Samsung lost global market share in H1 2014, just as it had predicted
According to this report, the global market share of the giant for the period dropped 1.9% year-over-year – from 26.8% in H1 2013 to 24.9% in H1 2014. For the first six months of this year alone, Sammy has retailed a total of 223.69 million mobile devices. The giant's handset business has, in fact, pulled down the total revenue of the company 19.5%, which means that it has brought “just” $6.11 billion home – way less than it's used to.
We have talked numerous times about the most probable and sound reasons for this decline. Just a few among them point out that the rise of some China-based competitors have successfully eaten the company's market presence in both the entry-level and mid-range departments, while the saturation of the high-end smartphone market and the Samsung Galaxy S5 have reportedly also contributed to the downward fall of the revenue.
Samsung is already rumored to be taking the necessary course of action and get itself out of the shifting sands. The Galaxy Note 4, which will be officially announced in a couple of weeks' time, is probably endowed with all of Samsung's hopes for a quick regain of its previous market share stats.
source: Yonhap News via Android Authority
1. lolatfailphones (Posts: 153; Member since: 08 Apr 2013)
Stop making so much crappy phones each year
5. Duketytz (Posts: 534; Member since: 28 Nov 2013)
Make less phones with more premium designs for the flagships. I don't really care if it's cheap for the lower-end but if it's for a flagship device, it better be darn stunning!
10. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)
For example, the good old Galaxy S2 and the Wave series.
22. techspace (Posts: 924; Member since: 03 Sep 2012)
You are saying that improving the design will make them more popular, i agree with you but making too many phones isn't stopping them from making better flagships.
48. sgodsell (Posts: 2369; Member since: 16 Mar 2013)
I think its a changing market still. With Motorola and other companies that brought mid to high end specs at low and affordable prices has changed the market forever. Look at the Moto G for example. You could get 3 Moto G's for the price of one iPhone. Not to mention it was water and dust resistant with a HD display. This trend is still continuing today with less expensive handsets that offer a great experience. This did so well for Motorola that they doubled their sales in the last quarter alone.
17. JakeLee (banned) (Posts: 1021; Member since: 02 Nov 2013)
The Galaxy Alpha with FHD and a higher cap battery should have been the GS5.
26. PapaSmurf (Posts: 9846; Member since: 14 May 2012)
I'll take a IP67 rated device over the Alpha any day thank you very much.
45. nebsif (Posts: 37; Member since: 27 Jul 2014)
with that flap? no tnx. look at sharp aquos phones, almost non existant bezels, water proofing and no flaps. Sammy went the cheapest (from them) way to waterproof the S5 which resulted in a swollen S4.
Hope they learned.. I want a sammy (amoled) device worth my money pls
47. PapaSmurf (Posts: 9846; Member since: 14 May 2012)
I like everything about the S5. If I could change one thing, I would have added an extra gig of RAM. I multitask like there's no tomorrow.
30. LetsBeHonest (Posts: 1150; Member since: 04 Jun 2013)
Releasing many phones okay but they should also update it to latest versions.
also a change in design language is also welcome . More premium looking phones will be nice . But premium doesn't mean metal body but polycarbonate like on htc one x and Lumias are also nice too.
and less bloating on low-mid range phones since many shows slight lag on Samsung devices. So they should keep the performance excellent even in low end devices by optimizing it software to hardware.
42. techspace (Posts: 924; Member since: 03 Sep 2012)
Yes, they should improve the design but I don't think they can do better by making low end phones with stock android because of 'android one' and the Chinese phones...so they are trying to differentiate themselves from the others with the features that are only available on their devices... they can't avoid bloatware.
71. naittosan (Posts: 234; Member since: 28 Jun 2014)
Well first I wouldn't of come out without that lame Alpha to go up against iPhone 6. It should of had a 5in high resolution, 805 proc, 3g of ram, and 32 g of expandable memory, to start with.
