EU 5G rollout ups Samsung growth

Photo: EPA

The South Korean giant Samsung eyes the EU drive for fast introduction of 5G networks as a major possibility to increase its output growth, Reuters reported. Samsung is aiming to capitalise of the robust network construction growth as its main rival Huawei vowed to focus on its domestic operations in China after the firm was badly hurt in US and some European countries as security issues weighed on Huawei's ongoing contracts.

Although Samsung is global No. 1 in memory chips and smartphones, in 5G network equipment it ranks fifth behind Huawei, Ericsson, Nokia and ZTE, with a 10-15% market share in the first quarter of 2021, according to market research firm Dell'Oro Group. But as Samsung sealed a $6.6 billion deal with US telecoms company Verizon in September, followed by a deal with Japan's NTT Docomo in March, "impressions have changed", Woojune Kim, executive vice president of Samsung's networks business said. Samsung is currently conducting 5G trials with European telecom companies such as Deutsche Telekom in the Czech Republic, Play Communications in Poland and another major European firm, Kim said. Besides Europe, Samsung is also looking to expand in markets such as India, Australia and Southeast Asia, he added. The network equipment business is small currently for Samsung, which had a revenue of $212.50 billion for 2020. It does not announce separate numbers for the business and most analysts don't have estimates for it.

Samsung said since the 5G network rollouts began in 2019 in various countries, it has seen the number of new clients for its 5G equipments and systems rise by 35% a year on average. In addition to 5G rollouts, U.S. pressure on its allies to exclude Huawei from 5G systems has provided opportunities for its competitors to expand market share.

Similar articles

  • Emirates sinks in $5.5 bn pandemic loss

    Emirates sinks in $5.5 bn pandemic loss

    The Dubai based carrier Emirates will receive another multi-billion dollars injection which may ease its way out of the pandemic downturn, Reuters reported. The Covid-19 related restrictions have deteriorated the business of the airline company. Emirates pocketed another $1.1 billion in state support funds from Dubai as demand for long-haul travel slumped due to the coronavirus threat. Emirates posted first full-year loss in over three decades.

    20
  • Hyundai, GM eye lucrative flying cars market

    Hyundai, GM eye lucrative flying cars market

    The flying cars will become shortly part of regular traffic with major producers pushing hard to overcome competition in research and development, Reuters reported. Hyundai and General Motors both unveiled advanced plans with the Hyundai project expected to be introduced in air-taxi service by 2025. GM admitted it could take until 2030 to introduce flying cars as air-taxis for commercial usage by 2030.

    24