Samsung on Wednesday said that it plans on propelling the technology innovation in order to tackle the unfavourable business environment to foster new growth drive in 5G and artificial intelligence (AI). In order to overcome business challenges aimed at falling prices of memory chips and flattening global demand for new smartphones, Samsung has vowed to step up in terms of innovation.
Kim Ki-nam, vice chairman of Samsung Electronics, said at a meeting at the company headquarters that was attended by 1,000 investors saying, "The company plans to push for profound innovations across the divisions as the unfavourable business environment is expected to continue this year".
In order to get ahead in the fast-changing tech industry, Samsung plans on expanding its investments in the burgeoning tech segments in order to propel growth.
Kim said, "We will focus on new, promising businesses, such as AI and 5G, to bring meaningful changes and will actively respond to new business opportunities".
With the business plans, announcement during the shareholders meeting, the first since a 50:1 stock split in May which was aimed at making it easier for retail investors to purchase stakes in the firm, Kim said: "We will continue to release innovative products in our home appliance and IT and mobile communication divisions to expand our market-leading position."
Samsung, known as the world's largest handset and memory chip maker has posted $215.8 billion in sales and $52 billion in operating profits last year, posting a record high profits driven by the boom in memory chips.
Samsung bids to propel its 5G business as Huawei, the world's largest telecom equipment maker, faces growing pressure from the US over security protection issues.
According to the market researcher IHS Markit, Samsung merely has a 3 per cent share in the 5G equipment sector in comparison to Ericsson's 27 per cent and Huawei's 28 per cent share.
The Korean Tech giant plans on setting a goal of capturing a 20 per cent share in the 5G equipment market by 2022.
(With IANS inputs)