Tuesday, September 8, 2015

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Samsung Loses $44 billion in Market Share

Samsung is without a doubt the most popular Android maker. The famous company has revealed flagship Android devices for years and its success is undeniable.

However, it seems that the growth of numerous of the company's rivals and the release of numerous premium Android smartphones is putting a lot of pressure on Samsung, which has to take a stand in order to maintain its supremacy on the Android market.

Moreover, it seems that there is a market on which Samsung has not managed to gain the success it wanted: China. The Chinese market has been dominated by local mobile phone developers ZTE, Huawei and others.

Moreover, Apple has managed to gain an unexpected success in this country with the release of the iPhone 6 and iPhone 6 Plus.

Samsung Loses $44 billion
And now it looks like the company's chance of gaining that success is even lower. The Chinese economy is not looking particularly good and this means that companies such as Samsung could face some serious issues.

Smartphone makers have always been interested in China, as this is the biggest smartphone market in the world, with millions of customers.

These customers purchased smartphones in the last few years and now the market is filled. This means that growth for big companies might be over. Apple has not felt that, at least not yet.

Tim Cook, Apple's CEO, recently claimed that Apple's business is in continuous growth in China. Growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last 2 weeks," Apple's CEO revealed. 

Without a doubt, Apple expects sales to grow with the release of its upcoming generation iPhone, which is set to be revealed this month.

However, if Apple seems to still have a chance, things may not be looking that great for Samsung. The famous company's profit has decreased and Samsung has suffered $44 billion loss in market share since April.

Samsung's profits have declined because of the tougher competition and also because Apple released a product that addressed Samsung's segment of the market. The iPhone 6 brought a change in design and an increased screen size that customers liked. And this meant that they choose Apple's product, instead of the same-size Samsung device.

Moreover, Chinese smartphone manufacturers have continued to release improved, but much cheaper smartphones, which also affected Samsung's success. Consequently, the company's shipments to China have declined by 50% from the fourth quarter of 2013 to 2014.

This has happened while Apple's shipments have doubled. What will Samsung do next to keep its business successful is yet to find out.

The famous company has already made some management changes, as in December 2014, it fired a series of executives from its mobile division.

If that helped the company is yet unclear. Some analysts seem to believe that in a couple of years Chinese Android smartphones will be dominant on the market and Samsung will no longer be the most popular Android maker.


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