The mobile telephone market and all that relates to new technology is highly popular with stock market investors at present. Therefore the famous names in this sector that are often quoted on the international stock markets offer generally profitable shares. This is indeed the case with Samsung Group shares that we will look at closely here with detailed and practical information that will assist you in analysing the price and rates.
About the Samsung group:
The Samsung group is originally from Korea but has developed subsidiaries throughout the world over the years particularly in Europe with Samsung France. Its activity, which generates hundreds of billions of dollars every year in turnover, is particularly related to the manufacturing and sales of electrical components and computer materials.
In recent years it has started to be active in the mobile phone industry which has enabled it to widen its range of activities and thereby generate more profits.
Samsung’s main competition:
Over the last few years, Samsung has mainly focused in the production and sale of mobile smartphones and has become number one in its business sector, beating other big manufacturers. It is therefore in this business sector that you must look for Samsung’s most dangerous competition. In order to help you carry out a comparative analysis and to open a position in the market in the best way possible way, we invite you to discover Samsung’s main competitors on the market:
- Apple manufacturer is currently ranked the second biggest mobile telephone manufacturer, holding 14.1% of market shares.
- Next comes Chinese manufacturer Huawei which holds the third place with 8.9% of market shares.
- Xiaomi ranks fourth with 4.9% of market shares.
- Finally, Lenovo is ranked fifth with 4.8% of market shares.
- Thus, Samsung remains on top with no less than 21.7% of market shares in 2016.
Samsung’s main partners:
Thanks to various partnerships, Samsung has been able to maintain a good reputation in this business sector. Here they are in further detail.
- In 2017, Samsung established a partnership with Apple for the creation of a curved screen for the next iPhone.
- In 2017, Samsung also signed a deal with Tesla regarding the design of its mobile phone’s batteries.
- In the same year, Samsung struck a deal with Google in the field of artificial intelligence.
- Finally, the company also has an extended partnership with Microsoft in the field of professional mobility which was renewed in 2017 in view of new projects.
Analysis of the Samsung share price:
When we examine the long term charts of the Samsung share price we can observe fairly stable activity over recent years. However it can be profitable to trade in this share online as it displays strong technical movements at times that enable significant profits in the short and medium term if you choose the right time.
Important stock market data relating to Samsung shares:
Although it is important to really understand the dynamics that caused the different trends observed by Samsung shares in the past such as the most influential events used in the fundamental analysis or the major technical data, it is also important to know some basic information such as the following:
- In 2017 the total stock market capital of the Samsung Group amounted to 200 billion Euros.
- The price of Samsung shares is currently quoted on the American Nasdaq All Markets stock market.
- Samsung Group shares are also included in the composition of the Nasdaq 100 American stock market Index.
- The shareholdings of the group are comprised as follows: 13.5% Samsung Electronics, 9.03% National Pension Service of Korea, 7.55% Samsung Life Insurance, 4.25% Samsung C & T Corp, 3.54% Kun-Hee Lee PhD, 1.40% the Vanguard Group, 1.32% Samsung Fire and Marine Insurance, 1.28% BlackRock, 1.24% NN Investment Partners BV and 1.13% Capital Research & Management Co.
With all this information you will now be able to complete technical analyses and precise fundamental analyses in order to determine in which direction the price of Samsung shares will move over the short and long term and thereby implement a winning strategy.
Financial and economical history of the Samsung Company:
To better interpret the different price movements that have marked the growth of the Samsung share price it is necessary to delve into the recent history of the group’s financial and economical activities and events. Here are the most important dates to remember:
- In 2011, Samsung sold its hard disc activities to Seagate Technology for 1.4 billion dollars partly in shares.
- In 2014 the group commenced the construction of a smartphone factory in Vietnam. The same year, the group announced the sale of its optical fibre subsidiary to the Corning Company for an unstated amount. It then announced the redundancy of 10,000 workers in South Korea and 9-10% of its employees in China.
- In 2016 Samsung purchased a 37.5% shareholding of Samsung Electronics in Samsung Card for 1.3 billion dollars. HP purchased, in the same year, the printing activities of the group for 1.05 billion dollars. Samsung was also ordered to pay a fine of 120 million dollars to Apple for patent violations. Other difficulties occurred following incidents caused by the Samsung Galaxy Note 7 which was recalled and sales were stopped. In November of the same year Samsung purchased the Harman Company, a specialist in audio-visual equipment integrated into cars.
By analysing how these different events have influenced the price of Samsung shares you will be in a position to better foresee the future movements of this asset on the markets.
Should you take a long term position on the Samsung share price?
If you plan to buy Samsung shares to add to your investment portfolio or take position on purchasing this asset using CFDs you are probably considering the perspectives relating to the future of this company. As you may know through the various information we have just provided, the Samsung Company has numerous advantages that will contribute to its continued prosperity and holding its position as one of the leaders in its principal activity sectors.
Although Samsung nowadays boasts a range of products that benefit from a high popularity in the public eye, nothing guarantees its continued success over the long term. The company, as with all the large groups in the technological sector, could at any time experience a decrease in esteem from the consumers. A simple problem during the launch of a product in which the company has heavily invested such as a new smartphone could in fact have dire consequences for the company’s profits, as well as its share value particularly as the Samsung share price is particularly speculative in nature.
However, the analysts’ forecasts remain generally inclined to a continued increase in the Samsung share price over the coming years. Over time, Samsung has shown itself adept at diversifying its product range and nowadays we find the brand present in various product sectors such as televisions, computers, smartphones and household electrics with a highly positive reputation overall. Samsung has in fact done everything possible to increase the popularity of their products, notably in terms of publicity campaigns using different types of media and particularly for the Galaxy range of smartphones. The company actually allocates over 30 million Euros per year to advertising.
We not that these efforts are profitable as the Samsung share price has continuously risen since the company has concentrated on the technological sector which has guaranteed it an international success.