15. maherk (Posts: 2394; Member since: 10 Feb 2012)
Yet they managed to sell 223.69 crappy phones right? Stop playing the premium material card, the majority of the customers aren't brainwashed with all this media crap that aluminum is premium and anything else sucks. If it was this premium, you wouldn't find it used on a Pepsi can.
46. nebsif (Posts: 37; Member since: 27 Jul 2014)
its not about aluminium, sadly its not even about looking good, its all about not being an eye sore like the S5.
edit: btw it took so long to get rid of "fake" design, uhh I forgot the name.. like the old iOS design, leather textures etc, anyway till we got rid of that in software and every1 is embracing more mature, flat and modern design, sammy still insists on using fake leather and metal (that peeling "metal" band on all pre alpha phones).. It just screams cheap.
52. Ashoaib (Posts: 2881; Member since: 15 Nov 2013)
so many devices with the same design cues... what should samsung expect? design seems like stagnant... by looks almost all phones look the same which is infact kinda boring... if we talk about low end, then the people who are looking for cheaper phones can invest in more features with same amount of money which samsung offers with less specs... samsung really sucks at low end as compare to chinese counter parts... I had a chinese phone with 2gb ram, 1.3quad core cpu, 16gb of native storage, 3200mah battery(spare battery was included), 8mp camera(though the night shots sucks) 720p display and the price was $279... can samsung offer these specs in $300... why not the market share will decline?
66. cncrim (Posts: 639; Member since: 15 Aug 2011)
Most people probably forget that today market is not what use to be, smartphone was new and no one have one. However roll forward today smartphone have satuare the market, and keep in mind the average phone life in america is 1-3 years because we have a lucky of subdize plus cheaper price compare everywhere else around the world. Many other place around the globe phone average 2.5-4 years and take example place like africa and and india the smartphone life is 5-8 years before replace.......... you know the point and do the math.
The only way to get out of this mess is new innovation not new design or material.
69. fanboy1974 (Posts: 1322; Member since: 12 Nov 2011)
I don't think 20 phones down to 2 phones would make a difference. The market is starting to favor cheap Android phones that are just as capable as any $600 plus Samsung or Apple flagship. Just look at the recent reports of Samsung losing market share yet Android gaining.
I've been a Samsung owner for 3 years but I care more about Android. I could have a phone from Motorola or Google in the next few months so why lose sleep over one OEM?
75. verbalize (Posts: 107; Member since: 03 May 2013)
Samsung will not recover from this. 1st they have crappy phones from my own exsperiance. 2nd you start your own OS and not go to a free give away of a OS. Now you are competing against every cheap company including ((Chineese )who uses Android. Of course they are late to the party to be innovative to create there own OS. If it evers catch on they might have a slight chance to be in the top 3 phone manufacturers.
53. Ashoaib (Posts: 2881; Member since: 15 Nov 2013)
being innovative is not the problem for samsung... they have one of the biggest R&D budget in market... they have to work out the design... most of the people can see better than they can think... if the looks are not inspiring then laymen usually think that the phone will not be good... it is good that most of us on PA are well informed about the lastest tech and specs... we can argue or fight with each other over the specs n features of a particular phone which increase our knowledge but not everyone is a PA user... there is a huge general consumer base who doesnt go deep into the specs, their buying behavior depends on some other factors, this is the reason why iphone is so popular among those fokes who have money in their pocket but dont know anything about the inside components of the phone
57. mrochester (Posts: 326; Member since: 17 Aug 2014)
And even those of us who do know about the inside components of the phone chose to buy iPhones, simply because what's inside your phone is only part of the story (the OS and ecosystem being the more important part).
I think innovation is Samsung's problem; they never seem to make anything that takes the world by storm and changes the direction of the entire consumer smartphone market; certainly not in the way Apple do.
