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Samsung grows bigger, but can't mesmerize consumers

The company has traveled far from its roots as a seller of cheap appliances in the 1970s and 1980s when South Korean products were more likely to be panned than praised internationally.

Updated on: Oct 03, 2011 04:41 PM IST
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If you own a consumer electronics gadget, there's a good chance something from Samsung makes it tick.

The company has traveled far from its roots as a seller of cheap appliances in the 1970s and 1980s when South Korean products were more likely to be panned than praised internationally.

Over those decades it has grown to become the world's biggest manufacturer of memory chips and LCDs _ key components that let PCs, digital music players and smartphones store data and display it on flat, high-resolution screens. And they are inside the company's own finished consumer products such as its top selling TVs and No 2-ranked smartphones.

But Samsung still has a perception problem. It may be massive and its products known for high quality, but it has yet to mesmerize consumers.

Sue Chung is someone the company should be winning over. Young, Korean and studying for grad school, she uses Apple's iPhone for reasons including ease of use and a positive feeling about its maker.

HT Image
HT Image

``The image is very important,'' she said, sitting in a Seoul coffee shop. ``Apple's image is very free and more open.''

Within South Korea a searingly ambitious nation that obsesses over its international standings in anything measurable pride in Samsung's achievements is leavened by comparisons with Apple Inc. and its quarter century of game-changing products such as the Macintosh computer and iPhone.

If Samsung is to live up to the vaulting ambitions of its homeland and its top executives, many feel it must move beyond being a highly efficient imitator to creating products so original and seductive in function and design they become icons of consumer culture. Being big alone no longer cuts it.

Illustrating Samsung's heft, its net profit last year was more than five times the combined earnings of Japanese rivals Panasonic Corp., Sharp Corp., Toshiba Corp., Hitachi Ltd. and loss-making Sony Corp. Total sales in 2010 came to a record 154.6 trillion won ($136.6 billion), making Samsung the world's biggest technology company by sales.

 
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