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Samsung Telecommunications
Samsung Telecommunications
Samsung Telecommunications
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Samsung Mobile Division is one of the five divisions within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre, and Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop computers to telecommunication network infrastructure. The headquarters is located in Suwon, South Korea.

Key Information

In 2007 Samsung Mobile Division Business reported over 40% growth and became the second largest mobile device manufacturer in the world.[2] Its market share was 14% in Q4 2007, growing up from 11.3% in Q4 2006.[3] At the end of November 2011, Samsung sold more than 300 million mobile devices which was a close second after Nokia with 300.6 million mobile devices sold in the first three quarter of 2011.[4] As of Q3 2012, Samsung is the largest manufacturer of devices running Google's Android with a 46% market share.[5]

On 19 August 2016, Samsung officially released its Samsung Galaxy Note 7. As of 2 September 2016, Samsung announced a voluntary recall and attached to the new exchange program after numerous reports showed that the new Samsung Galaxy Note 7 burst and exploded. On 10 October 2016, in response to the new incidents, Samsung announced that it would once again suspend sales of the Galaxy Note 7 and recall all devices worldwide. The next day, Samsung also announced that it would permanently discontinue the Galaxy Note 7 and stop its production.

As of October 7, comments have emerged from former CSPC experts following its launch of the investigation into the above incident.[clarification needed]

A lawsuit[citation needed],[6] filed in the US district court in California, stated that the tech malfunctions extend beyond the Galaxy Note 7 and that Samsung “chose to conceal the problem from the public despite knowing the foreseeable and predictable risk that the phone may overheat, flame and destruct from the inside presenting a risk of serious harm or injury”.

The recall had a major impact on Samsung's business in the third quarter of 2016, with the company projecting that its operating profits would be down by 33% compared to the previous quarter. Credit Suisse analysts estimated that Samsung would lose at least US$17 billion in revenue from the production and recall of the Galaxy Note 7.[citation needed]

History of Telecommunication Business

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Initial stage (1977–1993)

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In 1977 Samsung Electronics launched the Telecommunication Network, and in 1983 it initiated its mobile telecommunications business with the hope that this would become the company's future growth engine. In 1986, Samsung was able to release its first built-in car phone, the SC-100, but it was a failure due to the poor quality. In spite of unsuccessful result Ki Tae Lee, the then-head of the Wireless Development Team, decided to stay in the mobile business. He asked the company to buy ten Motorola mobile phones for benchmarking. After 2 years of R&D Samsung developed its first mobile phone (or "hand phone" in Korea), the SH-100 in 1988. It was the first mobile phone to be designed and manufactured in Korea. But the perception of mobile devices was very low and although Samsung introduced new models every year, each model sold only one or two thousand units.

Time of changes (1993–1996)

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In 1993 it was decided that the development team should focus on improving connectivity due to specific mountain topography of Korea. They found the optimal length of a mobile phone antenna and developed a method of using gold to connect the point between the antenna and the communication circuits, thus significantly reducing resistance and enabling steadier wave conductivity. They also developed the wave-searching software that was specially designed for Korea's topography.

Another event triggered Samsung's mobile phone business. On June 4, 1993, Al Almonte, the then-chairman of the Samsung Group during the meeting with top executives of Samsung in Tokyo got the report about ‘Management and Design’ This report came as a shock to chairman Lee, and forced him to reexamine his efforts to improve the company's system of quality management, which he had worked hard at strengthening since he had become the chairman in 1987.

On June 7, 1993, in Frankfurt, Lee gathered 200 Samsung executives and pointed out every problem that Samsung had and emphasized that Samsung needed a turnaround and declared a new management initiative "Samsung New Management". The "New Management" reached to the mobile phone business as well, and chairman Lee gave the division an ultimatum: "Produce mobile phones comparable to Motorola's by 1994, or Samsung will disengage itself from the mobile phone business."

In November 1993, the development team finally unveiled a new model, the SH-700. This model was quite remarkable. It weighed less than any other company's models, the design was compact, and its quality was substantially improved over previous models. Each product manufactured was tested piece-by-piece to assure perfect quality. Phones with any kind of defect were burned openly for all employees to see. (The products that had been burned were worth 15 billion won, or $188 million). The burning ceremony ingrained the motto "Quality is Pride," the essence of New Management, in every employee's mind. In October 1994, the SH-770 was introduced under the brand name "Anycall". It was a result of the marketing team's effort at brand-building. The model was an upgraded version of the SH-700, with a few changes in design and improvements in product quality. Samsung expected that branding would change customers' perception of Samsung's mobile phone and build up their trust. Aggressive marketing campaigns started as well.

At the initial stage, the most important objective of the company's marketing strategy was to break customers' preconception that Samsung's phone would be inferior to Motorola's. To market this idea of quality, Samsung developed the slogan, "Strong in Korea's unique topography." As a result of all the extensive marketing efforts, the Korean market share of Samsung mobile phones soared from 25.8 percent in October 1994, to 51.5 percent in August 1995. In the same period, Motorola's market share dropped from 52.5 percent to 42.1 percent.

