The mobile telephone market and all that relates to new technology is highly popular with stock market investors at present. The big names in this sector which are listed on the major stock exchanges offer assets often appreciated by online traders. This is indeed the case with Samsung Group shares that we will look at closely here with detailed and practical information that will assist you in analysing the price and rates.
Samsung reported strong results for the full year 2021 and the first 3 quarters of 2022. It has an impressive value as a market capitalisation.
First of all, it is necessary to keep an eye on the group's innovations by monitoring in particular the investments made by the group in research and development with the aim of offering technological products and facing up to the competition.
It will also be necessary to monitor the diversification of the group's activities towards new products and services with major positions taken in new technologies and new markets.
The group's pricing strategy will also be closely monitored in view of the arrival on the market of numerous competing products of equivalent quality and sold at more affordable prices for the general public.
The strategic partnerships that the group may enter into with other companies to develop new innovations or collaborate on major projects will also need to be carefully monitored.
Samsung's business is very sensitive to global economic health and certain crises, such as the recent Covid pandemic, may cause it to temporarily lose profitability.
The group's competition with the major players in this sector will also have to be closely monitored, as will smaller players and local players who may take market share.
Finally, it will also be necessary to take an interest in the evolution of the group's results and its growth and strategic development plans as these may influence the positions taken by traders and shareholders.
Let's now discover the Samsung group with a detailed presentation of this company and its activities. This will allow you to better understand its challenges by understanding how the group makes its profits and in which segments and markets.
Samsung Electronics Co Ltd is a Korean-based company that specialises in the electronics sector. More specifically, the company's core business is the production and distribution of electronic products.
But the group is actually active in three different sectors, including
The Samsung Electronics group currently distributes its products both on the domestic Korean market and internationally. Specifically, it generates 32% of its turnover in the Americas, 19.4% in Europe, 15.9% in China, 15.9% in Asia and Africa and 15.6% in South Korea. Currently, the number of employees at Samsung is 109,490.
The Samsung Group naturally faces strong competition in all the segments in which it operates. We therefore suggest that you find out here who its main rivals are in these sectors:
This Chinese electronics and computer company also offers mobile phone and consumer electronics products. It is the third largest smartphone vendor after Samsung and Apple.
In the semiconductor segment, the American group Intel Corporation is of course worth watching as it is the second largest player in this market after Samsung in terms of turnover. It produces microprocessors, flash memories, motherboards and graphics processors, among other things. The company is listed on the Nasdaq under the symbol INTC and has been led since 2021 by the former CEO of WMWare.
This other company is currently one of the largest semiconductor foundries in the world and is therefore in direct competition with Samsung in this segment. The TSMC group produces, for example, graphics chips for NVidia or systems on a Snapdragon chip from Qualcomm and chips from Apple.
This company, formerly known as the LG Group or Lucky Goldstar, is a South Korean chaebol or industrial conglomerate or holding company, specialising in the field of electronics, including home automation, mobile phones, air conditioning, small household appliances and also in business solutions, including solar and security. It is also a family business that was created by the Koo family, which still holds stakes in 17 subsidiaries of the LG group, including 45.25% in LG Chemical and 35.89% in LG Capital Services.
Finally, and with regard to Samsung's competition in the household appliance sector, we should also take into account the American company Whirlpool, which specialises in the design, production and distribution of household appliances and which is currently number two in this segment after LG.
Thanks to various partnerships, Samsung has been able to maintain a good reputation in this business sector. Here they are in further detail.
In 2017, Samsung established a partnership with Apple for the creation of a curved screen for the next iPhone.
In 2017, Samsung also signed a deal with Tesla regarding the design of its mobile phone’s batteries.
In the same year, Samsung struck a deal with Google in the field of artificial intelligence.
Finally, the company also has an extended partnership with Microsoft in the field of professional mobility which was renewed in 2017 in view of new projects.
Concerning the factors favourable to a rise in this asset price we note the following in particular:
As you may have noted from reading the precedent arguments, there are numerous factors in favour of a long rising trend in the Samsung share price. However, the situation is not that simple as the group also has certain weak points and factors that could negatively impact the positive trend in its price. We now offer you the opportunity to learn about the two principal arguments in favour of a drop in the Samsung share price.
If we examine the Samsung Company’s turnover over the last few years we note that between 2009 and 2019 this ranged between 154.05 and 221.57 billion dollars. Between 2011 and 2013 this turnover grew by 41% before falling by 20% between 2013 and 2015. Then we can observe a stabilisation at around 220 billion dollars between 2017 and 2018 and for the last year’s published results, that for the 2019 financial year we note a turnover of 207 billion dollars.
At present, in January 2020, regarding the stock market share price of the Samsung Company the financial ratios of this asset are overall quite promising with a stock market share price of 47.83 dollars and a profit generation of 3,166 KRW per share in 2019, that represents 2.74 dollars per share. The profitability ratio of this share is therefore attractive as it represents 5.73% for this period.
The Samsung share price is fairly easy to follow as this company is renowned worldwide, the asset is therefore quoted on numerous websites specialised in the stock markets. You could of course also consult online innovative stock market charts on this asset directly available from your trading platform that can be customised according to your requirements.
