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bài báo cáo tham khảo về môn học financial and banking tương đối khó Finance and Banking is the operation of the monetary business through banks and specialized financial instruments. In addition, Finance and .
COLLEGE: ĐONG A UNIVERSITY DEPARTMENT: FINANCIAL - ACCOUNTING REPORT ENGLISH FOR FINANCE & BANKING Major Lecturer Member Class Finance and Banking Dương Công Danh Huỳnh Tấn Triệu (Leader) Phan Phạm Thanh Xuân Nguyễn Thị Vui Nguyễn Minh Thư Thân Hoàng Tú Như FB20A1A Đà Nẵng, Dec 2022 Major Finance and Banking MỤC LỤC I SAMSUNG COMPANY PROFILE Company information Featured products .3 Samsung's corporate strategy 2022 and 2023 Market share .4 II FINANCIAL RATIOS III RATIO ANALYSIS TO FORECAST Analysis .7 Forecast estimate .7 IV COMPETITORS ANALYSIS Apple 1.1 Corporate informations 1.2 About products 1.3 Market share and Valuable Brands 10 1.4 About revenue 10 Sony 11 2.1 Corporate informations 11 2.2 Major Products 11 2.3 Maket share 12 2.4 Revenue 12 V CONCLUSION 12 Samsung's strengths 12 1.1 Brand valuation 12 1.2 Dominates the Smartphone Market 13 1.3 Award Winning Brand .13 1.4 Ecologically Friendly Innovations 13 1.5 Market leader in televisions, LCD screens 13 1.6 Diversified Portfolio 13 1.7 Asia's market leader 14 1.8 Extensive distribution network 14 Development plan 14 2.1 Samsung's Global Strategy 14 2.2 Samsung's Transnational Strategy 15 Samsung’s Opportunities 15 3.1 Triple Protection Proposition 15 3.2 HR Management 15 3.3 Diversification and Acquisitions 15 3.4 Introduce Innovative Products 15 3.5 5G Technology 16 3.6 Samsung Makes Powerful Processor for Next-Gen Smartphone Gaming 16 Samsung’s Threats 16 4.1 Patent Infringement Controversies 16 4.2 Increased Competition .16 4.3 Legal and Regulatory Threats 16 4.4 Economic Uncertainty .16 4.5 Rise of Counterfeiting 16 4.6 Impending Court Cases 17 4.7 Dissatisfied Phone Users 17 4.8 LG’s Foldable Display Technology May Surpass Samsung 17 VI REFERENCE MATERIAL 17 I SAMSUNG COMPANY PROFILE Company information Samsung was founded by Lee Byung-chul in 1938 as a trading company Samsung, South Korean company that is one of the world’s largest producers of electronic devices Samsung specializes in the production of a wide variety of consumer and industry electronics, including appliances, digital media devices, semiconductors, memory chips, and integrated systems It has become one of the most-recognizable names in technology and produces about a fifth of South Korea’s total exports Featured products In 2019, Samsung celebrated 50 years since its inception, offered the world's first 8K HDR10 + content, launched their first foldable phone in 2019 and is called Samsung Galaxy Fold In 2020, launched Samsung Z Flip is the first phone with a foldable glass screen In 2021, Launched Galaxy S21 series, Galaxy Buds Pro In 2022, Galaxy Unpacked 2022 event: Samsung launches Z Fold 4, Z Flip 4, Galaxy Watch Samsung's corporate strategy 2022 and 2023 Samsung Electronics today reported financial results for the third quarter ended September 30, 2022 Total consolidated revenue was a record for the third-quarter at KRW 76.78 trillion despite a challenging business environment, while operating profit declined 23% from the previous quarter to KRW 10.85 trillion With record revenue in each of the respective quarters so far this year, the Company expects annual revenue to surpass the historical high set in 2021 In 2023, demand is expected to recover to some extent, but macroeconomic uncertainties are likely to persist The DS (Device Solutions) Division plans to actively address demand for high-density products and expand contributions from advanced nodes and adoption of new applications The DX (Device eXperience) Division will continue to strengthen the leadership in premium segments and enhance the multi-device connectivity experience across mobile, TVs and home appliances SDC expects to maintain earnings growth in the mobile panel business, driven by strong demand for premium OLED panels for smartphones The large panel business will expand the quantum-dot (QD)-OLED presence, increasing its customer base Mobile Display Earnings Improve; Large Display To Continue QD-OLED Expansion - In 2023, while macroeconomic challenges may persist, Samsung will focus on solid earnings through pre-emptive investments, development of differentiated technologies and effective management to ensure stable quality and yield Also, the Company will collaborate more closely with customers to increase its OLED market share, promoting the advantages of OLED in new