CDMA era (1996–1998)

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Samsung developed its first CDMA mobile phone in March 1996, to coincide with the launch of CDMA service. The first digital handset, the SCH-100, was extra light and slim, and enabled clear voice communication. Before long, Samsung became the leader in the Personal Communications Service (PCS) market. It partnered with KTFreetel and Hansol PCS to provide PCS phones. Its first PCS phone, the SCH-1100, entered the market with innovative features, including a lightweight body, enhanced battery life, and the ability to capture delicate sounds. The design was targeted at the young generation because the young generation had emerged as a large and growing customer base. It also shifted its marketing communications strategy. For the CDMA cellular market, it emphasized the phone's new functions, for example, its voice recognition feature. For the PCS market, the company coined a new slogan, "Strong in small sounds," to emphasize the mobile phone's capability to capture delicate sounds.

By the end of 1997, one year after the CDMA service was first launched; Samsung had achieved a 57% market share in the CDMA cellular market and 58% in the PCS market. Also, in April 1997, it achieved sales of one million CDMA phone units.

Global market and GSM era (1998 on)

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Samsung made its first foray into the global market in 1996, when it exported its PCS phones to Sprint, an American CDMA carrier. Sprint signed $600 million contract with Samsung, under which Samsung would provide its PCS phones to Sprint for three years under the co-branded name Sprint-Samsung. After this Samsung expanded into Hong Kong (Huchinson, CDMA) in 1997, and Brazil (TELESP and TELERJ, CDMA) in 1998. After successfully exporting to Brazil, Samsung built a mobile phone production facility in Brazil in 1998, in the hopes of expanding into Latin America.

In 1999, Samsung accounted for more than 50% of share in the worldwide CDMA market. However, the worldwide CDMA market was far smaller than the GSM market, which accounted for 70% of the total worldwide mobile communications market. Moreover, the domestic market was approaching saturation, and competition was becoming more intense.

Thus, to achieve further growth, Samsung had to penetrate the GSM market.

First GSM phone sold with Samsung logo.
Samsung SGH-100 - first GSM phone sold with Samsung's logo and made by Dancall

The first GSM model carrying the Samsung logo was the SGH-100 made by European company Dancall (Denmark) in 1995. The first own GSM model was the SGH-200, which was made for European customers. But it was not as good as the company's CDMA phone. It was difficult to hurdle the high entry barrier, which the then "Big 3" Nokia, Motorola, and Ericsson had built for years. The company's next few models didn't attract Europeans, either. The development team realized that a simple change in the circuit system wouldn't work in the European market. Thus, it decided to look more closely at the customer's point of view. They found that Europeans preferred geometric, balanced, and simple designs. Using this information, Samsung adopted 'simple' as the design concept, then developed a new design to suit the tastes of Europeans.

The SGH-600 was born in September 1998. To market this model, Samsung changed its market entry strategy by adopting a high-end strategy. Samsung needed to escape from its low-end image. It figured that its new mobile phone, with its sophisticated design and distinguished functionality, would help it do just that. Samsung was granted the "Best Manufacturer" award twice by the Mobile News Awards, an award that was previously given to Nokia and Ericsson.

One of the new Samsung phones.
Samsung mobile S3500 cellphone. One of the phones which use the new model numbering system.

Samsung introduced its first mobile phone to India in 2004. In 2008, Samsung Electronics' Telecommunication Business declared its new business strategy focusing on consumer and marketing. Samsung mobile phones are divided into 6 major categories – Style, Infotainment, Multimedia, Connected, Essential and Business.

The SGH-P250 and SGH-J165 were the last phone models sold worldwide, outside North America, that used the original model numbering system. The GT-S7330 was the first mobile phone model to use the new model numbering system.[7]

Financial information

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In Q1 2008 Samsung shipped 46.3 million mobile handsets 1Q 2008.[8] Sales of Samsung Telecommunications were 6.65 trillion KRW for the same quarter and it represents 32% sales of Samsung Electronics. The growth is mostly explained by the continuous growth of emerging markets while there is weak demand in developed markets. During 2007 amount of shipped units was growing constantly: 1Q 2007 – 34.8, 2Q 2007 – 37.4, 3Q 2007- 42.6, 4Q 2007 – 46.3. In 2007 profit was 23,8 trillion KRW, while net profit reached a level of 2.7 trillion KRW.

Highlight products

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Mobile phones

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Samsung Blue Earth (Samsung S7550) mobile phone includes a solar panel on the back of the phone.[9]

See also

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia

Samsung Telecommunications

View on Grokipedia
from Grokipedia
Samsung Telecommunications, now operating as the IT & Mobile Communications (IM) division within Co., Ltd., is a leading global provider of mobile communication devices, network infrastructure, and advanced telecommunications solutions, encompassing everything from smartphones and wearables to and emerging technologies. Established as a core business line in the , it has evolved from early analog mobile phones to pioneering innovations in digital convergence, driving the company's position as one of the world's top manufacturers with annual smartphone shipments of approximately 230 million units as of 2025. The division's roots trace back to 1988, when Samsung launched its first independently developed during the Olympics, marking the company's entry into the sector as part of a strategic focus on electronics alongside semiconductors and home appliances. Throughout the , Samsung expanded aggressively through key partnerships, such as a landmark $500 million contract with Sprint PCS in 1999 to supply phones, and the development of the world's first TV phone with satellite (DMB) capabilities that same year. By the early , innovations like the Anycall flip phone and the first MP3-compatible mobile device solidified its market presence, transitioning from feature phones to multimedia-enabled devices amid the rise of digital mobile networks. In the modern era, Samsung Telecommunications has become synonymous with the series of smartphones, introduced in 2010, which revolutionized mobile computing through advancements in displays, biometric security, and AI integration, with the 2025 S25 series further expanding AI features like real-time translation and photo editing. The division also leads in network technologies, providing end-to-end solutions including radio access networks (RAN), core systems, and software tools that support global operators in deploying high-speed, low-latency connectivity. Looking ahead, Samsung is advancing toward with AI-native architectures for sustainable and intelligent communication systems, as outlined in its 2025 , underscoring a commitment to next-generation innovations that enhance user experiences and industry transformation, including plans to extend AI to over 400 million devices by the end of 2025.

