Samsung planning intense penetration of tablet, smartphone in Africa

Posted on April 10, 2014 11:41 pm

A source close to Samsung Africa strategists has disclosed to me of their mega plans to cash in more on the tablet and smartphone markets in Africa. Its parent company Samsung Electronics in South Korea has set this as a goal for its operations in Africa, which will be announced anytime soon. It aims to take part in every segment, from ultra- high definition Tv sets to ultra mobile devices including tablets, phones and wearables. Samsung want tablets and smartphones to contribute a double-digit percentage of its revenue in Africa and that is more likely to happens. Meanwhile it will also maintain its leadership in the electronics market. The Korean firm plan is to create a specialty retail channel for new products for tablets and smartphones. The company has a significant marketing budget for this new direction. Am one of those who expects the tablet and smartphone segments together to contribute to its total revenue by the end of this year.  In East and Southern African countries market, Samsung aims to hold more than 40 per cent of the tablet market.

The smartphone market is still Samsung’s main source of revenue, even though its growth is slowing due to stiff competition from its competitors. Smartphones will contribute about a quarter to the company’s Africa revenue this year. About 3 million smartphone are expected to be sold in East African region this year, and the average price is around US$300, so the company’s revenue from this source market will be around $900 million this year if projected growth targets comes to fruition. Samsung aims to gain revenue from 5 million tablets and in terms of volume, tablets and smartphones will account for around 30 per cent of total sales this year in Africa, but in terms of value, they will contribute around 13 per cent, since the household goods market has higher average sales in the continent. To achieve the marketing goal, Samsung needs to increase the number of channels to cover the new market territory. Currently, it has around 50 per cent of information-technology channels in Africa, but has weaker telecom channels that have been exploited by Huawei and others. Samsung need to create a telecom channel with the aim to gain all chain stores Africa has one of Samsung’s largest marketing budget and the company has always expressed readiness and confidence to enter these African markets, especially tablets and smartphones and now their urgent mission seems is to build share of the tablet and smartphone markets.

Contador Harrison