Samsung Chairman Asks Employees for Innovations Amid Challenges From Apple

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Samsung’s (SSNLF.PK) chairman recently told his employees that the company must “adopt new ways of thinking” and not simply concentrate on hardware in order to maintain growth, according to notes obtained by Bloomberg. Although Samsung recently posted record quarterly earnings, its share price also declined for the first time in five years.

“We have to change once again,” said Chairman Lee Kun Hee, per Bloomberg. “We must give a bigger push for innovations, including in business structure, so that we can lead industry trends.”

Samsung is Apple’s (NASDAQ:AAPL) biggest competitor in the worldwide smartphone market. According to data from market research firm Gartner, Samsung accounted for 32.1 percent of worldwide smartphone sales in the third quarter, with more than 80 million units sold. Meanwhile, Apple secured a 12.1 percent share of the global market with over 30 million units sold. However, the California-based company has also consistently taken the lion’s share of the smartphone market’s profitsApple Insider reports.

Despite Samsung’s majority share of the global smartphone market, concerns about the increasing saturation of developed smartphone markets led LIG Investment & Securities Co. to lower its predicted share price for Samsung by 7.9 percent, Bloomberg reports. The strong South Korean currency has also limited Samsung’s overseas earnings. Per Bloomberg, the Korea-based company derived approximately 85 percent of its sales from overseas markets in 2012.

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