Samsung is holding an analyst day in Korea to reassure the skittish investors that the future is great for the worlds biggest electronics company. And they are providing some numbers to back it up.
Samsung has confirmed what we told you yesterday – they are going to ship 40-42 million tablets this year. According to their CEO, overall tablet shipments will reach 240 million this year, and 40 million will have Samsung name on them. As for the next year, Sammy expects the tablet market growth to come from the slates with 10” and larger displays in business and education markets, with big screen tabs reaching 100 million units. According to J.K. Shin, eventually the tablet and PC markets should merge into one. And, with tablets like upcoming dual-boot Android-Windows RT Note, Samsung is already taking steps to be the major player in this convergence.
As for the smartphones, they are and will remain the most important part of Samsung Electronics for the years to come. After all, the global smartphone penetration is only 21% , with a lot of room for growth. Samsung expects the smartphone market to grow at more than 10% CAGR at least through 2017. They are especially optimistic about the transition to LTE, with Samsung LTE handsets pegged at 30% CAGR for the next 3 to 4 years.
Queried about the troubles with the high-end mobile device portfolio, Samsung execs denied they are having any problems there. While most of the future growth in mobile devices will come from emerging markets and from cheaper models, they see the high-end market as “stable”, and said that the combined shipments of Galaxy S and Galaxy Note series will exceed 100 million units this year. This number includes both the old (Galaxy S III/Note II) and new (SGS4, Note 3) handsets, and is lower than what Samsung expected at the end of 2012.
But it’s still an amazing feat, and confirms what we’ve been telling you over the past few months. The growth of flagships like Galaxy Sx and Note may have slowed downed significantly, and this market has almost reached the saturation point. But it’s still a huge and very profitable business for Samsung, and should remain such for the next few years.
Furthermore, the Korean company has seen this high-end growth slowdown coming months ago, and is now the best positioned global smartphone OEM to compete in the next stage of smartphone revolution – the rapid growth of mid to low-tier quality smartphones in emerging markets.