Samsung in a digital gold rush

LAS VEGAS, NEVADA - Samsung Electronics Co. plans to launch a new project aimed at strengthening its position in the global market for digital media products. The world's largest maker of memory chips and a major producer of consumer electronics products will begin the "Wow Project" soon, Chin Dae-je, president for Samsung's digital media division, said during a press conference here. He was attending the 2003 International CES, the largest trade fair of consumer technology products. "We plan to become a leading player in the digital appliances market by introducing at least 20 Wow products with new technology or designs that would surprise our rivals," he told reporters. The Wow products will include combo digital versatile disk players, 40-inch liquid crystal display television sets and small digital camcorders. Samsung holds 7.4 percent of the global market for combo DVD players, which also play magnetic videocassette tapes. The company will also add to its product lineups a 54-inch liquid crystal display television set and digital camcorders with 4.1 million picture elements, or pixels "Through this project, we plan to increase our sales of digital media products to 30 trillion won ($25.4 billion) in 2005 from 18 trillion won last year," Mr. Chin said. "Currently, Samsung is the world's No. 1 maker of color monitors, color television sets and videocassette recorder, and among the top players in the digital camcorder and laser printer sectors. Samsung is performing well in most sectors of digital appliances except personal computers." Mr, Chin said that Samsung will market new PC models in the second half of this year, an effort to increase its computer exports to 1 million units in 2003 from 600,000 last year. "In the U.S. market in 2000, the price index for Samsung products stood at 60," against the market average of 100. "Last year, the index jumped to 102, meaning Samsung is in the group of high-priced goods." Mr. Chin forecast that 2003 would mark a year when the high-speed Internet business grows and digital broadcasting goes into full swing. "Samsung is trying hard to develop related products," he said. He said home networking products, which control various types of linked appliances, will be Samsung's next market challenge. by Ha Ji-yoon