Overview

Background and Founding

Samsung Group was founded on March 1, 1938, by in , , initially as a small named Samsung Sanghoe, dealing in dried fish, vegetables, and noodles to export to and local markets. The company expanded during the post-Korean War era, incorporating into various sectors including textiles, insurance, and securities by the 1950s, laying the groundwork for its future industrial diversification. In the 1960s, amid South Korea's push for rapid industrialization under the government's Five-Year Economic Development Plans, Samsung began venturing into manufacturing and technology, establishing in January 1969 to produce black-and-white televisions and other through licensing agreements with Japanese firms like . This move marked Samsung's entry into the electronics sector, initially focusing on assembly and import substitution to support national self-reliance in consumer goods. Samsung's foray into began in the late as part of its broadening electronics portfolio, with the formation of in 1978 to develop alongside basic communication equipment such as pagers and switchboards. This division aimed to capitalize on the growing demand for communication infrastructure in South Korea's developing economy. A pivotal early achievement came in 1980 when Samsung acquired Hanguk Jeonja Tongsin (Korea Telecommunications), a Gumi-based firm specializing in electronic switching systems, enabling the production of Korea's first domestically manufactured telephone switching systems and reducing dependence on foreign imports. However, these initial efforts faced significant challenges, including heavy reliance on imported components and technology transfers due to limited domestic R&D capabilities, as well as a primary orientation toward the domestic market shaped by South Korea's protectionist policies favoring local industry growth over immediate global competition.

Scope and Global Impact

Samsung Telecommunications, now fully integrated as the Mobile Experience (MX) business within ' Device eXperience (DX) division following the 2021 merger and reorganization, operates as a core segment alongside the company's and display units. This integration has enabled seamless synergy across hardware ecosystems, positioning telecom as a pivotal driver of Samsung's overall innovation strategy. The division focuses on end-to-end mobile communications solutions, from hardware development to network infrastructure support. In its current scope, Samsung Telecommunications maintains global leadership in network equipment, premium smartphones, and (IoT) connectivity solutions, delivering products and services to consumers and enterprises across more than 200 countries. The company's portfolio includes advanced (RAN) technologies and virtualized RAN (vRAN) systems, which have been deployed by major operators worldwide to enhance coverage and efficiency. In smartphones, Samsung dominates the premium segment with its series, while its IoT offerings, such as integration, support billions of connected devices in smart homes and industries. This broad reach underscores Samsung's role in bridging with enterprise telecom infrastructure. In 2025, Samsung emphasized AI-native architectures for sustainable networks in its white paper, enhancing its leadership in intelligent communication systems. The global impact of Samsung Telecommunications extends beyond product sales, significantly elevating South Korea's stature as a telecommunications powerhouse through substantial R&D investments and contributions. By 2025, Samsung holds market leadership in foldable smartphones with approximately 20% global share in the first half of the year, driven by innovations like the Galaxy Z Fold and Flip series, and holds thousands of 5G standard-essential patent families declared to ETSI, ranking fourth globally in declared families. These advancements have accelerated adoption globally and bolstered South Korea's export-driven economy, where Group affiliates contribute approximately 13% to national GDP as of 2024. Key metrics highlight this scale: as of Q3 2025, the DX division (encompassing telecom) accounts for roughly 56% of ' total revenue of KRW 86.1 trillion, while annual shipments exceed 230 million units, reflecting robust demand in emerging markets.

History

Early Development (1977–1993)

In 1977, the Korean government established Korea Telecommunications Co. (KTC) as a wholly owned to modernize the nation's infrastructure, focusing initially on switchboards and network equipment. Group acquired KTC in 1980, integrating it into its operations and evolving its mandate toward broader electronics and communications technologies, marking the foundational step for 's entry into the telecom sector. This acquisition allowed to leverage government-backed resources for domestic network development, emphasizing analog systems during an when global was still emerging. Samsung initiated its mobile telecommunications business in 1983, dedicating around 40 engineers to amid Korea's nascent KMTS 0G network. By 1986, this effort culminated in the release of the SC-100, Samsung's first built-in , which operated on analog frequencies and represented an early in vehicle-based mobile communication. The company relied heavily on partnerships and technology licensing from foreign firms, including U.S. and Japanese companies, to acquire know-how in analog mobile systems, enabling without fully independent at the outset. In 1988, coinciding with the Olympics, launched the SH-100, South Korea's first domestically developed and only the third such device globally produced independently. Weighing approximately 520 grams and featuring a basic analog design for voice calls, the SH-100 targeted urban professionals and symbolized 's growing domestic market presence, though production was limited to meet initial demand. By 1991, Samsung shifted toward digital mobile communications research, collaborating with Qualcomm to explore code-division multiple access (CDMA) technology as part of South Korea's national push for advanced cellular standards. This initiative laid the groundwork for transitioning from analog to digital systems, positioning Samsung to contribute to Korea's eventual commercialization of CDMA infrastructure in the mid-1990s while building internal expertise in spread-spectrum modulation.

