Menu
Matt Damon is Jason Bourne Again

Matt Damon is Jason Bourne Again

Galaxy Note 4 Screen is the World's Best

Galaxy Note 4 Screen is the World's Best

Iggy Azalea Sex Tape Controversy Heats Up

Iggy Azalea Sex Tape Controversy Heats Up

Paris Hilton just bought the Cutest and Smallest Dog

Paris Hilton just bought the Cutest and Smallest Dog

Kim Kardashian Flames Media about Kanye West Attack

Kim Kardashian Flames Media about Kanye West Attack

Samsung battles on two fronts as Apple readies iPhone 6

Jul 16 2014, 11:04am CDT | by , in News | Other Stuff

Samsung last week gave second-quarter earnings guidance that was far weaker than expectations and is on track for its worst quarterly profit in two years

Samsung battles on two fronts as Apple readies iPhone 6
 
 

YouTube Videos Comments

Full Story

Samsung battles on two fronts as Apple readies iPhone 6

While some of us might fail to believe that Samsung is losing its ground in the mobile industry, it is true that it is facing a downwards bump because of the cheaper Chinese alternatives and its biggest rival Apple. Samsung’s second-quarter earnings guidance was revealed last week and it wasn’t as the company had expected; the financial results appeared to be weaker than before. The price competition and higher inventory levels in China have driven down the profits for the South Korean tech giant.

According to research firm Counterpoint's survey of 35 markets which account for 90 percent of the global sales, it was found that the sales for the eight-month-old iPhone 5s stood at 7 million in May while Samsung had 5 million for their flagship Galaxy S5. However, after a March release, the S5 was only in its second month of sales. The survey also revealed that the S5 hasn’t been doing so well for Samsung as compared to the success of the S4 in its early months. We can say that the results of this survey were quite reliable since the data measure retailers' sales to consumers as opposed to typical industry data that look at shipments made by the manufacturer.

Tom Kang, a Seoul-based analyst for Counterpoint pointed out that in June the sales for the Galaxy S5 remained at 5 million units and it this can be attributed to the fact that it didn’t quite meet the expectations regarding display and the outer case. "They made one mistake, one product that didn't hold up to expectations and they are paying the price," he said in a phone interview. "They will have to move forward and leave behind what has failed and focus on the next product."

Apart from the inventory buildup, Samsung is facing other major problems too. Samsung provided no shipment figures and also remained silent on the Counterpoint data. "We will strengthen our product competitiveness by reinforcing our premium brand reputation, powerful product line-up, and cutting-edge technology," the company said in an email statement on Wednesday.

According to a research firm Canalys, Samsung also lost its market share in the first quarter of 2014 when it fell to 18 percent from 20 percent a year earlier. On the other hand, companies such as China's Xiaomi and Lenovo were making gains. The analysts are saying that the answer to this sudden downfall is Samsung’s own fault since they couldn’t keep the S5 as exciting as the consumers had wished for. It just didn’t offer enough to encourage customers to spend more for it.

"Most major smartphone brands worldwide are battling brand fatigue at the moment," said Strategy Analytics analyst Neil Mawston. "Consumers love their smartphones but almost all hardware, software and apps now look, feel or cost the same."

As opposed to Samsung, Apple is having no problems in charging premium prices from their customers who are willing to pay for the apple experience.

source: reuters

 

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/32" rel="author">Ahmed Humayun</a>
Ahmed Humayun is a technology journalist bringing you the hottest tech stories of the day.

 

 

Comments

blog comments powered by Disqus

Latest stories

Major NFL Sponsors Displeased With Recent NFL Actions
Major NFL Sponsors Displeased With Recent NFL Actions
Anheuser-Busch Releases Critical Statement of NFL's Handling of Ray Rice and Adrian Peterson.
 
 
Adrian Peterson Should Be Suspended Per Mark Dayton
Adrian Peterson Should Be Suspended Per Mark Dayton
Minnesota Vikings running back Adrian Peterson, the center of a child abuse controversy in Texas, should be suspended, per Minnesota governor Mark Dayton.
 
 
 
Eva Mendes and Ryan Gosling Welcome Baby Girl
Eva Mendes and Ryan Gosling Welcome Baby Girl
This went from rumored pregnancy to birth pretty quick. Eva Mendes and Ryan Gosling have a baby.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.