comscore Samsung misses the biggest tectonic shift in smartphones after the iPhone
News

Samsung misses the biggest tectonic shift in smartphones after the iPhone

The introduction of the iPhone in 2007 was one of the biggest shifts in trends for the smartphone industry. Just look at where companies that chose to ignore the iPhone - Nokia, BlackBerry, Motorola,

samsung-jk-shin

The introduction of the iPhone in 2007 was one of the biggest shifts in trends for the smartphone industry. Just look at where companies that chose to ignore the iPhone – Nokia, BlackBerry, Motorola, among others – are today. Samsung, on the other hand, realized the threat that Apple and its iPhone brought and also saw it as a great opportunity to make its presence felt in the smartphone industry. However, seven years later, it seems Samsung has missed the next big shift in the smartphone space and is paying dearly for it. Also Read - Samsung Galaxy A02s allegedly spotted on Geekbench, key specifications tipped

Yesterday Samsung announced its quarterly profits fell nearly 25 percent – its worst performance in two years and the third consecutive quarter of profit decline. Also Read - Samsung Chairman Lee Kun-hee dies at 78

“Considering intensifying competition of price and specifications as well as the release of new competing models, it is difficult to expect earnings to improve from the second quarter,” Reuters quoted Senior Vice President Kim Hyun-joon saying about the mobile business during a conference call with analysts. Also Read - Samsung Galaxy F12 launching in India soon: Will it be another renamed Galaxy M device?

idc-q2-2104-smartphone-shipment-tracker

This one chart from IDC’s Q2, 2014 smartphone shipment tracker report rounds up Samsung’s current situation in the smartphone industry. Among the top five smartphone vendors, it was the only one whose shipment volume declined from the same period last year. Even Apple, which like Samsung lost some market share, showed growth in shipment volumes despite rumors of a bigger display iPhone in the offing, which typically makes people hold on to their purchase plans.

Moving away from Apple and Samsung, check out the growth posted by Huawei and Lenovo. Huawei’s shipment volumes almost doubled and Lenovo grew by over a third. Even “others”, which would include the likes of Xiaomi, Motorola and a slew of local Chinese and Indian smartphone brands, grew by almost 40 percent during the same period where Samsung’s shipments declined.

Samsung is missing out on a key trend – commoditization of smartphones. The next growth in the smartphone industry is coming from users who are migrating from feature phones to smartphones. These users are not looking for the latest cutting edge hardware in their next phone but are highly price conscious. And in the sub-$200 price segment, Samsung is struggling to compete with local and Chinese vendors.

Unlike Samsung, which has to bear high R&D and marketing costs, these players are using existing technology that doesn’t involve them spending any R&D dollars. They don’t have extravagant marketing budgets either, just doing enough to ensure their devices get visibility at points of sale. And they of course have an edge over Samsung when it comes to pricing. The situation reminds me of the time when Chinese and local Indian brands introduced feature phones with dual-SIM card slots and swept away Nokia’s feature phone market share.

Things are only likely to get tougher for Samsung in the entry-level smartphone space towards the end of the year. With $100 Android One smartphones coming sometime around the end of September, it is clear that Samsung would have a tough time selling its smartphones in that price range. Add the likes of Motorola and Xiaomi, and things look really bleak for Samsung at the moment.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: August 1, 2014 11:36 AM IST
  • Updated Date: August 1, 2014 11:37 AM IST



new arrivals in india

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

14,999

Oppo F17
Oppo F17

17,990

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers