Samsung Raises Capital Expenditure to Improve Business

Samsung Technology

Samsung Electronics Co., which is the world’s largest producer of smartphones, makes plans in plowing piles of money in their businesses, in the hope of reducing their reliance on high-end Galaxy smartphones which still are bound to sell and peak after it was launched in experienced two years of sweltering growth. Sources say that the company’s sales have already recorded profit for the sixth straight last Friday.

Despite their remarkably spectacular sale reports, investors still are kind of disappointed since they expected Samsung to have greater sales after its Galaxy smartphones S4 which was launched last April and reached ten million total sales on the same month of its launching.

In the second quarter of this year, IDC reported that Samsung Electronics Co. delivered an estimate of 72.4 million smartphones across the globe, as compared to Apple’s 31.2 million. This is said to be an indication of how fast the company is growing in accordance to their sales, leaving all their rival companies behind. However, investors are far from satisfied since they expected more from the company. That is why this year Samsung is planning to raise their capital expenditure, in hope of strengthening and ramping up production of memory chips and its expansion.

The company, according to sources, allocated 24 trillion won (21.6 billion USD) for the capital expenditure: 6.5 trillion won for the company’s business of display panels; and 13 trillion won to semiconductors.

An analyst from Meritz Securities noted, “It’s a move to seek all-around growth and balance out what is now centered on sets,” including the mobile handsets.

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