Samsung planning record investment

18/01/2012

Samsung Planning Record Investment

The gap between Samsung and other mobile phone manufacturers is set to get wider as the conglomerate announced it is set to raise its investment to a record $41.4 billion (£26.9 billion).

Best known for making huge investments in new technologies ahead of other rivals, Samsung is set to increase its spending on mobile chips.

Analyst at NH Investment & Securities Lee Sun-tae said Samsung currently has strong cash flow as a result of record profits announced for the fourth quarter of 2011 so it is in a position to make bold bets in new technologies.

"No other IT company can beat it in terms of investment and that's how Samsung finds new revenue sources ahead of rivals and widens its gap," Sun-tae added.

Samsung Electronics announced last week that it had managed to defy the global financial outlook by recording profits of $4.5 billion for the fourth quarter of 2011, much of which was driven by the sales of smartphones.

Posted by Peter Robinson

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