application areas such as IT, Automotive and Gaming - Flagship Sales Drive Mobile Profit; To Seek Revenue Growth and Solid Profitability in 2023 In particular, in the AR/VR market, which is projected to enjoy full-fledged growth starting 2023, Samsung will develop the technologies that customers need and complete SCM in order to solidify its leadership in the display industry Market share - Samsung has been a consistent front-row competitor in the global smartphone market In the third quarter of 2022, Samsung held a global smartphone market share of 22 percent - Samsung retained its leading position with a 22% market share driven by heavy promotions to reduce channel inventory - Samsung's new product models such as the Galaxy Note 20, Galaxy Z Fold and Galaxy Z Flip foldable phones have helped its phone sales increase sharply in the domestic market in the third quarter In the fourth quarter of this year, Samsung's market share is expected to decrease slightly due to increased market demand for Apple's newly launched iPhone 12 model, which was sold in the Korean market on October 30 II FINANCIAL RATIOS Targets UNIT: million Caculating Method 2019 2020 PROFITABILITY OR RETURN ON INVESTMENT RATIONS (83.161/230.400)*100 (92.318/236.806)*100 Gross Profit / Net Sales = 36,1% = 39,0% (21.505/230.400)*100 (26.090/236.806)*100 Net Income / Net Sales = 9,3% = 10,1% (21.505/352.564)*100 (26.090/378.235)*100 Net Income / Total Assets = 6,1% = 6,9% (21.505/254.915)*100 (26.090/276.670)*100 = Net Income / Owners' Equity = 8,4% =9,7% Gross Profitability Net Profitability Return on assets Return on investment Return on investment = Net income / Investment Earnings per share = Net Income / Number of Shares Ourstanding Investment turnover = Net Sales / Total Assets Sales per employee = Total Sales / Number of Employee Current ratio Current Assets/Current Liabilities 10 Quick ratio (or "acid test") Quick Assets / Current Liabilities =(Current Assets - Inventory) / Current Liabilities 11 Cash to total assets Cash/Total Assets 12 Sales to receivables (or turnover ratio) Net Sales/Accounts Receivable 13 Days' receivables ratio 365/Sales to receivables ratio 14 Cost of sales to payables Cost of Sales/Trade Payables 21.505/5.970 = 3,6 2021 (113.19/279.604)*100 = 40,5% (39.243/270.604)*100 = 14,0% (39.243/426.237)*100 = 9,2% (39.243/296.237)*100 = 13,2% 26.090/5.969 = 4,4 39.243/5.969 = 6,6 (26.090/5,969) =4.370,5 (236.806/378.235)*100 =63,1% (378.235/0,10949) = 3.454.516,4 (39.243/5,969) =6.573,7 (279.604/426.621)*100 =65,5% (426.237/0,11349) =3.755.722 (198.215/75.604) =2,62 (218.163/88.117) =2,48 ((181.385-26.766)/63.782) =2,42 ((198.215-32.043)/75.604) =2,2 ((218.163-41.384)/ 88.117) =2,01 (39.031/426.621) =0,08 (230.400/39.310) =5.861,1 (365/ 5.861,1) =0,06 (21.849 / 2.184) = 10,0% (29.382/378.235) =0,08 (236.806/34.569) = 6.850,2 (365 / 6.850,2) =0,05 (21.396 / 1.682) =12,71% (26.885/352.564) =0,09 (279.604/45.210) = 6.184,5 (365/ 6.184,5) =0,06 (24.687 / 2.991) =8,25 (21.505/5,970) = 3.602,1 (230.400/352.564)*100 =65,3% (352.564/0,10526) = 3.349.458,5 LIQUIDITY RATIOS (181.385/63.782) =2,84 (230.400/117.602) =1.96 LEVERAGE RATIOS (18.412/254.915)*100 Debt / Owners' Equity =7,2% (18.412/352.564)*(100) Debt / Total Assets =5,2% (119.825/234.211)*100 Net Fixed Assets / Tangible Net Worth =51,2% (Earnings before Interest +Taxes) / (30.432/686) Interest Expense = 44,24 EFFICIENCY RATIOS 15 Cash turnover Net Sales/Net Working Capital 16 Debt to equity ratio 17 Debt ratio 18 Fixed to worth ratio 19 Interest coverage 20 Annual inventory turnover Cost of Goods Sold for the Year/Average Inventory 21 Inventory holding period 365/Annual Inventory Turnover 22 Inventory to assets ratio Inventory/Total Assets 23 Accounts receivable turnover (credit) Net Sales/Average Accounts Receivable (26.766/352.564)*100 = 7,59% (236.806/122.611) =1,93 (279.604/130.046) =2,15 (20.217/267.670)*100 =7,56% (20.217/378.235)*100 =5,3% (128.952/ 249.201)*100 =51,7% (36.345/583) = 62,34 (18.392/296.237) =6,2% (18.392/426.612)*100 =4,3% (149.928/276.001)*100 =54,3% (53.351/431) =124,6 (144.488/ ((32.043+26.766)/ 2)) = 4,91 (365/4,91) = 74,28 (32.043/378.235)*100 = 8,47% (236.806 / ( (1.741 + 1.828)/ 2) =236.806 / 1.784,5 =132,7 (166.411/((41.384+32.043)/2)) = 4,53 (365/ 4,53) =80,53 (41.384/426.621)*100 = 9,7% (279.604 / ( (-7.506) + 1.741)/ 2) = 279.604 / (-2.882,5) = -97,0 III RATIO ANALYSIS TO FORECAST Analysis Return on assets Current ratio Debt to equity Inventory to assets ratio 2019 6,1% 2,84 5,20% 0,08 2020 6,9% 2,62 5,30% 0,085 2021 9,2% 2,48 4,30% 0,097 2022F 11,3% 2,32 3,9% 0,107 