The Demand of Samsung

I. The demand for smart retrieves knowledge domainwide. The worldwide mobile phone merchandise grew 1. 9% year over year in the fourth attract of 2012 (4Q12), as the number of smartphone sales raised to levels nearly equal to those of separate phones. 219. 4 billion units in 4Q12, which represents 45. 5% of all mobile phone shipments, the highest percentage ever. On an annual basis, 712. 6 million smartphones were shipped globally in 2012, which was 44. 1% much than in 2011. Top Five Smartphone Vendors, Shipments, and commercialize voice Calendar Year 2012 (Units in Millions) Vendor2012 Unit Shipments2012 Market Share2011 Unit Shipments2011 Market ShareYear over Year Change 1. Samsung215. 830. 3%94. 219. 0%129. 1% 2. Apple135. 919. 1%93. 118. 8%46. 9% 3. Nokia35. 14. 9%77. 315. 6%-54. 6% 4. HTC32. 64. 6%43. 68. 8%-25. 2% 5. Research In Motion32. 54. 6%51. 110. 3%-36. 4% Others260. 736. 5%135. 327. 5%92. 7% Total712. 100. 0%494. 6100. 0%44. 1% Source IDC widely distributed M obile Phone Tracker, January 24, 2013 -The huge demand from all over the world -> the need for expanding the output facilities as healthy as the employees. II. Production visualize -Over the world,Samsung has shows in 5 countries China,Korea,Brazil,India and Viet Nam. The Vietnam unit of the company has counterbalanceed construction on the plant in Yen Binh Industrial Park in Thai Nguyen province.Operation of the plant, which depart mainly produce mobile phones, is expected to start from the end of the year, and production is projected to be boosted since 2014 to hit 120 million units by 2015. -Together with the original plant in Bac Ninh Industrial Area in Vietnam, the completion of the advanced plant will lift production capacity of Samsungs Vietnam unit to 240 million by 2015, accounting over half of Samsungs total projected capacity. superlative Minister Nguyen Tan Dung (2nd, R), leaders of Samsung and guests press the button to start work on the hi-tech complex of S amsung in Thai Nguyen >The locations of the situationories reserve major effects on the firms performance as establishing factories in these countries helps reduce the cost of renting space as well as the labor cost than in other countries due to the fact that they are big countries with a high population. ->helps increase the revenue of the firm. -The to a greater extent factories they build, the more benefits they gain because according to economies of scale, the average cost per unit produced declines as the firm produces more units as the facilities stay the same. ->helps sell more products-> more profit.