People all over the world know Samsung. In the smartphone market, its only rival is Apple. However, what most people do not know is that smartphones are just one product of Samsung Electronics, which is an affiliated division of Samsung. Samsung Electronics is the world’s largest IT and consumer electronics company. Samsung has many more such divisions, so one can imagine how big Samsung is, as a company.
Samsung is the largest of the South Korean multinational conglomerates known as the chaebols. Samsung’s revenue is almost one-fifth of South Korea’s GDP. It has its headquarters in Samsung Town, Seoul.
Samsung has the 6th highest global brand value and ranked as the 14th largest company in the world in 2018. Samsung achieved $225 billion in sales, $41 billion in profit, $293 billion in assets and a market cap of $326 billion in 2017. Continue reading to gain information regarding the net worth of Samsung in 2020.
Samsung was founded in 1938 by Lee Byung-Chul from Daegu city of South Korea, who belonged to a large landowning family. The company was called Samsung Sanghoe and started as a small trading company dealing in dried-fish, groceries, and noodles, with forty employees.
In 1947, the company grew big, and Lee moved the head office to Seoul. But due to the Korean War, he had to move out of Seoul. He founded a sugar refinery in Busan. Later he founded the largest woolen mill in Daegu.
Lee wanted to establish Samsung as a leader in a diversified range of industries. Samsung diversified into many different areas such as insurance, securities, and retail. Later Samsung Group also entered the electronics industry in the late 1960s. Lee created several divisions in diversified areas, such as Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung Corning, etc. It created the manufacturing facility in Suwon.
Samsung Electronics launched its first electronics product, which was a black-and-white television set. Samsung never looked back after this as it began climbing to greater heights in the electronics industry.
In 1980, Samsung acquired the company Hanguk Jeonja Tongsin, which was into telecommunication and manufactured switchboards, phones and fax. These and a few more companies were grouped together as Samsung Electronics, which later became one of the largest manufacturers of mobile phones.
After 1987, post-demise of the founder, Samsung Group was divided into four business groups—Samsung Group, Shinsegae Group, CJ Group and the Hansol Group. These groups are now independent entities.
Samsung also manufactured motor vehicles, but later its 80.1 % stake was sold to Reynolds in 1997. Samsung even manufactured aircraft, but now only manufactures aircraft engines and gas turbines.
In the 1980s, Samsung Electronics invested heavily in research and development. In 1982, Samsung launched its first PC named SPC-1000. It built television assembly plants in Portugal in 1982, in New York in 1984, in Tokyo in 1985, in the UK in 1987, in Austin in 1996 and also in India in 2017.
In 2000, Samsung started an R&D center in Warsaw, which worked in the area of set-top-box technology, digital TV, and smartphones. It later developed into the Samsung Galaxy line comprising of Samsung Note and Samsung Edge.
In 2006 in collaboration with Sony, S-LCD was established as a 51-49 JV with manufacturing facility at Tanjung. Samsung later acquired Sony’s stake in the JV.
In 2011, Samsung Electronics sold its HDD business to Seagate. In 2012, there was a setback as American jurors ruled that Samsung had to pay Apple $1.05 billion in damages for violating six of its patents on smartphone technology.
On 14 March 2013, Samsung launched the Galaxy S4 to worldwide success. In September 2014, Samsung launched Galaxy Note 4 and Gear VR Virtual Reality eyewear. Samsung Electronics Inc. expanded to Silicon Valley with a $300 million facility in San Jose, California.
In January 2016, Samsung announced that it would be working with Microsoft to develop IoT devices based on Windows 10. Samsung also released Gear Icon X, wireless earbuds and Gear Fit 2, a fitness smartwatch.
In August 2016, Samsung launched the Galaxy Note7 smartphone. However the phones were recalled as there were reports of its batteries exploding, and Samsung stopped production of the smartphone. In 2016 Samsung also launched Gear S3 smartwatches.
In March 2017, Samsung launched its new Samsung Galaxy S8 and S8+ flagship smartphones. In August, same year Samsung announced its Samsung Galaxy Note8 flagship smartphone. Samsung also launched a number of low-end and mid-range phones, as well as the Samsung Galaxy S8 Active smartphone.
In 1992, Samsung became the world’s largest producer of memory chips, and today is second only to Intel. In 1996, it made the first LCD screen and by 2005 became the world’s largest manufacturer of LCDs. Samsung has the largest database of LED TV Service center in the world.
Samsung’s construction vertical has built the Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in Dubai.
In 2012, Samsung Electronics became the world’s largest mobile phone maker overtaking the market leader since 1998, Nokia.
In 2015, Samsung was granted 7,679 patents in the U.S., which is the highest for any company.
As of today, the only nearest rival that Samsung has in the smartphone business is Apple. However, Samsung is far ahead of any company in total smartphone sales.
Net Worth & Earnings:
Samsung as the second largest technology company in the world in 2018; coming second only to Apple. Samsung has also ranked as the 14th largest company in the world in 2018.
During the year 2017, Samsung achieved a sales revenue of $225 billion and reaped a profit of $41 billion. Samsung has a market capitalization worth $326 billion. The net worth of Samsung is pegged at $295 billion.
A company as big as Samsung has considerable influence on South Korea’s economic development. Samsung has also affected South Korea’s politics, media, and culture. Samsung is credited to be a major driving force behind the Miracle on the Han River. This phrase refers to the period of rapid economic growth in South Korea following the Korean War.
It represents the period when South Korea began its transformation from one of the world’s poorest countries to a developed country and an economic giant. Samsung and its affiliate companies account for one-fifth of South Korea’s total exports, and its revenue also equals almost one-fifth of South Korea’s GDP.