The Samsung group's global electronics sales is expected to be $50 billion in 2004 with $2.7 billion coming from the Middle East region alone, according to Samsung Electronics President and CEO for Middle East and North Africa HQ Lee Byung-Woo.
As the competition in the mobile market heats-up the South Korean company is betting on its higher end models like its highest selling camera phones and slide-up multi-function models.
Lee is hopeful of increasing Samsung's market share in the medium and higher end segment with Saudi Arabia's move to lift the ban on the use of camera phones.
In a total market size of about 35 million mobile phones, Samsung has pocketed a market share of 20 per cent and by next year it plans to corner 22 per cent with a focus on camera phones and higher end models.
The company has line up a host a feature-rich models for launch early next year.
"Our strategy is to concentrate on the medium and high end products and remain number one in value terms," Lee said.
Saudi Arabia is expected to witness exponential growth in mobile phones sales, estimated to be $1 billion.
He said Samsung will introduce 3G phones by the middle of 2005 followed by PDA phones. The Etisalat-led consortium, Ettihad Etisalat, the second mobile service provider in Saudi Arabia, is expected to offer 3G service in the second quarter of 2005.
More than seven million subscribers are expected to be serviced by Ettihad Etisalat in the first five years of its operations.
Samsung's major markets are Saudi Arabia, Iran, Iraq and Pakistan. The UAE is used as a major re-export hub. These markets put together accounts for a demand of 55 million. Pakistan is the largest emerging market with 160 million population and a projected demand of three million mobiles a year.
"We are focusing on these markets to increase our sales and market share," Lee said.
Lee said by 2005 the subscriber base in the Middle East will grow to 60 million with 30 per cent annual growth in handset sales.
Samsung has emerged as the fastest growing brand with its brand worth put at $10.8 billion in 2003. With more mobile makers entering the market with new features, Samsung is focusing on the replacement market offering higher end products.
Early this year the company has put in place a strategy that includes global tie-ups, segmentation, technology upgradation, unique designs and fashion, to increase its market share.
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