Recently, information has been released concluding that Samsung Electronic’s operating profit hit record high in the July to September quarter. The company stated that their operating income rose over 25% toward 9.4 billion US, which was better than their expected 9.3 billion US.
There are several factors contributing towards Samsung reaching a record-high profit but I am convinced that this increase was most likely the result of Samsung focusing on more of a diverse product line especially the low- and mid-end phones. With this goal, they were able to expand further into international markets offering phones that are very affordable in developing countries. I’m positive most of us are aware that Samsung specializes in producing unique products for different types of markets. They offer customers a variety of products and creates new device categories that their competitors have not yet established. This point of difference gives them a tremendous advantage over their competitors such as Apple or HTC where they mainly focus on releasing similar products but with improved specifications. As evidence of Samsung’s diverse market, they recently released Samsung Galaxy S4 mini, S3 mini, Note 3 and Mega. The Samsung Galaxy S4 and S3 mini targets customers who wants a cheaper smaller version of it predecessor while the Samsung Galaxy Note 3 and Mega targets customers interested in a combined “tablet phone”. Ultimately, finishing the third quarter with a record-high profit is only the beginning of a positive future for Samsung. It will be interesting to see how their competitors will respond in the coming years.
A video introducing the “Samsung Family”
Works Cited:
http://tvnz.co.nz/business-news/samsung-reports-record-high-profit-5609486
http://www.cbc.ca/news/business/samsung-profits-up-a-record-25-in-3rd-quarter-1.1912361