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Increased coverage of 4G network a gain to Samsung’s 2016 growth prospects

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Samsung Electronics is planning to tap into the increased penetration of 4G LTE network to boost its market share and further grow its revenues across the East African region in 2016.

In Kenya, Samsung said it expects a more robust growth, especially driven by its new 4G range of smartphones. This will grow further once Airtel and Orange roll-out their 4G services, a move that is expected to additionally grow the number of Kenyans switching to fourth generation devices.

“Mobile data subscription is growing at a fast pace especially among the millennials. Fast and reliable data will therefore be a key consideration when this demographic makes their next smartphone purchase,” said  Jung Hyun Park, the Vice President and Managing Director of Samsung Electronics East Africa Ltd. “Samsung is therefore gearing itself to provide quality, and affordable 4G-enabled devices in 2016.”

According to the Communications Authority of Kenya report, mobile data / internet subscriptions contributed 99% of the 21.5million internet users. Samsung is therefore focusing on devices that cater for this increased number of mobile internet subscribers and their need for faster internet access.

“Our new Galaxy A Series which comes with a wide range of choices including A3, A5 and A7, are not only focused into giving Kenyans the best android functionalities but also an unmatched internet experience via their 4G capabilities,” said Mr. Park.

According to technology research firm IDC, the 4G-enabled smartphone shipment overtook 3G-based devices for the first time in October 2015. This is a trend that is expected to gain momentum in 2016, especially in the emerging markets where shipments are on an upward trend. The IDC forecast indicates that the Middle East & Africa (MEA) region expected the highest growth in 2016 with shipments estimated to increase nearly 50 per cent year-over- year.

Globally, Samsung continued its market dominance with 85.6 million units shipped in the fourth quarter of 2015, up 14 per cent from the previous period last year. This took Samsung’s annual shipment to 324.8 million units, compared to 231.5 million units from its closest competitor.

Mr. Park added that locally, Samsung has retained its market leadership, in the midst of new entrants. “We have maintained the number one position in volume and value across all quarters in 2015, with the J Series model receiving tremendous uptake.”

Last year, Samsung launched the Galaxy J1, J5 and J7 that proved popular due to the large screens and the selfie features. These entry and mid-range devices are also 4G-enabled and in addition, have the palm recognition feature on the front camera that allows users to take selfies while maintaining their natural posture, making them further appeal to the millennials.

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