2023F 14,5% 2,18 3,4% 0,120 * Return on Assets (ROA): In general, ROA from 2019 to 2021 increased, specifically from 6.1% to 9.2% showing that Company has a high return on assets then the company is less assetintensive A higher ratio is more appealing to investors since it demonstrates that the company is better at managing its assets to generate more net income A rising return on assets signifies that the company is gaining profits with each Won invested It proves that the efficiency of the company's asset exploitation is improving day by day * Current ratio: The current ratio for three years is greater than 2, showing that the company's current assets are larger than its current liabilities However, this ratio tends to decrease from 2.84 to 2.48 because the strong outbreak of the epidemic in 2019 and 2020 has affected the company's performance, but the company still has the ability to pay the bills This ratio is decreasing, indicating a high level of debt repayment by the company By 2021, this coefficient drops to 2.48 showing that safe investments are still put to good use in the business because the current ratio is generally between and for healthy businesses Samsung company still be able to more likely to meet its liabilities in 12 months * Debt to equity ratio: The debt to equity ratio represents the capital a business has raised from lending to its equity, and it is used to gauge a company's financial leverage This ratio is less than 1, from 5.2% down to 4.3% showing that the company's financial capacity is strong In addition, a low ratio also shows that the company's capital for operations comes from abundant equity, low debt, not under much financial pressure, and is doing business effectively Therefore, the debt to equity ratio of the company is considered safe because the company managed debt risk and financial leverage quite well * Inventory to assets ratio: This ratio over the past years tends to increase from 7.59% in 2019 to 9.7% in 2021 It shows that inventories over the past years have increased assets have also increased The increase in inventory has had a great impact on this ratio, so an increase in the inventory to assets ratio has a negative impact on the business performance of Samsung Group Generally, the company should put in place appropriate policies to manage inventory more effectively Forecast estimate Image 3.1 Image 3.2 Image 3.3 *Return on assets: It is forecasted that ROA will continue to increase in the Image 3.4 next two years because Samsung is launching many products such as chips, smartphones, and computers It has a strong impact on the company's income, total assets, and net profit in the next two years will increase, leading to an increase in return on assets The very effective management company *Current ratio: Regarding current solvency, the next two years are forecast to have a downward trend, but this ratio is still greater than 1, indicating that the corporation has enough capital to pay short-term debts and it has no liquidity concerns about short-term accounts The company's ability to pay short-term debts is quite good *Debt to equity ratio: In the next two years, the debt-to-equity forecast tends to decrease, showing that corporate capital from equity is abundant, with little external debt, is not under much financial pressure, and is doing business effectively The company has a leadership department to operate business operations and manage debt well *Inventory to assets ratio: The ratio of inventory to assets increases over the years, so it is forecasted that this ratio will continue to increase in the next years because in our opinion the total inventory increase has a great impact on the total assets of the company and this ratio will also affect other ratios Impact on the company's business performance in the following years Conclusion: The above indicators partly reflect the business performance of Samsung In addition, we also make forecasts for the next two years to get these objective forecast ratios We find that the company has a lot of diverse and unique products, stores are located in many countries in the world, experienced management board and famous corporate brand, high reputation in many countries IV COMPETITORS ANALYSIS Apple 1.1 Corporate informations CEO: Tim Cook Headquarters: Cupertino, California Sector(s): Technology Industry: Consumer Electronics Full Time Employees: 164,000 It is considered one of the Big Four technology companies, alongside Amazon, Google, and Microsoft 1.2 About products Some outstanding products launched by Apple can be mentioned as: - iPhone: