Business Description

Samsung Electronics Co., Ltd. is engaged in the manufacture and sale of electronic and computer peripherals. The company has three business divisions: Information Technology, Consumer Electronics & Mobile Communications. Information Technology & Mobile Communications offers handheld products, communication systems, digital cameras, computers, and communication systems. Consumer Electronics offers cable television, printers, air-conditioner, monitors, and refrigerators as well as washing machines, medical devices, and other electronic products. The Device Solutions division includes a large-scale integrated circuit, memory, and light-emitting diodes.

Key Financials

Revenue (US$ Mn):

• US$ 5,67,185 Mn was the annual revenue generated by Samsung Electronics Co., Ltd. in 2021
• Samsung Electronics Co., Ltd.’s annual revenue for 2020 was US$ 2,00,606 Mn, a 2.78% increase from 2019
• From 2018’s annual revenues, Samsung Electronics Co., Ltd. registered a -11.91% decrease in 2019, amounting to US$ 1,95,179 Mn
• Total revenue of US$ 2,21,568 Mn was generated in 2018 by Samsung Electronics Co., Ltd.

Operating Income (US$ Mn):

• Samsung Electronics Co., Ltd.’s operating income for 2021 was US$ 3,82,445 Mn, a 1154.27% increase from 2020
• The operating income generated by Samsung Electronics Co., Ltd. in 2020 was US$ 30,492 Mn
• At a -56.05% decrease from , Samsung Electronics Co., Ltd.’s operating income of US$ 23,525 Mn was indexed in 2019
• Samsung Electronics Co., Ltd. generated an operating income of US$ 53,523 Mn in 2018

Net Income (US$ Mn):

• US$ 2,95,611 Mn was the net income generated by Samsung Electronics Co., Ltd. in 2021
• Samsung Electronics Co., Ltd.’s net income for 2020 was US$ 22,372 Mn, a 21.48% increase from 2019
• From 2018’s net incomes, Samsung Electronics Co., Ltd. registered a -54.31% decrease in 2019, amounting to US$ 18,417 Mn
• A net income of US$ 40,306 Mn was generated in 2018 by Samsung Electronics Co., Ltd.

Operating Margin %:

• Samsung Electronics Co., Ltd.’s operating margin for 2021 was 67%, a 343.42% increase from 2020
• The operating margin generated by Samsung Electronics Co., Ltd. in 2020 was 15%
• At a -50% decrease from , Samsung Electronics Co., Ltd.’s operating margin of 12% was indexed in 2019
• Samsung Electronics Co., Ltd. generated an operating margin of 24% in 2018

Gross Margin %:

• 41% was the gross margin generated by Samsung Electronics Co., Ltd. in 2021
• Samsung Electronics Co., Ltd.’s gross margin for 2020 was 39%, a 7.76% increase from 2019
• From 2018’s gross margins, Samsung Electronics Co., Ltd. registered a -21.01% decrease in 2019, amounting to 36%
• A gross margin of 46% was generated in 2018 by Samsung Electronics Co., Ltd.

SWOT Analysis

Strengths

Presence across diverse geographies

Samsung has a diverse geographic presence. The company has 230 global operating hubs. These include 52 sales offices and seven R&D centers. There are also 38 R&D centers, 52 R&D offices, seven design offices, seven R&D centers, and 37 R&D centers. It also has 15 regional offices in Asia, Europe, the Middle East, Africa, the Americas, Europe, and the Middle East.

The company earned 32.1% of its revenue in the Americas during FY2019. 18.5% came from Europe, 18.1% from Asia, Africa, 18.5%, 18.5%, 18.5%, and 18.5% from China. Its extensive geographic reach reduces the company’s exposure to market risks. Samsung also benefits from economies of scale, which allows for cost reductions. This geographic diversity also allows for close customer relationships.

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