Samsung Electronics bets on DVD players for the 21st century

Samsung Electronics Co., Ltd. said it will develop a
digital video disc (DVD) player as one of its strategically important items for the 21st

Samsung Electronics recently added two more models to its DVD product mix for Korean consumers, while preparing to make more than 30 disc titles every month.

Under its plan, Samsung Electronics will post US$250 million in profits this year by exporting 1 million DVD players, and represent a 20 percent share of the global market by next year.

The company will also put an additional 20 billion won into research and development
next year, while increasing production capacity by 50,000 units to 200,000 units a
month by the year 2000.

The plan will help Samsung Electronics to diversify its DVD players to 10 models and
develop optic components and core chips on its own in order to cut down on
manufacturing costs.

The global DVD market, which is virtually monopolized by Japanese companies,
including Sony Corp. and Matsushita Electric Industrial Co., Ltd., is expected to grow
rapidly, dwindling the demand for video cassette recorders.

According to market data, about 6 million DVD players will be used worldwide by
year-end, and this number will grow to 10 million units in 2000 and to 15 million units in

Samsung’s rush to DVD items is a move to defend itself against Japanese rivals as the
Korean government lifted a ban on scores of manufacturing goods made in Japan.

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