Almost as if Samsung (SSNLF.PK) wasn’t content to become the number one cell phone brand worldwide this year, the company wants to increase its sales further next year to a staggering 510 million phones, of which around 390 million would be smartphones.
Samsung had a strong 2012 with 288 million sales up to September and 420 million projected for the whole of 2012. Sales this year already put Samsung on top of Nokia (NYSE:NOK) as the largest manufacturer, and sales figures have Samsung leaps and bounds ahead of Apple (NASDAQ:AAPL) and all other competitors. Samsung is now working out ways to maintain high sales for 2013 in case the smartphone market lulls.
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CHEAT SHEET Analysis: Would these sales boost Samsung’s stock?
One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. If Samsung can increase its sales by some 20 percent for 2013, that should be more than sufficient reason to expect some serious movement in the company’s shares.
Samsung has already managed to challenge sales estimates by the likes of Gartner, as it pushes to well exceed 300 million sales for 2012, which is the upper-limit of sales Gartner predicted for 2013. Samsung is also latching onto the 4G LTE trend and trying to produce more LTE-capable phones at more reasonable prices — a move which could garner high sales to frugal consumers who want the speed of the new LTE networks. Samsung is also developing Windows Phone devices.
So, as Samsung takes the top seat in the phone market, it seems to have plans to push its lead even further ahead of the competition. This acceleration by the company should prove favorable for its share value. However, if there is too much focus on sales volume and the company tries to reduce prices to entice consumers, sales margins may take a hit.
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