iPhone 12 (Pro, Pro Max); iPhone 13 (Pro, Pro Max) (2021) - Computer: MacBook Air (M1 chip, 2020 launch), MacBook Pro (M1 chip, late 2020), MacBook Air 2020 Intel chip version In the financial report, Apple announced revenue from iPhone reached 42.6 billion USD, increased 9.7% year-over-year Some of the widest selling Smartphone series belongs to Samsung These are the Samsung Note series, the Samsung Galaxy series as well as the Galaxy Edge series iPhone 13 Pro Max and Samsung Galaxy Z Fold3 are the two "horses" of the two giants Apple and Samsung Samsung Galaxy Z Fold3 achieved sales of 2.5 million Z Fold3 units in 2021 1.3 Market share and Valuable Brands iPhone market share in Q3/2022 increased sharply compared to Android competitor Apple reaches 18% of the global market share, increaseed 3% year-on-year Meanwhile, Samsung reaches 22% of the global market share, increased from 21% to 22%, The above results help to reduce the market share gap between Apple and Samsung in the last quarter from 6% to 4% Apple Iphone has the lions share of Smartphones in US and it is second highest market share holder worldwide and is one of the strongest Samsung competitors in the business Gap between Apple and Samsung in Q3/ 2022 The Most Valuable Brands Apple retains its top spot on the ranking as the world’s most valuable brand with a total brand value of $335.1 billion Samsung Group ranking with brand value with a total brand value of $107.3 billion 1.4 About revenue Apple Revenue 2019-2022 Apple revenue for the twelve months ending September 30, 2022 was $394.328B, a 7.79% increase year-over-year Apple annual revenue for 2022 was $394.328B, a 7.79% increase from 2021 Apple annual revenue for 2021 was $365.817B, a 33.26% increase from 2020 Apple annual revenue for 2020 was $274.515B, a 5.51% increase from 2019 In the financial report of Q3/2022, Apple achieved revenue of 83 billion and profit of 19.4 billion USD 10 Earnings per share reached 1.2 USD in the quarter Apple's revenue grew 8.1% to $90.1 billion in the Q3 The Conglomerate's net profit during this period also reached a record of 20.7 billion USD The iPhone was the flagship product line, accounting for nearly half of total sales this quarter Apple’s revenue by product category in Q3/2022: • iPhone: 40.67 billion USD (Increased 3% y-o-y) • Mac: 7.38 billion USD (decrease 10% y-o-y) • iPad: USD 7.22 billion (decrease 1.9%) The number of active iPhones grows year by year Revenue for Samsung Revenue in 2022 (TTM): According to Samsung's latest financial reports the company's current revenue (TTM) is $241.60 B In 2021 the company made a revenue of $240.71 B an increase over the years 2020 revenue that were of $203.43 B Because their mobile device business is selling well It comes from folding phones like the Samsung Galaxy Z Fold and Z Flip 4, or the Galaxy Watch and Galaxy Buds Sony 2.1 Corporate informations CEO: Yoshida Kenichiro Headquarters:Minato-Ku,Tokyo, Japan No of Employees: 108,900 Sector(s): Technology Industry: Consumer Electronics 2.2 Major Products Sony's key products include: 11 TV products: Sony is a leading brand in the production of TVs and other products like projectors, music players, DVD players, cameras, music systems, PlayStation: Games & Network Services PlayStation is the worldwide market leader in the gaming console segment Sony offers products that appeal to a wide range of customers Sony is in the high-end segment for audio equipment products Sony laptops are priced in the mid-range segment Game Consoles, on the other hand, are in the high-end segment 2.3 Maket share In which, Samsung holds the largest share, Samsung leads with 31.5% of the global TV market share and Sony holds 7.4% of the market share In the premium TV segment, with TVs priced at $2,500 or more, Samsung dominates 53.6% of the global market, Sony with 17.2% 2.4 Revenue Sony Revenue 2019-2022 Sony revenue for the twelve months ending September 30, 2022 was $83.815B, a 5.31% decline year-over-year Sony annual revenue for 2022 was $88.301B, a 4.38% increase from 2021 Sony annual revenue for 2021 was $84.594B, a 11.32% increase from 2020 Sony annual revenue for 2020 was $75.991B, a 2.56% decline from 2019 Revenue in 2022 (TTM): According to Sony's latest financial reports the company's current revenue (TTM) is $80.87 B In 2021 the company made a revenue of $87.80 B an increase over the years 2020 revenue that were of $79.84 B Sony obtains the best-ever revenue for the fiscal year 2021-2022 due to results good in film, electronics and music V CONCLUSION Samsung's strengths 1.1 Brand valuation In 