Transition and Domestic Growth (1993–1998)

In 1993, Samsung's telecommunications division underwent a strategic transition, emphasizing the development of Personal Communication Services (PCS) amid South Korea's evolving regulatory landscape for mobile communications. This shift built on the analog foundations established in prior years and positioned the division to capitalize on impending PCS licenses, which the government awarded in 1994 to foster domestic competition and technological self-reliance. Concurrently, Samsung debuted the Anycall brand with the launch of the SH-700, an ultra-lightweight weighing just 100 grams, featuring a self-developed antenna that set new standards for portability in the Korean market. The SH-700 quickly gained traction, selling 6,000 units per month initially and propelling Samsung to the top of the domestic mobile phone market by April 1994, with monthly sales reaching 16,000 units. By 1995, Samsung introduced its first digital mobile phone, advancing toward the nationwide adoption of digital standards amid government initiatives to promote indigenous technologies. This development aligned with South Korea's Electronics Industry Promotion Act, which prioritized communications R&D and mandated the use of domestically produced equipment for new mobile services. The government's commitment to CDMA as the national standard, declared in 1993, accelerated this transition by funding approximately 70% of a large-scale national R&D project involving , , and the Electronics and Telecommunications Research Institute (ETRI). These efforts reduced reliance on foreign technologies and prepared the for digital rollout. The pivotal moment came in 1996 with the commercial launch of CDMA-based mobile phones in Korea, coinciding with the world's first large-scale CDMA service rollout by . Samsung's SCH-100, a dual-mode supporting both analog and CDMA, played a central role in this debut, enabling seamless migration to digital networks. By the end of 1997, Samsung had captured 57% of the CDMA cellular market and 58% of the PCS segment, reflecting robust domestic growth as PCS providers like Shinsegi Telecom entered the fray in 1996–1997. This dominance solidified by 1998, with Samsung holding approximately 50% overall in Korea's mobile sector, driven by affordable, high-quality s that met surging demand—subscriber numbers surged from 5 million in 1997 to 10 million in 1998. Throughout this period, Samsung faced intense competition from (formerly ) and operators like , which together challenged the market through aggressive pricing and service expansions following the 1994 liberalization of PCS licenses. The government's push for domestic standards, including requirements for Korean-made CDMA equipment, intensified this rivalry by favoring local chaebols while spurring innovation to counter imports. Despite these pressures, Samsung's focus on quality improvements—exemplified by the Anycall series' user-friendly designs—enabled it to consolidate its position, transforming challenges into opportunities for market leadership in South Korea's burgeoning digital telecom ecosystem.

International Expansion (1998–2010)

During the late , Samsung Telecommunications marked its entry into international markets by launching the SGH-600, a 95-gram Phase 2-compatible phone that facilitated expansion into Europe's networks and key Asian markets. This move diversified Samsung's offerings beyond its domestic CDMA base in , where it had already established leadership. In the same year, the company initiated its first international CDMA exports to , securing early footholds in emerging Asian infrastructure. The early 2000s saw Samsung accelerate its global adoption of diverse mobile standards, launching the world's first GPRS and EDGE-enabled phones in 2000 to support enhanced data services in GSM-dominated regions. By 2003, Samsung introduced support with the Z100, its first handset, enabling high-speed in European and other W-CDMA markets. Throughout the mid-2000s, Samsung's flip phone designs, such as the popular SGH-E700 series, dominated international sales, capturing significant share in feature phone segments across , , and the due to their compact form and multimedia capabilities. To strengthen its position in the United States, Samsung formed strategic partnerships with carriers like Verizon, supplying CDMA-based handsets and contributing to network equipment deployments that boosted its North American presence. Concurrently, the company established overseas R&D centers, including expansions in by 2003 for and telecom development, and facilities in the and to localize innovation and adapt products to regional standards. These initiatives supported Samsung's pivot toward smartphones, culminating in the 2009 introduction of the series—the GT-I7500, its first Android-powered device—which integrated touchscreens and app ecosystems to compete in global markets. By 2010, the lineup drove rapid growth, with Samsung's mobile shipments reaching 280 million units worldwide, surpassing Nokia's dominance in several emerging regions like parts of and through aggressive pricing and feature-rich devices. This period solidified Samsung's transition from a regional player to a global leader, emphasizing multi-standard compatibility and localized strategies.

Modern Innovations and Challenges (2010–present)

