Samsung's Network Business Buoyed by 5G
11 December, 2019
Samsung's network business, which makes communications equipment, is expected to post record earnings this year thanks to the next-generation 5G mobility services.
Over the past year, Samsung doubled its share of the global market for communications equipment. It started supplying 5G equipment to SKT, KT and LG Uplus last year.
According to market researcher IHS Markit on Tuesday, Samsung ranked fifth last year in the global communications equipment market with five percent, behind ZTE (12 percent). But by the end of the third quarter this year it had risen to fourth place with 11 percent after Huawei (34 percent), Ericsson (24 percent) and Nokia (19 percent).
Samsung's network business posted sales of W4.02 trillion in the first three quarters, or the equivalent of its entire earnings last year (US$1=W1,190). If the boom continues, it is expected to post a record W5.5 trillion this year.
The strong performance was due to Samsung's meticulous preparations.
A latecomer to the 4G equipment market, the company failed to achieve significant results, but it saw the error of its ways and prepared better for 5G and aggressively chased international orders.
Last year, Samsung signed 5G equipment deals with Sprint and AT&T in the U.S. and launched 5G fixed wireless access services with Verizon. This October, Samsung was picked as the 5G business partner of Japanese telecom KDDI.
As of the end of the third, Samsung’s global 5G equipment market share rise to 23 percent or second place, overtaking Ericsson (20 percent) and Nokia (14 percent). Huawei still ranks first with a market share of 30 percent despite U.S. attempts to force a global boycott.
The U.S. accuses Huawei of putting backdoors in its equipment that will allow the Chinese government to spy on other countries.
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