Samsung: Our portfolio protects against emerging market failures

Summary:Samsung says it is not worried about the potential pitfalls of exploring emerging markets -- and other companies are following suit.

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Samsung says that rapid changes in emerging markets will not impact on the firm's home appliances business.

According to Reuters, a senior executive said on Tuesday that despite volatility and often economic uncertainty, emerging markets are still worth pursuing.

Speaking to reporters, Eom Young-hoon, executive vice president of sales and marketing said:

"Plunges in emerging market currencies were an issue of concern until recently but they have started stabilizing ... and our global business portfolio is helping us offset weakness in such markets."

Last year , the South Korean firm instigated "crisis management" to cope with highly-fluctuating currency in the Eurozone. While the euro began to weaken against the dollar, Samsung ran on a scenario-basis to offset operational losses caused by currency volatility.

While Eurozone markets remain sluggish, a number of firms have began developing products -- including home-based television sets, screens and appliances, computers, and mobile devices such as smartphones and tablets -- with a lower price point and targeting emerging markets. For example, Chinese PC maker Lenovo's CEO Yang Yuanqing said in January that after entering the Chinese mobile device market in 2013, the firm is finally turning a profit, and has expanded sales to Russia, India, Indonesia, Vietnam and Philippines.

Google is also reportedly working on a fund to fuel wireless infrastructures primarily in rural areas and developing nations to get more people online -- and of course, purchasing devices to use the system.

In addition, Acer's budget tablets are readied for emerging markets, and while Apple's recently released iPhone 5c was believed to be aimed at emerging Asia-Pacific markets, Chinese and Indian consumers were left "disappointed" at the price tag -- especially in comparison to rival offerings offered at lower price points by firms including Samsung, HTC, and LG.

According to ABI Research, China, Brazil and India will be among the top four smartphone markets worldwide by 2018. ABI says the top five countries will account for 51 percent of global smartphone shipments, and BRIC countries will be 33 percent of the market.

Topics: Samsung

About

Charlie Osborne, a medical anthropologist who studied at the University of Kent, UK, is a journalist, freelance photographer and former teacher. She has spent years travelling and working across Europe and the Middle East as a teacher, and has been involved in the running of businesses ranging from media and events to B2B sales. Charli... Full Bio

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