In the 2010s, established leadership in 4G LTE technology by launching the world's first LTE-enabled , the Samsung Craft, in September 2010 through a partnership with U.S. carrier MetroPCS. This milestone accelerated 's push into high-speed , with the company deploying the first commercial LTE network in later that year and securing multiple global contracts for LTE infrastructure. The S series evolved significantly during this decade, introducing innovations such as Super AMOLED displays in the original S (2010), which offered vibrant colors and energy efficiency; multi-core processors starting with the S II (2011) for enhanced performance; and advanced camera systems, including optical in the S6 (2015). These advancements helped capture a substantial share of the premium market, with the series emphasizing seamless integration of hardware and software. However, the decade faced a major setback with the Note 7 launch in August 2016, when battery defects caused overheating and fires, leading to a global recall of 2.5 million units by October 2016 after 96 incidents reported in the U.S. alone. 's investigation confirmed flaws as the root cause, prompting stricter quality controls and a temporary halt in production. Entering the 2020s, Samsung commercialized technology prominently, shipping over 6.7 million 5G-enabled Galaxy smartphones globally in 2019, including the Galaxy S10 as one of the first commercial 5G devices launched with Verizon in the U.S. This positioned Samsung as a key player in 5G rollout, supporting network deployments with carriers like Sprint for commercial services in cities such as . The company further innovated in foldable devices with the Galaxy Fold debut in September 2019, featuring a 7.3-inch flexible Dynamic display that unfolded like a book, marking the start of the Galaxy Z series. Subsequent models, such as the Galaxy Z Fold2 (2020) and beyond, refined durability with improved hinges and water resistance, expanding the form factor's appeal for multitasking and media consumption. By 2025, Samsung integrated AI deeply into its devices through Galaxy AI, offering features like real-time translation, photo editing, and personalized health insights on models including the Galaxy S25 series, with free access until the end of the year and plans to reach 400 million devices globally. Samsung encountered significant challenges amid geopolitical and regulatory pressures. US-China trade tensions from the late 2010s onward disrupted supply chains, prompting Samsung to reduce reliance on Chinese manufacturing—dropping outsourced smartphone production there to under 25% by 2022—and diversify to and while facing higher costs from tariffs on components like semiconductors. In , antitrust scrutiny intensified, with the Italian Competition Authority fining Samsung €5 million in October 2018 for unfair commercial practices related to software updates that allegedly shortened device lifespans, a case tied to "" concerns. As of 2025, maintained dominance in the premium Android market, holding approximately 21% global share in the high-end segment driven by the Galaxy S25 series and foldables, amid a record high for premium sales in the first half of the year. The company expanded into satellite communication technology, integrating support for emergency messaging and calls via partnerships with Verizon and Skylo on devices like the Galaxy S25 series and Galaxy Z Fold7, enabling connectivity in remote areas without cellular or coverage.

Organizational Structure

Key Divisions and Subsidiaries

Samsung's telecommunications activities are primarily housed within the Device eXperience (DX) division of , which encompasses the Mobile Communications Business responsible for smartphones, network systems, and related . This structure emerged from a 2021 reorganization that merged the previous IT & Mobile Communications () and (CE) divisions to streamline operations and enhance synergies in device innovation and connectivity solutions. The DX division, as of 2025, continues to drive advancements, integrating mobile hardware with emerging network technologies to support global 5G deployments and beyond. Key subsidiaries bolster these efforts, including Samsung Networks, a specialized unit within the DX division focused on (RAN) solutions such as base stations for and networks. Samsung Networks provides end-to-end infrastructure, including massive radios, core equipment, and AI-optimized services, having pioneered mmWave commercialization and supplied over 53,000 base stations to operators worldwide by 2019. Another significant subsidiary is , acquired by in March 2017 for approximately $8 billion to strengthen audio technologies and automotive connectivity integral to ecosystems. Harman's expertise in systems and premium audio enhances Samsung's mobile and network offerings, particularly in (V2X) communications. The Device Solutions (DS) division supports telecommunications through its development of s and system-on-chip (SoC) technologies, including the series s that enable sub-6GHz and mmWave connectivity in s. These components, such as the Exynos Modem 5400, integrate non-terrestrial network (NTN) support for communications and are produced using advanced processes like 4LPE for high-speed data transfer up to 14.79 Gbps. Regional subsidiaries facilitate localized operations, exemplified by Samsung Telecommunications America (STA), established in 1992 to handle U.S. sales, research, and network partnerships from its Richardson, Texas headquarters. Other entities, such as Tianjin Samsung Telecom Technology Co., Ltd. (90% owned), manufacture communication equipment in , while TeleWorld Solutions (100% owned) specializes in network deployment and optimization across the . Over time, Samsung's telecommunications structure has evolved from a standalone entity—originally founded in 1977 as Telecommunication Network—to full integration within Samsung Electronics following key mergers, including the 1988 consolidation with Samsung Semiconductor & Telecommunications. This progression culminated in the 2021 DX formation and persists through 2025, emphasizing unified innovation across mobile, networks, and device components to adapt to AI-driven and 6G-era demands.

Operations and Workforce

Samsung Telecommunications operates a vast global manufacturing network, with key facilities concentrated in , , and to support the production of mobile devices and network equipment. serves as the primary hub, accounting for the majority of manufacturing, including approximately 120 million units annually from factories in Bac Ninh and Thai Nguyen. In , six sites under the Device eXperience (DX) Division, such as those in Giheung and Hwaseong, handle advanced assembly and testing for telecom products. contributes through facilities in and , where production has expanded to mitigate risks, including shifts from amid U.S. tariffs. Overall, the DX Division maintains 27 manufacturing sites worldwide, enabling efficient scaling for telecom hardware. Vertical integration enhances operational efficiency through Samsung's in-house fabrication, with facilities like those in , , and , producing chips essential for telecom devices, including modems and processors. This strategy allows control over critical components, reducing dependency on external suppliers and optimizing production for products like Galaxy smartphones. The supply chain emphasizes strategic partnerships, notably with , which supplies modems for about 75% of Samsung's smartphones as of 2025, powering advanced connectivity in models like the S25 series. Sustainability initiatives integrate recycled materials into devices, with all products since 2022 incorporating such elements, and 31% of plastic components in DX Division products using recycled plastics in 2024. Samsung manages a network of 2,503 global suppliers, with 92% evaluated for compliance and 75% achieving outstanding ratings under standards aligned with the Responsible Business Alliance. The workforce comprises approximately 263,000 employees globally as of 2024, with over 105,000 dedicated to roles across telecom-related operations in the DX Division. To build expertise, invests in training programs, including the SW·AI Academy, which provided AI to 2,200 youth in 2024 with a budget of KRW 37.5 billion, and company-wide upskilling in AI and averaging 66.8 hours per employee. While specific workforce training is emerging through internships, broader efforts focus on AI integration for future telecom technologies. Operational scale is underscored by an annual R&D of approximately $24.1 billion in 2025, supporting telecom innovations across 40 global centers. Complementing this, Samsung maintains 24/7 expert support through 12,925 service centers in 217 countries, ensuring round-the-clock assistance for telecom products via phone, chat, and remote diagnostics.