2019, this brand value reached 53.1 billion USD (up 11% compared to 2018) By 2020 this figure is $ 209.5 billion and puts Samsung in the Top 10 Most Valuable 12 Brands in the world in the field of technology on the Forbes report Samsung ranks position by Interbrand in 2021 – with a brand value of $74.6 billion By 2022 Samsung Group ranking with brand value with a total brand value of $107.3 billion The Most Valuable Brands in 2022 In addition to focusing on improving quality, product design and modern technology application, Samsung also focuses on responsible business practices (CSR) to maintain an environmentally and socially friendly brand image Therefore, Samsung has always been solid and received the love of many users despite the appearance of new phone brands 1.2 Dominates the Smartphone Market Samsung has dominated the smartphone market for years According to 2021 report by Gartner, Samsung has maintained the No spot globally with a 19% market share in smartphone sales, whereas Apple is in the second spot with 16.7% market share and Xiaomi in the third spot with a 13.2 % market share 1.3 Award Winning Brand Samsung’s position as a pioneer for innovation is backed with credibility Samsung has won many awards for its products Samsung has been awarded the CES (Consumer Electronics Show) owing to its product designs and innovation for many years It went on to receive 43 CES awards in 2022 Moreover, It secured 48 awards at the International Design Excellence Awards (IDEA) 1.4 Ecologically Friendly Innovations Samsung has enhanced its brand reputation through its environmentally friendly innovations It secured its ranking at 8th position in the Top 30 Tech and Telecom companies of the Environmental Protection Agency (EPA) 2022 Green Power It also received a rare ENERGY STAR Corporate Commitment Award Samsung’s product efficiency has saved approximately 270 million metric tons CO2 emissions worldwide since 2009 Other companies not share this achievement and hence increases Samsung’s appeal across all business units 1.5 Market leader in televisions, LCD screens In addition to leading the smartphone market share mentioned above, Samsung has continuously maintained its leading position in the industry with products that meet consumer needs Although in recent years, the market share of enterprises has declined somewhat (20% fell to 17% in 2019), Samsung still holds the leading position in the industry and is the largest LCD panel manufacturer in the world 1.6 Diversified Portfolio Samsung has a very diversified portfolio, and it operates four divisions: 13 Consumer Electronics – represents about 20% of total revenue The division sells home electric appliances such as TV, washing machines, air conditioner, monitors, and refrigerators Information technology & Mobile communications – represents about 39% of total revenue The division has products such as smartphones, network systems, and computers Device Solutions – is the largest division of Samsung and accounts for about 45% of total revenue It consists of two sub-divisions: Semiconductor (75% of divisional revenue) and Display Products (25% of divisional revenue) Products sold in this division include DRAM, NAND flash, mobile AP, mobile OLED panels, LCD panels, and semiconductor-related products Harman – was acquired by Samsung in 2017 and represents 4% of total revenue Harman manufactures and sells digital cockpit, telematics, and speakers 1.7 Asia's market leader Samsung is not only a domestic brand loved by domestic consumers but also a brand trusted by many countries in Asia The most prominent of which is the world's leading densely populated market is India To achieve the current achievements, Samsung always strives to implement sales and customer care policies to bring the best experience to users As a result, the annual consumption of the business is always stable and makes Samsung a leading giant in the industry 1.8 Extensive distribution network Currently, consumers can easily buy Samsung products at phone stores, brand centers, genuine stores or order online throughout the provinces Such a wide distribution network partly speaks of the spread and growth of the world's leading electronics brand – Samsung Development plan 2.1 Samsung's Global Strategy A global strategy is a competitive strategy aimed at increasing profits on a costcutting basis on a global scale This is a popular strategy for businesses dealing in standardized products, competing mainly based on cost – price such as electronic components, semiconductors, semi-finished products Businesses pursuing a global strategy often