Resilient South Korean digital device giant, Samsung Electronics this week gave an indication to double Africa’s share of its revenues in five years, saying the dream will come true when it expands outlets in the continent.
According to an official, Sung Yoon, the target in the next five years is to move the annual revenue contribution from its African markets from the current 10 to 20 percent.
Currently, Samsung accounts for at least, over half of the mobile handsets and televisions sold in African nations like Kenya.
Key strategy, according to Yoon, will be to set up shops and other retail channels in more African countries and cut product delivery times.
Business Hilights can authoritatively say that Samsung Electronics had in the last couple of years, faced stiff competition in Africa from cheaper device manufacturers, thus, undercutting even Samsung’s more basic smartphones market share.
Yoon told Reuters in Nairobi that “We think Africa is extremely important for the future,” stressing that the demand for Samsung products was being driven by growing African demand for bigger TV and mobile phone screens.
“Most customers were now buying 55-65 inch TVs, up from 32 inches about a decade ago, while mobile users were no longer content with three-inch mobile phone screens.
“An increase in connectivity across the continent, helped by higher investment in telecommunication infrastructure, would further boost demand for devices in future”, Yoon said.
Already more African consumers are turning to smartphones for more basic models, helped by faster Internet speeds, to use social media and banking applications.
Leading key rival to Samsung’s market domination drive in Africa include China’s Huawei Technologies and Tecno, owned by Hong Kong’s Transsion Holdings, iTel, Gionne, Asus and more new players in the market.
