Portfolio diversity puts Samsung on stable base

The extensive portfolio of Samsung Electronics has forced it into playing a delicate balancing act, both rivaling and partnering with Apple, Sony, HTC and other makers of digital gadgets.

Samsung, the world’s largest technology company, produces mobile phones, computers, TVs and MP3 players, and supplies their key components, from chips to display panels. 

Diversity of a level not seen in any other companies is cited as a key factor that ensures its stable income stream. But Samsung often finds itself in a dilemma due to complicated business ties. 

Samsung recently had to spurn calls from HTC to supply AM-OLED displays. Samsung is said to have run short of the much-touted display panel, which is also featured in its Galaxy S smartphones. The Taiwanese handset maker said that it would not use AM-OLED displays in some of its smartphone models.

HTC is one of the major customers for Samsung displays, but the company is its chief rival in the smartphone market. Samsung is aggressively boosting its Android-based smartphone Galaxy S in a bid to challenge HTC as the flag bearer for the Android camp. 

Samsung is increasingly facing such conflicting choices as it boosts sales of its handsets, TVs and other consumer electronics, increasing competition with its key clients for components. Samsung is the top supplier of panels and displays, as well as the top TV maker and No.2 handset vendor. 

Samsung’s business structure of making both parts and components has caused tension with its “frenemies” including Sony and Apple.