Kirk LaughlinSamsung Electronics is aiming to reach $10 billion in revenues in Latin American markets next year as it believes more business opportunities will emerge there, the company’s chief executive said Thursday.
The world’s biggest supplier of flat-screen displays has revised up this year’s investment target for flat screens to 10 trillion won capitalizing on next-generation flat-screen panels called organic light-emitting diodes (OLED).
“Samsung expects $8.5 billion in annual sales in the Central and South American markets by the end of this year and that will be increased to $10 billion next year,’’ said CEO Choi Gee-sung in an interview with The Korea Times.
Choi arrived at Gimpo International Airport from his 10-day trip in Mexico, Brazil and Argentina with the company’s TV chief Yoon Boo-keun and handset division head Shin Jong-kyun.
The company runs two manufacturing plants in each of Mexico and Brazil while it has three parts suppliers in Argentina.
It sees stalled growth in demand for digital devices in developed markets, pushing it to pay more attention to the high-potential and lucrative markets in Latin America and Africa, the vice chairman added.
“Samsung should grow further, which means that we should spend big in pushing for strong expansions in emerging markets when developed markets are showing signs of stagnating,’’ said the executive.
Choi recently said the world’s biggest technology firm is going to double its sales in Africa this year from 2010 and clarified its plan to invest more in the continent.
Samsung isn’t ruling out the possibility that the current quarter will remain safe in terms of profit despite volatility in the components businesses with the top executive saying, “Well, we don’t want to worry too much.’’
The company said it won’t cut investment in LCDs and Choi added the technology giant will invest some 10 trillion won o in displays including 4 trillion won in LCDs.
“We will hold a groundbreaking ceremony in China, which has been set for later this month, as planned. There won’t be a reduction in investments for LCDs,’’ said the top executive.
Samsung Electronics is planning to splurge its cash on AM-OLED displays, which are currently used in its Galaxy S smartphones, cameras and media players, because its AM-OLED joint venture has been suffering from a shortage of such advanced panels.
Samsung has been known to cut its investment for LCDs as the industry is still grappling with inventory and suffering from lower LCD prices due to sluggish demands for LCD-embedded products in developed markets.
“We can say that’s a rumor,’’ said another executive with the firm, asking not to be identified.
But the industry overall is seeing signs of improvement as the market is heading towards a more favorable period ahead of the back-to-school season in North America in the fall.
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