General Electric Company (GE), Apple Inc. (AAPL), Koninklijke Philips NV (ADR) (PHG): Can This Tech Giant Cross Over From Smartphones Into Health Care?

Like GE, Koninklijke Philips NV (ADR) (NYSE:PHG), and Siemens AG (ADR) (NYSE:SI), Samsung intends to use its dominant position in electronics and appliances as a springboard into the health care industry. Samsung’s strategy is to produce faster and more accurate equipment than its rivals. The company claims that its ultrasound machines can run scans faster than competing products, and its X-ray machines require the lowest dose of radiation possible.

By increasing its appeal to both medical professionals and patients, Samsung intends to gain market share as medical facilities start upgrading their devices. Last month, Samsung also expanded its health care products into Africa to establish a foothold in developing nations.

A future beyond smartphones and tablets
Although many investors compare Samsung to Apple Inc. (NASDAQ:AAPL), the two companies are very different. While Apple Inc. (NASDAQ:AAPL) relies on the iPhone and the iPad for over three-fourths of its annual sales, Samsung is far more diversified and has a strong presence in consumer electronics, home appliances, semiconductors, and telecom equipment.

Many of Samsung’s recent moves — its expansion into health care, its new smartwatch, the 16-megapixel Galaxy Zoom S4, and smart televisions — all suggest that the company realizes that sales growth of smartphones and tablets is finite as the mobile market becomes overly saturated by competitors.

Because of this, in addition to refreshing its product lines as Apple Inc. (NASDAQ:AAPL) has done repeatedly over the past two years, Samsung is looking at the bigger picture — and medical equipment could be a strong source of long-term growth.

The article Can This Tech Giant Cross Over From Smartphones Into Health Care? originally appeared on Fool.com and is written by Leo Sun.

Leo Sun owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and General Electric Company.

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