Samsung Electronics from South Korea aims to increase the annual income contribution from its markets in the Africa by 2x to 20% of the global total of the company in the upcoming 5 years. This data was given by the head of its commerce for the region to the media this week. Sung Yoon claimed that the electronics behemoth, which adds up for more than 50% of the televisions and mobile handsets traded in African countries such as Kenya, might set up stores and other retail hubs in more nations of Africa and slash times for product delivery.
“We believe Africa is very significant for the upcoming time,” he claimed to the media in an interview after a news meeting in Nairobi. Requirement for products of Samsung was being boosted by increasing African requirement for bigger mobile phone screens and TV, he claimed further in his statement. Most users were now purchasing 55–65 inch televisions, up from 32 inches almost a decade back, while mobile consumers were no longer happy with mobile phone display of three inches.
An elevation in connectivity all over the region, assisted by higher spending in infrastructure for telecommunication, might additionally drive demand for gadgets in the coming period, Yoon claimed. Telecom officials claim that more African users are shifting to handsets for more fundamental models, assisted by quicker Internet speeds, to employ banking applications as well as social media.
Yoon claimed that Samsung encountered rivalry in Africa from reasonably priced devices, undercutting even more fundamental handsets of Samsung. “Those entry goods are still to some extent more costly than our low entry contestants so it is hard to lower the gap. We can’t give up the quality,” he claimed to the media. Samsung’s competitors in Africa comprise Tecno, controlled by Transsion Holdings of Hong Kong, and China’s Huawei Technologies.