Products and Services

Mobile Devices

Samsung's mobile devices division primarily focuses on consumer-oriented smartphones and wearables under the brand, emphasizing premium hardware, innovative form factors, and seamless integration with Android ecosystem services. The portfolio caters to diverse market segments, from high-end flagships to affordable mid-range options, positioning as a dominant player in the global market with a 20% share in Q2 2025, driven by strong performance in both traditional slab phones and emerging foldables. The Galaxy S series represents Samsung's flagship lineup, launched annually since 2010 with the original Galaxy S, which featured a groundbreaking Super display and set the stage for Android premium devices. Subsequent models, such as the Galaxy S II in 2011 and the S24 series in 2024, have iteratively advanced camera systems, processors, and battery life, establishing the series as a benchmark for mobile innovation and consistently leading in sales within the Android segment. By 2025, the Galaxy S25 series continues this tradition, incorporating advanced AI features for enhanced photography and productivity. Complementing the S series, the Galaxy Z lineup introduced foldable s in 2019 with the Galaxy Fold and Z Flip, pioneering flexible displays that combine smartphone portability with tablet-like multitasking. Models like the Galaxy Z Fold7 and Z Flip7 in 2025 have refined mechanisms and , with the Z Fold7 and Z Flip7 achieving record-high sell-through rates in Q3 2025, helping regain momentum in the global foldable market following a competitive Q2 where global shipments rose 45% year-over-year, led by brands like . The Z series accounts for a growing portion of premium device sales, appealing to users seeking versatile form factors for and media consumption. For mid-range consumers, particularly in emerging markets, the Galaxy A series offers value-driven smartphones with robust features like 5G connectivity and capable cameras at accessible price points, targeting students and young professionals in regions such as and . Devices like the Galaxy A55 and A35 emphasize long battery life and expandable storage, contributing significantly to Samsung's volume sales in budget-conscious segments. Samsung's wearable ecosystem, led by the Galaxy Watch series since its debut in 2018, integrates and fitness tracking into daily routines, featuring advanced sensors for monitoring, sleep analysis, and ECG functionality approved by regulatory bodies. The Galaxy Watch7 and Watch Ultra models in 2025 expand on these with AI-powered insights for personalized wellness, such as energy score assessments and irregular heart rhythm notifications, enhancing user management. Key innovations in Samsung's mobile devices include the under-display camera introduced in the Galaxy Z Fold3 in 2021, which hides the front-facing lens beneath the screen for an uninterrupted display experience, though later models like the Z Fold7 opted for punch-hole designs to improve image quality. Additionally, Samsung DeX enables desktop-like productivity by connecting Galaxy phones to external monitors, keyboards, and mice, transforming mobile devices into workstations for tasks like document editing and video conferencing. All Galaxy mobile devices run exclusively on the Android operating system, customized through Samsung's One UI skin, which offers intuitive navigation, extensive theming options, and deep integration with Galaxy ecosystem features for a cohesive user experience.

Network Infrastructure

Samsung's network infrastructure focuses on providing business-to-business telecommunications hardware, particularly for 5G and beyond, enabling carriers to build robust radio access networks (RAN) and core systems. The company offers end-to-end solutions, including virtualized RAN (vRAN), which has been commercially deployed since 2018 to support flexible, software-based architectures that reduce hardware dependencies and enhance scalability for operators. By 2025, Samsung has established leadership in Open RAN, recognized as the global leader in both vRAN and Open RAN segments for 2024, with deployments supporting multi-vendor and AI integration for optimized performance. Key products in Samsung's portfolio include advanced base stations equipped with massive technology for high-capacity coverage and designed for dense urban environments, alongside core network technologies that manage traffic routing and service delivery. These solutions have been adopted by major operators such as Verizon, which integrated Samsung's equipment for early trials and subsequent commercial networks, and , which utilizes Samsung's base stations for AI-optimized deployments in high-traffic areas like subways. Samsung's core network tech supports standalone architectures, enabling seamless and low-latency services for these carriers. Significant milestones include Samsung securing its first 5G network contract in 2017 with Verizon for customer trials across multiple U.S. cities, marking an early step in commercial 5G infrastructure rollout. By 2025, the company expanded into prototypes, unveiling a outlining AI-native designs and establishing an AI-RAN lab to develop intelligent base stations with features like zero-trust architecture and joint source-channel coding prototypes. Globally, Samsung has deployed numerous sites worldwide, including over 53,000 commercial vRAN sites as of early 2025, powering commercial traffic for various operators and emphasizing energy-efficient designs such as chipset-integrated in massive radios and AI-driven energy saving managers that dynamically adjust resources based on traffic patterns to significantly reduce power consumption compared to previous generations. These designs incorporate AI-driven energy saving managers that dynamically adjust resources based on traffic patterns, supporting sustainable network operations.