launch the same products and use the same marketing strategy across all markets Samsung's international business strategy allows each Samsung subsidiary to be responsible for delivering services or products to local customers' production lines 14 The proof of Samsung's global strategy lies in its flagship smartphone, the "Galaxy." The Galaxy is available in almost every country with uniform specs and features, regardless of that country's needs With its global strategy, Samsung was able to save costs due to standardized products and using the samemarketing strategy 2.2 Samsung's Transnational Strategy Another international business strategy of Samsung today is the Transnational Strategy The reasons that Samsung chose transnational strategy for its international business strategy can be mentioned as: High local adaptation pressure: due to different tastes in each country and differences in the policies of the host country High cost reduction pressure: more domestic manufacturers appear with large enough production lines, modern enough to compete For Samsung's international business strategy at this stage, Samsung has expanded, building manufacturing plants in new regions such as in Egypt and South Africa Earlier, when opening the factory in Nigeria, Samsung made appropriate adjustments to the scale of operations, production lines due to differences in infrastructure and tax breaks available in the region So, with its transnational strategy, Samsung has taken care of the development of the economy on a regional scale In addition, another example of Samsung also paying attention to the needs of active countries is the introduction of a line of low-cost smartphones, called Galaxy A This line of phones is not available in the United States because of high average income as well as discounted purchasing policies of the carrier So, the Galaxy A is only sold in countries outside the US, at an extremely affordable price Samsung’s Opportunities 3.1 Triple Protection Proposition Samsung is preparing to launch its new air conditioning product called the ‘Triple Protection Proposition’ that incorporates cutting edge technology and impeccable construction The product is geared towards a target customer base that would ensure maximum customer retention 3.2 HR Management Samsung can make impressive transformational accomplishments if it invest in its HR management Not only would it be good for its sales but it will also give it competitive leverage over its rival The company can utilize its brand image and hire highly qualified and skilled employees to improve employee performance and productivity 3.3 Diversification and Acquisitions It is critical that Samsung avoids the mistake of being limited to just one marketplace It not only invites risks from an economic perspective, but it also attracts unwanted political polarization and negative media publicity That’s why there is a business vacuum present in the Asian and European economies in which Samsung can thrive It needs to expand its customer base as well It can only be achieved through diversification and acquisitions of other businesses Samsung is a popular brand and can generate impressive revenues thanks to its financial standing 15 3.4 Introduce Innovative Products The smartphone sector is highly dynamic, with the latest trends going out of style in an instant Samsung can attain immense growth by setting the trend with great and innovative products like the foldable phone 3.5 5G Technology As the world moves to 5G, Samsung has the capacity and know-how to exploit this opportunity The company is already in active commercial discussions with operators in the EU to supply 5G and 6G network equipment Samsung is one of the top companies in the UK’s list of potential 5G providers 3.6 Samsung Makes Powerful Processor for Next-Gen Smartphone Gaming The South Korean tech giant recently launched its cutting-edge Exynos 2200 processor that’s integrated with the Xclipse GPU from AMD At the forefront of groundbreaking semiconductor tech, Samsung’s new Exynos processor is the next level mobile processors designed with multiple CPU cores for exhilarating and breathtaking mobile phone gaming graphics and performance The Exynos 2200 is also integrated with updated NPU (neural processing unit) and also features RT (ray tracing) technology Samsung’s Threats 4.1 Patent Infringement Controversies Samsung has been involved in controversies that have threatened its business Its rival Apple filed a lawsuit against Samsung for patent infringement which underwent a heated court battle for seven long years until finally