62. Ashoaib (Posts: 2881; Member since: 15 Nov 2013)
yes even those who have insight buy iphone but at the moment I am pointing out those people who buy just bcoz its iphone, and they have money to spend... huge number of ppl buy like this
73. mrochester (Posts: 326; Member since: 17 Aug 2014)
Well I don't think that group of people accounts for very many at all.
80. Ashoaib (Posts: 2881; Member since: 15 Nov 2013)
then in this case you are not aware about general users... I will say that your information is lacking alot... I am working in a sales business where I meet 25-50 people daily and sometime just for my knowledge I do inquire them why they are having the particular phone... most of iphones owners give those type of answers which validate my above comments... this is my praticle experience, not just an assumption... there are some people as well who really have good insight but I am not going to quote few as an example..
I am talking about those people who have money and own flagship phones and buy iphone bcoz its iphone, nothing more and believe me they are huge in numbers
81. mrochester (Posts: 326; Member since: 17 Aug 2014)
Your anecdotal evidence is essentially meaningless anyway by it's very nature. I don't think there are very many people at all who buy an iPhone just because it's an iPhone; iPhone's are a dime a dozen, there's absolutely nothing exclusive about buying or owning an iPhone, so the whole premise of buying one just because of what it is doesn't make sense.
4. darkkjedii (Posts: 15550; Member since: 05 Feb 2011)
Samsung will be just fine. That company's a juggernaut, they'll slide a bit just like Apple, then rebound with a few strategic changes. No biggie.
16. JakeLee (banned) (Posts: 1021; Member since: 02 Nov 2013)
True, only dozens of CxO will get fired, including the CEO.
31. Finalflash (Posts: 2167; Member since: 23 Jul 2013)
Never hurts to cull some of the dead weight. MS took 20 years to do that and they're suffering from it. Apple is currently stacked with dinosaurs and that is showing in their post Jobs products. Firing bloated CEOs is the best way to help a company expand into a new era.
37. tedkord (Posts: 7355; Member since: 17 Jun 2009)
It would be a refreshing change to see the bigwigs of a large company pay for their strategic blunders instead of the everyday Joe's. I don't expect to see it, though.
Heck, Stephen Elop got 25 million and another job for running Nokia intro the ground.
67. JakeLee (banned) (Posts: 1021; Member since: 02 Nov 2013)
That happens at Sammy all the day.
The average lifespan of Chiefs at Sammy is 18 months.
72. tedkord (Posts: 7355; Member since: 17 Jun 2009)
But they don't suffer. The typical CEO gets a golden parachute ensuring he will never need to work again. The typical worker get a couple of weeks severance. The CEO is always more responsible for a company's poor performance.
25. techspace (Posts: 924; Member since: 03 Sep 2012)
It's easier for apple because they have their own os, they don't have to deal with the inexpensive android phones with high end specs.
6. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)
Biggest problem for Samsung is the design and the pricing. Chinese manufacturers are rising because they're offering high end on a cheap price and low end with low price and good specs which is why I like these Chinese manufacturers, so this is expected for Samsung to fall a bit. Maybe the Note 4 will be a game changer if Samsung do it well this time.
18. maherk (Posts: 2394; Member since: 10 Feb 2012)
What pricing? The S5 is cheaper than the M8, Z2, G3, and the iPhone 5s. At least this is the case here in Lebanon.
19. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)
Countries are different from each other. In Malaysia, S5, Z2, G3 are almost the same in pricing which is expensive, and the most expensive ones are the M8 and iPhone 5s.
But what I meant by pricing is when compared with Chinese phones. Chinese phones are cheaper than the ones from the top dogs.
21. maherk (Posts: 2394; Member since: 10 Feb 2012)
Non of those OEMs will ever be able to match the Chinese pricing of that's what you're looking for. NEVER.