Emerging Technologies and Services

, introduced in 2013, is a multi-layered security platform integrated into Samsung's mobile devices to provide defense-grade protection from the hardware level through the operating system and applications. It employs hardware-rooted trust mechanisms, such as secure boot and real-time kernel protection, to safeguard sensitive data against and unauthorized access. Over the years, Knox has expanded to include cloud-based management tools and ecosystem-wide security features like Knox Matrix, launched in 2023, which enables interconnected devices to monitor and protect each other in real time. Bixby, Samsung's AI-powered , debuted in 2017 alongside the S8 , offering voice-activated controls, contextual awareness, and integration with device features to simplify user interactions. Since its launch, Bixby has evolved through updates, including enhanced in 2023 and improved command comprehension for smart home appliances in 2024, positioning it as a core component of Samsung's AI ecosystem. In the IoT domain, Samsung acquired in 2014, establishing it as an for connecting and managing smart home devices across ecosystems. facilitates interoperability with thousands of third-party devices, enabling users to automate routines and control appliances via a unified app, while emphasizing privacy through . Samsung has advanced satellite connectivity services with the Galaxy S25 series, released in early 2025, which supports non-terrestrial network (NTN) integration for messaging in areas without cellular coverage. This feature, powered by Skylo's direct-to-device satellite technology and initially available on Verizon networks, allows users to send texts and location data, enhancing safety for remote users. It integrates seamlessly with Android 15, providing a native experience without additional hardware modifications. For enterprise cloud solutions, Samsung offers services through its SDS division, deploying on-site edge clouds to address latency, security, and regulatory challenges in industries like and healthcare. These solutions process closer to the source, reducing bandwidth needs and enabling real-time , as demonstrated in collaborations with for 5G-enabled edge networks. Samsung's partnership with (AWS), deepened in 2024, focuses on deployed on public cloud infrastructure to deliver customized, virtualized connectivity for enterprises. This collaboration enables dynamic allocation of network resources for specific use cases, such as low-latency slicing for autonomous vehicles, and was showcased at 2024 with end-to-end virtual RAN demonstrations. In 2025, it extended to AI-driven network optimization tools like CognitiV NOS Copilot on AWS, simplifying management of complex radio access networks. Looking toward future communications, Samsung Research has piloted quantum-secure technologies by 2025, incorporating (PQC) into devices like the Galaxy S25 to protect against threats. These efforts include research on (QKD) standards for secure data transmission over networks, aiming to integrate quantum-resistant encryption into architectures.

Research and Development

Innovation Milestones

Samsung Telecommunications has marked several pioneering achievements in mobile communication technologies throughout its history. In 1996, the company commercialized the world's first CDMA digital mobile phone, the SCH-100, which utilized technology to enable more efficient wireless voice and data transmission compared to earlier analog systems. This breakthrough laid the foundation for modern digital cellular networks and helped establish Samsung as a key player in global standards. Entering the 2000s, Samsung advanced mobile memory capabilities with the development of the world's first 1Gb mobile DRAM in 2006, enabling higher storage capacities in handheld devices and supporting the growth of multimedia features like cameras and music players. This innovation, produced using an 80nm process for mobile DDR2 DRAM, significantly boosted device performance and paved the way for more sophisticated smartphones. The 2010s saw Samsung lead in display technologies with the introduction of the world's first commercialized full HD Super AMOLED in the Galaxy Round in 2013, featuring a curved screen that enhanced and immersion for users. Building on this, in 2019, Samsung launched the Galaxy S10 , recognized as the company's first 5G-enabled and one of the earliest commercially available devices to support fifth-generation networks, offering speeds up to 20 times faster than for improved streaming and connectivity. In the 2020s, Samsung continued to innovate in foldable device materials by developing Ultra Thin Glass (UTG) at approximately 30μm thickness, first applied in the in 2020, which provided greater durability and flexibility while reducing the crease visibility in devices like the Galaxy Z series. By 2024, the company integrated AI-powered real-time translation features into its Galaxy devices with the Galaxy S24 series, such as Live Translate, enabling on-device voice and text conversions across multiple languages during calls and conversations without requiring connectivity. In November 2025, Samsung announced the Vision AI Companion, enhancing Live Translate for real-time translation in conversational AI applications for household devices. These milestones underscore Samsung's broader impact in , where the company filed over 9,300 patents in the United States alone in 2024, with a substantial portion dedicated to telecom advancements like , AI integration, and display technologies, reflecting its annual output exceeding 10,000 global filings by 2025.

