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52.2% to reach 7 million shipments in 2013. In 2014 we expect 9.6 million Samsung tablets to ship,

growing at 26% to reach 12.1 million shipments in 2015. Between 2016 and 2017 we expect an

AGR of 12.3% resulting in 2017 shipments of 16.4 million. The CAGR for the forecast period will

stand at 29%.

See Chart 4.31 and Table 4.32 for an illustration of these figures.

Source: visiongain, 2012

Year 2012 2013 2014 2015 2016 2017 CAGR

Shipments in Millions

4.6 7.0 9.6 12.1 14.6 16.4 29.0%

AGR - 52.2% 37.1% 26.0% 20.7% 12.3%

Source: visiongain, 2012

Chart 4.31: Asia Pacific Samsung Tablet Shipment Forecast 2012-2017 (Millions)

Table 4.32: Asia Pacific Samsung Tablet Shipment Forecast 2012-2017 (Millions,

AGR %, CAGR %)

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4.5.3 Middle East and Africa Samsung Mobile Handset Shipment Forecast 2012-2017

We see the Middle East and Africa as a large feature phone market for Samsung with many

underdeveloped nations seeing positive growth for low cost handsets. In 2012 32.9 million

handsets will ship growing at a rate of 27.3% to reach 41.8 million shipments in 2013. In 2014, 47.6

million handsets will ship growing at a rate of 12.5% to reach 54.4 million handsets in 2015. In

2016, 62.2 million handsets will ship growing at a rate of 14.5% to reach 71.1 million in 2017. The

CAGR for the period will be 16.6%.

See Chart 4.35 and Table 4.36 for an illustration of these figures.

Source: visiongain, 2012

Chart 4.35: Middle East and Africa Mobile Handset Shipment Forecast 2012-2017

(Millions)

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6. Expert Opinion

6.1 Samsung Electronics

In order to gain firsthand knowledge of Samsung Electronics’ operations, strategies and business

models we interviewed Andrew Kwon, Director of Marketing & Business Development. This

chapter is a transcript of that interview.

6.2 Strategies in Smartphone and Tablet Space

Visiongain: What is the Samsung strategy in the Smartphone and Tablets spaces?

Andrew Kwon: We have seen immense growth with our products in these areas, over the past

few years and believe that this growth will continue. With so many of our products using the

Android platform we have recently expanded our offerings to include Windows Phone 8 operating

system. We don’t know what kind of demand there will be for products that use the Windows

Phone 8 operating system; but we do believe that it is a great opportunity.

6.3 Regional Sales of Specific Products

Visiongain: Do any specific smartphones or tablets sell in greater volumes in specific

regions?

Andrew Kwon: The European region is the biggest for us in terms of these kinds of devices with

more than 30%-40% market share in Europe. We’re also seeing very strong growth in emerging

markets such as China and all the other emerging Asian economies. We’re gaining market share in

these areas.

Relatively speaking the US market has a very high penetration level for these devices, and also it’s

the home ground of Apple so it’s a tough situation for us. With the success of our Galaxy S3 in this

region it’s looking like we are gaining market share in the US certainly in 2012 Q3, more so than

Q2. So going forward into Q4, with the iPhone 5 coming to market we expect that this will have a

huge impact on the US market certainly in the high end space. We expect our global smartphone

sales will grow despite the new iPhone in Q4.

6.4 Samsung vs. Apple

Visiongain: Do you consider Apple to be your only competitor in the mobile space?