsung Electronics is spending quite much on marketing and promotions, compare to its rivals such as Apple Inc., Dell, HTC, LG and more. It’s pretty much clear that Samsung’s focus on marketing has made it so successful, and this is the main reason why it’s dominating over other smartphone vendors.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once against proved they are the true arch-nemesis of...

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

Paytm Lawsuit Impact: TRAI Slaps Fine On Jio, Airtel, BSNL And Other Telcom Operators

The emergence of e-wallets brought along with itself a big uprise in notorious phishing scammers who prey on unsuspecting consumers by pretending...

MobiKwik Takes A Dig At Paytm After The Recent App Ban

The ongoing China-India border tension is resulting in more apps getting banned, and every time that happens the Indian startup unicorn Paytm...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This