Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Joe Stinziano, executive vice-president for Samsung Electronics America, debuts the company's new 85" Ultra High Definition (HD) television at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Joe Stinziano, executive vice-president for Samsung Electronics America, debuts the company's new 85" Ultra High Definition (HD) television at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Joe Stinziano, executive vice-president for Samsung Electronics America, demonstrates a new television that shows two programs at once at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. Two people can watch two programs on the same TV using special glasses (seen at right). REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Joe Stinziano, executive vice-president for Samsung Electronics America, demonstrates a new television that shows two programs at once at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. Two people can watch two programs on the same TV using special glasses (seen at right). REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Michael Abary, senior vice-president for Samsung Electronics America, shows off a Series 7 Chronos laptop at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Michael Abary, senior vice-president for Samsung Electronics America, shows off a Series 7 Chronos laptop at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Michael Abary, senior vice-president for Samsung Electronics America, shows off the NX300 camera, describing it as the world's first single-lens 3D system at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Michael Abary, senior vice-president for Samsung Electronics America, shows off the NX300 camera, describing it as the world's first single-lens 3D system at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Joe Stinziano, executive vice-president for Samsung Electronics America, debuts the company's new 85" Ultra High Definition (HD) television at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Joe Stinziano, executive vice-president for Samsung Electronics America, debuts the company's new 85" Ultra High Definition (HD) television at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
The company logo is displayed at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY LOGO)
The company logo is displayed at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY LOGO)
People walk past an advertisement board featuring Samsung Electronics in Seoul January 7, 2013. Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products. Picture taken January 7, 2013.  REUTERS/Kim Hong-Ji (SOUTH KOREA - Tags: BUSINESS)
People walk past an advertisement board featuring Samsung Electronics in Seoul January 7, 2013. Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products. Picture taken January 7, 2013. REUTERS/Kim Hong-Ji (SOUTH KOREA - Tags: BUSINESS)
People use the Galaxy Note II after a news conference announcing Samsung's update to its phone-tablet hybrid in New York in this October 24, 2012 file photo. Samsung Electronics, the world leader in mobiles and memory chips, likely earned a quarterly profit of $8.1 billion, as it sold close to 500 handsets every minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products.  REUTERS/Shannon Stapleton/Files  (UNITED STATES - Tags: BUSINESS TELECOMS)
People use the Galaxy Note II after a news conference announcing Samsung's update to its phone-tablet hybrid in New York in this October 24, 2012 file photo. Samsung Electronics, the world leader in mobiles and memory chips, likely earned a quarterly profit of $8.1 billion, as it sold close to 500 handsets every minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products. REUTERS/Shannon Stapleton/Files (UNITED STATES - Tags: BUSINESS TELECOMS)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
Tim Baxter, president for Samsung Electronics America, shows off the LED F8000, their newest flagship Smart TV at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
LAS VEGAS | Tue Jan 8, 2013 - South Korea's Samsung Electronics Co said it is on course to achieve its goal of becoming the world's top home appliances maker by 2015, with sales growing an estimated 50 percent by then.

Samsung Electronics, which makes more chips, flat-screens, handsets and TVs than any of its competitors - including the world's best-selling smartphone - is aiming to boost its home appliance segment and narrow the gap with companies including Whirlpool Corp and Electrolux AB.

"I'm confident of Samsung becoming the world's top appliances maker by 2015 with $18 billion sales, as we set up a very well structured framework for key products and moving step by step to the goal, first starting with fridges," Yoon Boo-keun, president of the division, told Reuters in an interview at the Consumer Electronics Show in Las Vegas on Monday.

Analysts estimate Samsung Electronics earned around 13 trillion won ($12 billion) last year from home appliances, part of the firm's consumer electronics arm.

Samsung Electronics would ditch unprofitable product lines and boost research into consumer tastes across different markets, Yoon said.

"It's a business that can ensure steady cash flow with little earnings fluctuation, once you have a proper system in place," Yoon said. "It's not dull at all and has great potential to become Samsung's next earnings driver."

MR TV AIMS FOR GROWTH

Yoon, who was head of Samsung's TV business until 2011, was put in charge of the thin-margin home appliance division a year ago with a mission to match the TV outfit's success.

Known as Mr. TV, he had a pivotal role in ending Japan's more than three decades of leadership in the global TV industry in 2006.

"We see lots of opportunities in the appliances segment but we didn't strongly grow the business - simply, it didn't get proper treatment," Yoon said after unveiling a new four-door Internet-connected fridge at the electronics show.

His remarks come only hours after Samsung Electronics said it likely earned a record quarterly operating profit of $8.3 billion, aided by roaring sales of smartphones.

Samsung's CE division is estimated to have earned around 13 trillion won ($12.22 billion) of revenue in the fourth quarter, or roughly a quarter of its total revenue.

TV sales generally account for around 70 percent of CE performance, and the rest comes from selling appliances such as fridges, ovens and laundry, according to analysts. Samsung does not provide breakdowns.

It's been a low-margin business compared with smartphones, which generate around 25 percent of margin, and the division's operating profit contribution is estimated at around 4 percent.

Yoon also said Samsung, the world's top maker of TVs, was aiming to sell 55 million flat-screen TVs this year, up from 51 million last year, even as the industry is set to remain stagnant due to the weak global economy.

Betting large TVs with over 65-inch screen sizes will lead the growth, Samsung Electronics unveiled three models of ultra high-definition (HD) TVs that boast four times better picture quality than full HD models.

ACQUISITIONS IN MEDICAL SECTOR

Yoon also heads Samsung's corporate design centre and oversees the medical equipment business, which was added to the consumer electronics division this year.

Samsung Electronics acquired a controlling stake in Korean ultrasound equipment firm Medison in 2010 and its affiliate later for around $300 million in total, its biggest ever acquisition in the healthcare industry.

Yoon expected sales from its medical devices would reach $500 million this year, up from $300 million last year, and will grow with the acquisition of companies that make MRI scanners and computed tomography machines.

Samsung Electronics has said it plans to spend 1.2 trillion won in the medical equipment business by 2020 to make it a $10 billion operation by then.


Do you have information you wish to share with Dawn.com? You can email our News Desk to share news tips, reports and general feedback. You can also email the Blog Desk if you have an opinion or narrative to share, or reach out to the Special Projects Desk to send us your Photos, or Videos.

More From This Section

Goodbye, Orkut!

Google apologises to those who still actively use the service.

Holy app!

Motivate and empower yourself with these inspiring online resources.

Comments (0) (Closed)