Could Samsung Electronics’ Sale of Shares in Four Companies Impact its Sell online electronics Business?

Advances in technology and discovery of cheaper sources of energy have skyrocketed demand for electronic devices. Today, electronics products like home appliances (refrigerators, freezers, electric oven e.t.c.), entertainment gadgets (TVs, DVD players, remote controls, iPods e.t.c.), communication devices (cell phones, email-enabled laptops), and home-office electronics (pepper shredders, desktop computers, printers e.t.c.) that majority of the population could not afford a long time ago, are basics in today’s homes. These electronic products are now able to be sold online, thanks to the explosion of eCommerce platforms. Today, you can order any sell online electronic product in the comfort of your home, and it’s delivered right to your doorstep.

  • The biggest sell online electronics brand

Samsung group, a South Korea conglomerate, produces most of the electronic goods found on most eCommerce platforms online. They also have their own Samsung shop where you can buy and ship your consignment to any part of the world. The company has been able to stay afloat for this long due to constant innovation of new products that make customers’ lives easier. Their line of Smartphones bites the biggest share of mobile phone market, and this trend is predicted to continue for many years.

  • Announcement of sale of shares in four companies

In 2016, Samsung announced the sale of shares it held in 4 companies, including ASML Holding NV, Seagate Technology Plc, Sharp Corp and Rambus Inc. The share sale raised over 1 trillion won ($888.9m; £681m). The sale coincided with the recalling of Galaxy Note 7 Smartphone due to reports of fires instigated by faulty batteries. Regulators in the United ordered the Samsung Galaxy Note 7 recall and Samsung, in a statement, said that the problem affected over 2.5 million devices in the world, with the United States accounting for one million devices. Experts projected that the recall would, in the long run, cost the company more than $1 billion.

  • Streamlining management in its operations to beef up both sell online electronics and offline sales

Samsung group auctioned off half of its 3% share in ASML, and its entire share in three other companies. The company cited the need for streamlined management for the sale of its shares in the 4 companies. The stakes in the other three companies included Rambus (4.5%), Seagate (4.2%) and sharp (0.7%). Samsung group ordered this sale to accumulate cash to fund its main function: Innovation of cutting-edge Smartphones and semiconductors. The company noted that innovative electronic products are the main drivers of the market in this age and they had to funnel more money to that area.

  • Samsung’s recovery after the share sale and the Note 7 issue could boost its sell online electronics business

In September 2016, Samsung reported recovery (38.8% up) after more than $14 billion was wiped off its value. Analysts announced that despite the massive share sale and the Note 7 recall, customers did not leave the brand. In fact, online sales have increased 2-fold. This is attributed to the innovative capabilities of Samsung, and more so, the release of the Galaxy S7 and S7 edge, which took the market by storm.

  • Sale of printer business to HP

In the same month, Samsung announced the sale of its printer business to a tune of $1 billion. Analysts thought that the move was informed by the need for the company to streamline its business operations and train their sights on lucrative areas like Smartphones and semiconductors.

Conclusion

Looking to the future, Samsung is clearing a path for continuous and explosive growth through brave and timely investments in main areas by venturing into new future businesses. They are also injecting more cash to expand online sales through various online stores. These new businesses and ventures call for strategic decisions hinging on long-term vision. This move, according to analysts, could bring a whole lot of stability to the top-level management. Samsung is also looking to expand its sell online electronics businesses since more consumers now prefer to buy and sell their products online.

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