SAMSUNG has already taken top spot in terms of consumer TV sales. And now the Korean electronics giant wants to expand its dominance by making sure businesses tune in to its display products as well.
The company has set a regional sales target of US$27 million for so-called large-format displays (LFDs) that are typically used by companies as digital signs or outdoor advertising platforms.
According to Darren Goh, Samsung Asia's general manager for IT business, the company's global LFD sales grew almost 90 per cent in 2007 to US$276.8 million.
'We are on track to hit our target of US$479 million this year,' he told BizIT.
By putting the spotlight on business-to-business (B2B) products such as LFDs, Samsung could help counter a possible slowdown on the consumer front as the bleak economic outlook threatens to curb retail spending in Singapore and elsewhere.
Statistics from market research firm IDC show Samsung took the lead in the local LCD (liquid crystal display) monitor market with a 28.6 per cent share in the second quarter.
Similarly, the company is leading the pack in terms of television sales, with a market share of 35 per cent, according to a report by analyst firm GfK.
However, fierce competition, coupled with the possible tightening of consumer purse strings, could put a dampener on Samsung's sizzling growth.
'This year the (TV) market is getting saturated. Competition is getting tougher. Growing our business within retail might be limiting,' says Ki-Hyeung Yoon, managing director of Samsung's electronics business division in Asia.
'However, anecdotal evidence and Samsung's own internal estimates show that market demand for specialised large format displays is growing rapidly. The Singapore market has woken up to the benefits of this digital media platform, which should help spur exponential growth.'
Samsung is the world's largest maker of LCD panels, giving it a natural edge for LFD production. To give this emerging business segment a further boost, the company will set up a dedicated 'LFD solution infrastructure' this year. This will be accompanied by more B2B marketing activities for LFD products.
Unlike computer monitors or flat-screen TVs, the LFD market is still considered to be in its infancy. Products belonging to this category are typically built to withstand the rigours of 24x7 operation and extended outdoor use.
Some models also incorporate computer processors to allow users to schedule content changes as well provide network-based control. LFDs can also be configured to display content in portrait mode as opposed to normal monitors which tend to be optimised for the landscape format.
Firing a strong signal of its market intent, Samsung recently launched a product barrage consisting of 20 new LFD products aimed at different businesses.
These include new models under its DX line, a family of DID (digital information display) panels designed to function as public displays. They are built for round-the-clock use and generate less heat than typical panels. In addition, they support Samsung's MagicInfo system for content scheduling and remote access.
The new products also include additions to Samsung's UX Series, a LFD monitor that has a bezel width of merely 11mm. Due to its thin frame, a number UX panels can be combined to form a video wall. It is equipped with Samsung ID, a solution for setting and configuring multiple display panels.
Samsung's LFD products are grouped under its IT business line, alongside other offerings such as printers and computer monitors. This segment accounts for about 10 per cent of the company's local sales. Mobile phones continue to be Samsung's star performer with a revenue contribution of 55 per cent. The remaining 35 per cent is made up of sales from audio-visual products and home appliances.
This story was first published in The Business Times on 1 September 2008.
