South Korean electronics giant, Samsung Electronics Co. Ltd plans to double the annual revenue contribution from its African markets to 20 percent of the company’s total revenue globally in the next five years.
Head of Business on the continent, Samsung Electronics, Mr. Sung Yoon, said Samsung accounts for over half of the mobile handsets and televisions sold in African nations.
Yoon said: “We think Africa is extremely important for the future. Demand for Samsung products was being driven by growing African demand for bigger TV and mobile phone screens.”
He stressed that Samsung has witnessed growth due to an increase in connectivity across the African continent, noting that it has brought about higher investment in telecommunication infrastructure.
According to him, the growth would further boost demand for its devices in the future, adding that more African consumers are turning to smartphones for more basic models helped by faster Internet speeds.
Yoon said Samsung faced competition in Africa from cheaper devices, undercutting even Samsung’s more basic smartphones.
“Those entry products are still slightly more expensive than our low entry competitors; so it’s difficult to reduce the gap … We cannot sacrifice the quality,” he said.
Samsung’s rivals in Africa include China’s Huawei Technologies [HWT.UL] and Tecno, owned by Hong Kong’s Transsion Holdings.