With the smartphone market shrinking, Samsung has been feeling the pinch. Profits for the 3rd quarter were the worst in three years (49% drop), and it can only continue to deteriorate unless drastic changes are made. Apple introduced iPhones with bigger displays, which was probably the biggest differentiating factor for the past couple of years. That, and the fact that cheaper phones were being launched in India and China, have made it difficult for the Korean tech giant.
During an earnings conference call, Samsung investor relations head Robert Yi said they were “not quick enough” to the changing market conditions. Now they seek more efficiency in their product portfolio, which can be translated to a lower number of handsets. Samsung has always offered more handsets than any company, but that needs to be changed immediately.
Now it isn’t all doom and gloom for Samsung as they are still the leading global smartphone manufacturer. However, in looking at the top 5 manufacturers, all but Samsung showed at least 15% growth. Those companies were Apple, Xiaomi, Lenovo, and LG. Samsung can still make the changes necessary to retain the top, but they will have to move fast.
If Samsung put the majority of their concentration on the Galaxy S series, Note series, and only one or two budget devices, they might be able to reverse the course. However, it’s going to take more innovation. It’s a proven fact that the majority of consumers don’t care about their proprietary software. Samsung’s rise to the top was due to heavy marketing, but they also capitalized on the fact that Apple was so behind in making phones with larger displays. With that advantage gone, Samsung is going to need to create devices that will force consumers to stick with them. They can do it. Look at the Galaxy Note 4. It’s is one of the best phones of the year. Keep making devices like that, and they have a shot at staying at the top of the mountain.
source: The Guardian
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