The Demand of Samsung

I. The submit for smartphones worldwide. The worldwide roving phone merchandise grew 1. 9% stratum over year in the fourth quarter of 2012 (4Q12), as the number of smartphone sales raised to levels well-nigh equal to those of other phones. 219. 4 million units in 4Q12, which represents 45. 5% of all mobile phone shipments, the luxuriouslyest percentage ever. On an yearbook basis, 712. 6 million smartphones were shipped globally in 2012, which was 44. 1% much than in 2011. brighten Five Smartphone V completionors, Shipments, and market place Share calendar form 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 Worldwid e Mobile think Tracker, January 24, 2013 -The huge demand from all over the world - the need for expanding the production facilities as well as the employees. II. Production jut -Over the world,Samsung has positions in 5 countries China,Korea,Brazil,India and Viet Nam. The Vietnam unit of the keep company has fixed construction on the plant in Yen Binh Industrial Park in Thai Nguyen province.Operation of the plant, which will mainly uncover mobile phones, is expected to start from the end of the year, and production is intercommunicate to be boosted since 2014 to take away 120 million units by 2015. -Together with the occurrent plant in Bac Ninh Industrial bowl in Vietnam, the completion of the new plant will lift production talent of Samsungs Vietnam unit to 240 million by 2015, explanation over half of Samsungs total projected capacity. Prime Minister Nguyen Tan gook (2nd, R), leaders of Samsung and guests press the button to start work on the hi-tech knotty of Sams ung in Thai Nguyen The locations of the featureories have major(ip) effects on the firms performance as establishing factories in these countries helps squinch the embody of renting space as well as the labor price 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 more(prenominal) than 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.