To: DiViT who wrote (44384 ) 9/1/1999 9:30:00 PM From: John Rieman Respond to of 50808
Samsung plans 20% market share for DVD Players............nikkeibp.asiabiztech.com Samsung Electronics Says DVD Player is Strategic in 21st Century September 1, 1999 (SEOUL) -- Samsung Electronics Co., Ltd. said it will develop a digital video disc (DVD) player as one of its strategically important items for the 21st century. Samsung Electronics, the world's leading manufacturer of computer memory chips and flat-panel displays, recently added two more models to its DVD product mix for Korean consumers, while preparing to make more than 30 disc titles every month. Under its plan, Samsung Electronics will post US$250 million in profits this year by exporting 1 million DVD players, and represent a 20 percent share of the global market by next year. The company will also put an additional 20 billion won into research and development next year, while increasing production capacity by 50,000 units to 200,000 units a month by the year 2000. The plan will help Samsung Electronics to diversify its DVD players to 10 models and develop optic components and core chips on its own in order to cut down on manufacturing costs. The global DVD market, which is virtually monopolized by Japanese companies, including Sony Corp. and Matsushita Electric Industrial Co., Ltd., is expected to grow rapidly, dwindling the demand for video cassette recorders. According to market data, about 6 million DVD players will be used worldwide by year-end, and this number will grow to 10 million units in 2000 and to 15 million units in 2001. As for Korea, the market is still in its early stages as many people are unfamiliar with DVDs, and more importantly, there are few DVD titles available. Experts forecast that about 50,000 DVD players will be sold in Korea as late as 2000. Samsung's rush to DVD items is a move to defend itself against Japanese rivals as the Korean government lifted a ban on scores of manufacturing goods made in Japan. "We debuted two new DVD players, which are one of our most popular export items, to the domestic market. This will help us to energize the market, while also coping with the onset of Japanese firms," said Shin Man-yong, a director at Samsung Electronics. "The domestic market was slow in growth due mainly to the lack of DVD titles," said Kim Moon-ghul, another director at Samsung Electronics. "We will make a joint effort to distribute more titles with major DVD title developers like Bitwin Co., Inc., Columbia Tristar and others." (Maeil Business Newspaper, Korea)