54. Ashoaib (Posts: 2881; Member since: 15 Nov 2013)
this is the case every where(I think)... GS5 is cheaper than m8, z2, 5s... this is the reason z2 n m8 doesnt sell in as same numbers of galaxies... well for iphone the case is different
7. fouadqr (Posts: 326; Member since: 21 Nov 2012)
Things never stay the same .. maybe someday another company will buy Samsung how knows ?
But I hate the fact that the cheap Chinese company are overtaking every single company down in terms of market share ..how come HTC ..SONY..NOKIA..soon LG can't even be in the top 5 ..where u can just see Sam ..Apple and Chinese company ..thats bs ..in real life u can't see Chinese smartphones anywhere expect CHINA ..
13. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)
I don't know which country do you live in, but in my country, I can see peoples starting to use Chinese phones.
Also, Huawei, Lenovo and Xiaomi aren't cheap Chinese companies, if they are, they won't be in the top 5. Why HTC, Sony, Nokia, LG aren't in the top 5? It's because of pricing and specs, and also limited release of mobile products on many countries which is LG. People these days want "bang for the buck" and "value for the money".
20. JakeLee (banned) (Posts: 1021; Member since: 02 Nov 2013)
Yeah, people these days want most bang for the buck.... or iPhone.
That's the difference between Apple and Samsung.
27. PapaSmurf (Posts: 9846; Member since: 14 May 2012)
Yet Samsung sold 223 million phones and you're in denial people aren't buying them. Go away you troll.
39. tedkord (Posts: 7355; Member since: 17 Jun 2009)
Apple hasn't had the most bang for the buck in smartphones since 2009 at the latest. That's why every year, their market share drops to the point they're getting close to single digit now - disproving your original statement that people want it these days.
59. Tsepz_GP (Posts: 909; Member since: 12 Apr 2012)
Ignore the troll, he's just looking for attention, no real point of him even being here if he doesn't like Samsung, so clearly he's looking for some sort of acceptance here.
61. tedkord (Posts: 7355; Member since: 17 Jun 2009)
That's true, but he's being reasonable so far in this thread. And we do have trolls on the Android side who plague Apple stories.
38. banglazbless (Posts: 55; Member since: 05 Feb 2014)
Buy Samsung? Are you on Crack? I would like to know, which other phone company otherthan Samsung and Apple is making a profit? Don't forget sir that Samsung is much much more than phones. Think first before making such idiotic comment.
56. Ashoaib (Posts: 2881; Member since: 15 Nov 2013)
@fouadqr... in real life you can see many chinese brands everywhere... I love the fact that chinese companies are taking over and I am having good options in lower prices... it is my pocket from where money comes out for any purchase and I dont mind the fact that I have good options with lesser price tag... htc, sony, nokia, apple, samsung and even chinese companies are not my brother's companies... nor I am the owner, so I love it whenever I see some new enterant is breaking in, in the market with lower price tag and higher specs
11. JakeLee (banned) (Posts: 1021; Member since: 02 Nov 2013)
Regaining the market share..... It won't happen. The momentum is gone.
From their top four divisions(mobile, TV, display, LSI) only mobile division suffered decline, and that alone pulled around 20% of the whole company.
Unlike Apple, it doesn't have to be Samsung - that's the difference.
28. PapaSmurf (Posts: 9846; Member since: 14 May 2012)
223.69 million phones were sold. Just saying.
12. DouchebagWendy (banned) (Posts: 15; Member since: 14 Aug 2014)
Samsung running out of ideas, throw royal flesh and 4 A's and now no card to throw, they should learn Apple how to reserve some, and keep 1gb ram for another 10 years :)
14. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)
Your name. Yes, your name. Just look at your name, would you look at that.
34. PapaSmurf (Posts: 9846; Member since: 14 May 2012)
Are you playing dumb? Wendy was already permabanned so hop off you troll.
36. lolatfailphones (Posts: 153; Member since: 08 Apr 2013)
Oh? You had nothing to do with this? This is surprising...carry on..um what were you blabbering about again? Oh yeah 223 million sold..