Samsung Electronics’ net sales in China surpassed those in South Korea for the first time in 2013, an analysis of the tech giant’s corporate report showed Wednesday.
A review of the company’s corporate data by Yonhap showed that Samsung’s net sales in China hit 40.15 trillion won ($39.22 billion) last year, far greater than the 22.78 trillion won in its home market. The firm began compiling Chinese sales figures from 2007.
“Net sales” refers to the amount of sales generated after deducting internal returns and various allowances.
The findings showed that compared to 2012, sales in China last year soared 43 percent, while numbers for South Korea contracted 22 percent. In 2012, Samsung’s sales in China stood at 28.16 trillion won, lower than the 29.18 trillion won for South Korea.
Samsung’s sales in the world’s largest market grew overall in the 2007-2013 period except for in 2011, but they rebounded in 2012, helped by the launch of products that specifically met local consumer demands.
The South Korean firm, the No. 1 mobile phone and memory chip maker, changed logo colors on some TVs and product numeric codes to reflect Chinese consumers’ preference for red and the number eight.
The company posted local sales growth of between 3-11 percent until 2012 but lost ground in 2013, mainly due to tougher domestic restrictions on mobile phone subsidies. Mobile and information technology products make up 60 percent of Samsung’s business so any negative development in this sector directly affects sales.
The latest analysis showed net sales to the Americas reaching 69.38 trillion won last year, followed by 52.67 trillion won for Europe, and 43.69 trillion won for Asia and Africa. These numbers represent gains of 19 percent, 6 percent and 21 percent, respectively, from the year before.
By region, the Americas accounted for 30 percent of Samsung’s net sales, followed by 23 percent for Europe, and 19 percent for Asia and Africa, excluding China and South Korea. China made up 18 percent of sales, with South Korea accounting for 10 percent. (Yonhap)
