Samsung beats the odds as shares close at an all-time high
SAMSUNG shares soared to an all-time high last week as the Korean electronic giant defeated the unstable ecosystem that is today’s global smartphone demand and competition.
The company’s stock closed at a record high of 1,640,000 won (US$1,460) a share, nearly 30 percent year-to-date, surpassing Apple’s 4 percent increase. This feat has been mainly fueled by the success of Samsung’s recent Galaxy mobile phones.
Samsung’s Galaxy S5 received a lukewarm response in 2014 as the company faced intense competition with Apple and Chinese brands including Xiaomi. However, the release of the S6 and S6 Edge in 2015 turned things around for its smartphone business.
This year, the S7’s strong sales pushed Samsung’s second-quarter profits to exceed analyst predictions. The company is now confident that it is in a stronger position to challenge its U.S. rival. It is also taking advantage of slower iPhone sales.
The Note 7 which was released earlier this month has already seen consumer interest exceeding that of the S7 and S7 edge.
Samsung has progressed well despite the smartphone market encountering its slowest growth since 2007.
Besides its key business in smartphones, Samsung is also a big player in components as the leader in supplying memory chips and displays for personal computers and smartphones, including Apple and its Chinese rivals. It is also investing in manufacturing organic light-emitting diode (OLED) displays, which is projected to become standard in the near future.
With its current market capitalization of 232 trillion won (210 billion dollars), industry experts and analysts are certainly keeping a close eye on Samsung’s next milestone.