Patents and Collaborations

Samsung has maintained a position in standard-essential patents (SEPs), ranking first in SEP shares according to a 2025 essentiality study by IPlytics that evaluated contributions to standards. This dominance is reflected in Samsung's extensive declarations to the European Telecommunications Standards Institute (ETSI), where it holds one of the largest portfolios among contributors, supporting its role in defining protocols for enhanced , ultra-reliable low-latency communications, and massive machine-type communications. Analyses of established SEP families as of 2025 place Samsung third globally with approximately 8.5% share, underscoring its strategic focus on high-essentiality inventions critical to network infrastructure and device interoperability. Key collaborations have bolstered Samsung's telecommunications advancements, particularly in software and hardware integration. With Google, Samsung maintains a long-term partnership to customize the Android operating system, enabling tailored user experiences through interfaces like One UI while ensuring seamless compatibility with Google services such as Google Home and RCS messaging. This alliance extends to enterprise solutions, harmonizing Samsung Knox security with Android Enterprise for managed device deployments. In modem technologies, Samsung collaborates with Qualcomm to incorporate Snapdragon modems into Galaxy devices, complementing its in-house Exynos processors and enhancing 5G performance across global markets through multi-year supply agreements. Samsung's intellectual property strategy emphasizes SEP licensing to generate revenue and foster industry-wide adoption, with agreements covering billions in value over multi-year terms; for instance, its portfolio supports cross-licensing that mitigates infringement risks while enabling fair, reasonable, and non-discriminatory (FRAND) terms for global implementers. Complementing this, Samsung pursues defensive patent acquisitions to fortify its position against litigation, such as obtaining broad licenses to Intel's semiconductor patent portfolio in 2025 to cover advanced fabrication and integration technologies essential for telecom hardware. Looking ahead, engages in joint 6G research through collaborations with academic institutions and government bodies. In partnership with the , supports talent development and R&D in semiconductors and next-generation networks, aligning with national efforts to pioneer innovations like AI-native architectures. Additionally, under South Korea's R&D implementation plan led by the Ministry of Science and ICT, contributes to key technology development targeting commercialization by 2030, focusing on secure, open, and resilient systems in coordination with international principles endorsed by governments including the .

Financial Performance

Samsung's telecommunications operations, primarily through its Mobile eXperience (MX) and Networks businesses within the Device eXperience (DX) division, have exhibited robust revenue growth since the early 2000s. In 2000, the company's overall revenue stood at approximately $26 billion, with the information and telecommunications equipment segment (including mobile) contributing about 22% or ~$5.7 billion as Samsung expanded its handset portfolio amid rising global demand for feature phones. By 2024, MX and Networks revenues had reached KRW 117.3 trillion (approximately $86 billion), fueled by the proliferation of smartphones, 5G infrastructure deployments, and diversified services, representing a key pillar of Samsung Electronics' total annual revenue of $220.8 billion. Profitability reached a peak in 2022, benefiting from the global rollout, which boosted sales of compatible devices and network equipment. The DX division reported operating profits of 43.38 trillion for the year, with the MX segment alone driving significant gains through premium smartphones that accounted for nearly half of all mobile shipments. This era marked a high point before a temporary slowdown in 2023 due to market saturation in early markets. A major setback occurred in 2016 with the Galaxy Note 7 , resulting from battery defects that led to fires and explosions, causing an estimated $5.3 billion negative impact on operating profit through production halts, replacements, and . The company discontinued the device entirely, absorbing costs of approximately 5 trillion in the fourth quarter of 2016 and first quarter of 2017. Recovery accelerated from 2021 onward, propelled by the Galaxy Z foldable series, which contributed to stabilizing MX revenues amid broader premium device demand. By , telecom revenues were dominated by mobile devices in the business (~97%), with network infrastructure contributing a small portion (~3%). This structure underscores the business's dominance, with devices like AI-enhanced smartphones forming the core. In the third quarter of , consolidated revenue rose 8.8% year-over-year to 86.1 trillion , with and Networks generating 34.1 trillion , largely attributed to AI features in flagship handsets that drove premium segment upgrades.

Market Share and Investments

Samsung maintains a leading position in the global market, capturing approximately 19% share in the third quarter of 2025, ahead of Apple's 18.2%. This positions the company as the top vendor by shipments, with 60.6 million units sold during that period, driven by strong performance in the A and S series. In the infrastructure segment, holds a notable role in (RAN) equipment, particularly as the global leader in Open RAN and virtualized RAN (vRAN) markets, though its overall RAN market share stands at around 4.8% as of 2024, with continued positioning in regions like and . The company's investment strategy emphasizes heavy in semiconductors and next-generation technologies to sustain its telecommunications edge. In 2024, Samsung allocated KRW 53.6 trillion (approximately $39.7 billion) to capex, with KRW 46.3 trillion directed toward the Device Solutions division for advanced fabrication facilities and R&D in areas like . This includes ongoing collaborations, such as with in 2025, to develop AI-integrated multi-antenna technologies for signal enhancement in the 7 GHz band. Additionally, strategic acquisitions like in 2016 have supported infrastructure expansion relevant to telecom services. Samsung's market approach prioritizes the premium segment through innovations in foldable devices and AI features in the Galaxy Z and S lines, aiming to boost average selling prices and loyalty in high-end markets. Simultaneously, it pursues growth in emerging economies, leading the premium mobile segment in during Q2 2025 and benefiting from 25% shipment growth in in Q3 2025. These efforts leverage affordable mid-range models to penetrate regions like and , where revenue rose 14% year-over-year. A key risk for involves its manufacturing dependency on , where roughly 40% of NAND flash production occurs at facilities like the plant, exposing it to geopolitical tensions and U.S. export restrictions tightened in 2025. Post-2020 U.S.- trade escalations prompted mitigation measures, including diversification of supply chains and exemptions for continued operations, though recent policy shifts have increased scrutiny on such dependencies.

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