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Samsung Electronics is driving itself crazy with MP3 players, churning out products on an almost weekly basis in a desperate bid for recognition as a world leader in the field.
In the U.S., the birthplace of HDD MP3 players, the company has issued a challenge to Apple while introducing to markets its W900,000 (US$870) diamond-studded luxury MP3 players.
Explanations vary, but the most common is that the MP3 market's future looks bright while the popularity of MP3 players among the young -- future consumers -- could help improve Samsung's corporate image. The domestic MP3 market grew from 800,000 units in 2003 to 1.8 million units in 2004, and is expected to total 2.5 million units this year. The global market is expected to grow from last year's 20 million units to over 30 million this year.
Others say that as more consumers buy MP3 players, the challenge of developing all-in-one portable digital devices allowing users to play games, watch movies and receive broadcasts in an age of "convergence" may have provided another motivation.
But the background to Samsung's MP3 frenzy is best summarized in one word: pride.
During a high-level management meeting in January, Samsung Electronics vice chairman Yun Jong-yong picked up one of the firm's "Yepp" MP3 players and pointed out that while the company was the first to begin manufacture of MP3 players, its performance in that sector was disappointing.
"It's a US$200-300 product, so it can¡¯t be like a toy. We have to see if we can make MP3 players into luxury items,¡± he said. ¡°We must pay attention to not only internal functions, but also design." Samsung¡¯s management team appears to have been especially needled when Microsoft CEO Bill Gates singled out Samsung rival Reigncom's iRiver MP3 player during the Consumer Electronics Show -- the world's largest exhibition in the field -- in early January.
They felt it was absurd that Samsung failed to take the lead in MP3 players when it boasted a record US$10 billion in net profits last year and is a world leader in state-of-the-art cell phones and semiconductors. It is ironic that Samsung controls more than 50 percent of the world market for NAND flash memory chips, which are used in flash memory MP3 players, yet has not been able to make a name for itself for its MP players.
"The mood within the company is puzzlement why Samsung can't get recognition for its MP3 players, even through they aren't lacking in quality, design or branding,¡± a Samsung official admitted. He said the company would focus on producing high-end MP3 players - a strategy that worked in the mobile phone market, where the premium "Anycall" cell phones have done remarkably well.
(englishnews@chosun.com )
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