reaching a settlement However, the company suffered consequences when a jury decided that Samsung had indeed copied Apple and was to pay $1.049 billion in damages This suit damaged the company’s reputation and its sales 4.2 Increased Competition Competition from opponents especially from those within the consumer electronics, smartphone products, and computing industries has reached a record high Whether it’s Xiaomi, Apple, or Huawei, all the technological competitors are outmaneuvering and outperforming each other to become the best technology company This only increases the pressure for Samsung in both competition and finances 4.3 Legal and Regulatory Threats With the world becoming more globalized and digitally oriented, governmental authorities have begun issuing their guidelines which are increasing legal and regulatory threats to companies around the globe Samsung is no exception to these rules Laws differ from market to market, and these strict regulations cause a hindrance in operations Failure to comply could even result in a complete shutdown in the respective market which may be fatal for Samsung 4.4 Economic Uncertainty Recent events have catalyzed uncertainty in the global market and led to a decline in new smartphone sales Financial struggles have forced many consumers to seek recycled or refurbished phones, which has increased by 24% Samsung has already experienced a decline in sales, and it can drop further if uncertainty persists 4.5 Rise of Counterfeiting According to numerous research studies, Samsung is by far the most counterfeited phone brand Statistics from mobile benchmarking site AnTuTu 16 highlight that over 36% of all counterfeit smartphones are Samsung copies Also, Samsung Galaxy S7 Edge holds the record of the most counterfeited smartphone model 4.6 Impending Court Cases Any disruption in leadership can affect performance A South Korean court is debating whether to send Samsung’s leader and heir Jay Lee back to jail New allegations of stock-price manipulation and audit-rule violations have dogged the executive and threaten to throw the company into another tumultuous period without leadership 4.7 Dissatisfied Phone Users There’s a lot of buzz on the internet on how Samsung Galaxy S users are unable to clear their cache According to one complaint, as soon as a user deleted their entire cache and then re-entered the cache setting, all the data was still there No matter how many times you delete the cache, it doesn’t go away Samsung support desk asked one user whether it is like this on other social media apps like Instagram or YouTube and the user replied that the problem only lies with the Samsung internet app 4.8 LG’s Foldable Display Technology May Surpass Samsung While it’s true that LG doesn’t seem to be making big waves in the smartphone industry, it’s also true that the company has several different divisions These divisions manufacture core parts or components for different smartphones and mobile devices LG Chem recently introduced their new foldable display technology, asserting that it’s effortlessly greater than the current glass displays – particularly the types of materials Samsung uses Unlike Samsung, LG claims that their new material is made with a specialized coating that has the same consistency of hard glass, yet it is malleable like plastic VI REFERENCE MATERIAL Plc, G.D (no date) Samsung Electronics Co Ltd Company Profile - Samsung Electronics Co Ltd Overview, GlobalData Available at: https://www.globaldata.com/company-profile/ samsung-electronics-co-ltd/ (Accessed: December 1, 2022) Bhasin, H (2018) Top 21 Samsung competitors - competitor analysis of Samsung, Marketing91 Available at: https://www.marketing91.com/samsung-competitors/ (Accessed: November 29, 2022) Bhasin, H (2018) Top 21 Samsung competitors - competitor analysis of Samsung, Marketing91 Available at: https://www.marketing91.com/samsung-competitors/ (Accessed: November 29, 2022) Hafiz, M et al (2022) Samsung Swot Analysis 2022: SWOT analysis of Samsung, Business Strategy Hub Available at: https://bstrategyhub.com/swot-analysis-of-samsung-2019samsung-swot-analysis/ (Accessed: November 20, 2022) Sony Total Assets 2010-2022: Sony (no date) Macrotrends Available at: https://www.macrotrends.net/stocks/charts/SONY/sony/total-assets (Accessed: December 1, 2022) 17 Todorov, G and Georgi TodorovGeorgi Todorov is the founder of ThriveMyWay (2022) 55 remarkable Sony stats and facts: Usage, products, employee, revenue, and more, Learn Digital Marketing Available at: https://thrivemyway.com/sony-stats/ (Accessed: December 28, 2022) 18