Samsung Emerges As 2006 Market Leader, Selling The Most Digital TVs Of Any Manufacturer In The U.S.

For The First Time, Samsung Captures the Number One Unit and Dollar Share for Flat Panel TVs; Number One Unit Share for Total Digital TVs; Number One Unit Share for LCD TV; Number One Unit and Dollar Share for Flat CRT

January 30, 2007

Samsung captured the number one brand position for digital televisions in the United States in 2006, according to The NPD Group’s retail tracking service. “The industry’s overall DTV unit sales have grown 54 percent and three million more digital TVs were sold in 2006 than 2005; and within 2006, Samsung sold more digital televisions than anyone else in the industry,” said Stephen Baker, vice president of industry analysis for NPD. “Samsung is the only television manufacturer that demonstrates market strength in all four digital TV categories, which includes LCD, plasma, Microdisplay and Flat Tube. According to NPD's monthly sales data Samsung's share position improved throughout the year with Samsung leading the market in units and dollars within the second half of the year.” Samsung became America’s choice for digital TVs in 2006 with total Digital TV unit share of 20.0 percent, which is a significant lead on the competition. In addition, Samsung demonstrated strong category leadership in Flat Panel TVs with number one unit share of 21.5 percent and number one dollar share of 25.1 percent; Samsung grew its LCD market share (10” and larger) to the number one position in 2006 (from the number four position in 2005) with a market share of 15.1 percent; and its SlimFit™ line of flat tube CRT TVs claimed an overwhelming 46.1 percent unit share and a 43.7 percent dollar share in 2006, according to NPD data. Samsung is the only manufacturer that produces, and is committed to leading, in all four major digital television technologies: LCD, Microdisplay, Plasma, and Flat Tube. Strong 2006 sales across each category catapulted Samsung to the number one position. “Achieving a number one market position is a significant milestone for Samsung and we are very proud that for the first time, the American public has made us their first choice for digital televisions,” said Tim Baxter, executive vice president, consumer electronics division, Samsung Electronics America. “Samsung has demonstrated its growth to demand-brand status within the highly competitive Digital TV landscape. We attribute our success to a combination of manufacturing strength, commitment to all four digital television technologies and our leading product designs.” In the spring of 2006, Samsung revolutionized television design with the launch of its 51/52 series of LCD HDTVs', which the company nicknamed Bordeaux for its wine-glass curve at the bottom of the sets. For the first time, Samsung’s TVs offered consumers a choice of luxurious lacquer-like piano-black or smooth white-pearl exterior that not only complemented consumers’ home design but enhanced it as well. “With the launch of the 51/52 series, people no longer had to hide their TVs inside bulky, space-consuming furniture; Samsung provided them with design choices that accented their home décor,” said John Revie, senior vice president, visual display division, Samsung Electronics America. Samsung is one of the largest panel manufacturers in the world. In fact, the company consistently increases its R&D investments each year. In 2005 alone, Samsung’s R&D investments reached 5.41 trillion KRW. Recently, Samsung STI (one of Samsung’s group affiliates) expanded the capacity of its plasma development facility in Cheonan, Korea. Samsung Electronics is currently planning to open a Gen8 LCD manufacturing facility in TangJeong, Korea. Because the company designs and manufactures most of its own components, it can maintain the utmost control over production quality and manufacturing costs, giving the company a distinct market advantage. About five years ago, Samsung decided to focus its TV resources almost exclusively on its digital television product line. The company recognized that each of the four digital TV technologies brought different advantages — and price points — to consumers and it decided to invest in each of them. “Because of our manufacturing strength, we are able to bring price-competitive televisions to market while maintaining our profitability,” added Revie. “Clearly, our early decisions and investments are paying off.”

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