Global market and GSM Era (1998-now)

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 secured the number one position in the worldwide CDMA market where it accounted for more than 50% of market share. 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.

The first 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 Award, an award that was previously given to Nokia and Ericsson.

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

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.

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