Samsung is Following Nokias Footsteps

Nokia, what used to be a giant in the cell-manufacturing industry fell down, and was bought by Microsoft in April. Now it looks like Samsung starts to follow this similar trend. “Samsung’s net income of 6.18 trillion won, or $6 billion U.S. fell short of analyst expectations of 6.83 trillion won for the June quarter. According to Bloomberg, the income declined 18 percent, and shares of the South Korean company fell after the earnings were reported.” Samsung’s decline was due to competitions mainly. The other smartphone manufacturers using an Android platform are catching up to Samsung, such as the Xiaomi corp in China, providing similar functions as Samsung products at a lower cost. Samsung’s competitors are not only competition through low price and improved technology; Lenovo, LG, Huaiwei improved greatly in their distribution channels and sales strategy. Besides its rising competitors, Samsung is also affected by its main competitor- Apple. Although operating on a different platform, Apple is able to earn more market share with its newest model iPhone 6(+). Samsung only sold 30000 Note4 on its first day, while Apple received 4000000 preorders after releasing iPhone6(+) on the website. Samsung is declining, but I am curious about what would happen when Note4 is launched in North American market.

Leave a Reply

Your email address will not be published. Required fields are marked *