Samsung Suffers Same Fate as Nokia, BlackBerry
Published By : 08 Oct 2014 | Published By : QYRESEARCH
Echoing the demise of once industry leaders Nokia and BlackBerry, Samsung Electronics seems to be facing a similar ending. Samsung’s mobile phone business has reported an abysmal 60% drop in quarterly profits, forcing market experts and analysts to compare it to rivals Nokia and BlackBerry.
The South Korean company on Tuesday declared that its operating profits for three months till September 30 were down 60% from 47 trillion won in the same period last year to 4.1 trillion won. Revenues also fell by 20%.
One of the main reasons for Samsung Electronics’ decline is stiff competition in the smartphone market. Samsung rose to fame in barely three years since its inception and dominated the global market at a massive margin. However, the company soon began to face severe challenges from every area.
Although Samsung’s smartphone launched year did good business, this year’s model Samsung Galaxy S5 has not made significant sales so far. This is primarily due to the fact that numerous domestic retailers and manufacturers in countries such as India and China have emerged. A major chunk of the smartphone demand comes from these two regions. Indian smartphone makers such as Micromax, Xolo, and Karbonn, and China’s Xiaomi, Huawei, and Lenovo have begun to attract domestic as well as international customers and have already carved a niche for themselves in the massive mobile phone industry.
As a result, Samsung’s shipments have taken a hit by over 2%, selling only 79 million units in year-on-year. This is the first time that Samsung Electronics’ sales fell year-on-year.