Growth in Samsung's mobile business has been falling sharply

Growth in Samsung's mobile business has been falling sharply
According to data from Jackdaw research, the growth in Samsung's mobile business has been declining precipitously. Jackdaw's Jan Dawson says that if the decline in growth continues, Samsung will lose its title as THE Android manufacturer. As recently as the first quarter of 2012, Samsung was delivering year-over-year growth of 90% in its Mobile business unit. In the second quarter of this year, Samsung had a year-over-year decline.

Just yesterday, we told you how Xiaomi has replaced Samsung as the top selling smartphone manufacturer in China. And Lenovo is breathing down Sammy's back, with less than 224,000 units separating the pair. While cheaper value manufacturers are taking business away from Samsung in Asia, in developed countries, Samsung has a challenge in the flagship niche of the Android world.

The Samsung Galaxy S5 has plenty of competition this year from the HTC One (M8) and from the LG G3. Both of these phones offer something that Samsung has decided not to include in its flagship model. In the case of the HTC One (M8), it is the metal body. And the LG G3 offers a 1440 x 2560 QHD screen that was originally rumored to be part of the Galaxy S5, right up until the device was unveiled at MWC in February.

This year, Samsung has cooked up something new to challenge the Apple iPhone 6 with. Instead on relying on the Samsung Galaxy Note 4 to excite its fan base in the second half of the year, the metal-clad Samsung Galaxy Alpha is offering a phone designed to take on the new iteration of the iPhone, right down to a similarly sized-screen (4.8 inches vs 4.7 for the iPhone 6). Despite a resolution of 720 x 1280 on the Galaxy Alpha, Samsung has pumped up the specs to include a quad-core 2.5GHz Snapdragon 805 CPU under the hood, 3GB of RAM and a 16MP rear snapper.

This doesn't mean that Samsung is going to disappear. It just means that the company is facing challenges in the Android world from both low and high-end manufacturers.


source: BeyondDevices via BGR, MobileBurn

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45 Comments

1. Saioofi

Posts: 336; Member since: May 23, 2014

Galaxy S5 to blame

4. Dude2014

Posts: 448; Member since: Feb 12, 2014

Worst flagship smartphone ever by Samsung. I've tried Exynos powered S5 in store, its screen isn't that responsive and UI lags as ****. The only good thing I could find in this phone is its camera. Overall overrated phone.

5. galanoth

Posts: 428; Member since: Nov 26, 2011

Store models are always nonsense because they're always on and have everything running. I have the Exynos 5422 version of the Galaxy s 5 and it's pretty great. HMP makes the 5422 > all previous Exynos.

6. techperson211

Posts: 1280; Member since: Feb 27, 2014

Because it's not a Samsung and Apple world anymore. There's a lot of competition not to mention OEM like Htc Lg and the rebirth of Sony after separating to erricson.

8. galanoth

Posts: 428; Member since: Nov 26, 2011

I think in 5 years the market share leaders in Android phones will be all from Chinese manufacturers. Race to the bottom. There is a reason why Moto E and Moto G are some of Moto's best selling smartphones. What's more important most market share or most profit? I don't think you can have both being an Android phone maker.

21. skyline88

Posts: 697; Member since: Jul 15, 2013

try turning off the Power Saving Mode.

34. AlikMalix unregistered

skyline88's post is Clever and Funny...

40. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Yea, it's obvious you never touched a S5. And if you actually did, that would have been a faulty unit.

11. AnTuTu

Posts: 1595; Member since: Oct 14, 2012

Hoping that Note 4 will put Sammy back in the business only if they execute it nicely.

17. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Yeah, but an excellent phone with a $700-$800 pricetag won't cut it these days. it's not what it used to be An attractive price point is the key

12. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

Popularity to blame... Times change, and nothing good last forever.... Time for something new!

13. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

you have to include their crappy big.little BS in the equation too, along with the generic design that hasn't changed much since Galaxy S3, and of course their unacceptable pricing in the low-midrange segment which is laughable.

19. maherk

Posts: 6715; Member since: Feb 10, 2012

You must be blind if you truly believe that the design hasn't changed that much between the S3 and S5.

20. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

you are the one who's blind lol stop defending fanboy

22. marcski07

Posts: 600; Member since: Apr 25, 2014

what do you want to point out? their design at back? lol, we're talking about redesigning their product because from low end to their flagship they all look the same, and that makes the S series look generic and cheap, and also, s5 looks really cheap and too light as a toy. but it is my opinion tho about the weight, but the looks? many will agree...

42. i.cent90

Posts: 26; Member since: Jul 16, 2014

U ar freaking confused so u prefer heavy phones to light ones u dont realy belong to planet earth maybe mars Jupiter or somtin...s5 stil da bomb man

16. verbalize

Posts: 150; Member since: May 03, 2013

Lol... This happens when you flood a market with 1 million different versions of the same cheap phones.....95% of below par phones.. It cheapens the name of company and people think all the phones are glitchy, slow and ugly. If they were smart they would sell a quality low, medium, and a high version phones...That's it!

24. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

No, the decline starts between Q2 and Q3 of 2013. So, the Galaxy S4 is to blame.

29. naittosan

Posts: 239; Member since: Jun 28, 2014

No sh#@, then they come out with a weak Alpha to put up against the iPhone 6. It's all down hill if they don't get it together.

2. wilsong17 unregistered

Cheap sell phones are taking over why pay 800 dollars for a phone if a 300 dollar one does the same... I do own a note 3 will also be buying the note 4

3. maherk

Posts: 6715; Member since: Feb 10, 2012

Of course the growth will at some point start to decline when you reach the top of the mountain. There is a big difference between sharp decline in sales and sharp decline in growth, Apple reached that point as well 2-3 years ago.

7. wilsong17 unregistered

not only that by all other manufacture copy like features

9. dorianb

Posts: 617; Member since: Oct 24, 2012

Please.... Please.... Please.... Let HTC, Motorola, & LG make a comeback to where the playing field is equal.

10. HoPhonTab

Posts: 36; Member since: Jun 03, 2014

Samsung must lower the price of their low-mid range devices

14. imkyle

Posts: 1112; Member since: Nov 18, 2010

Since they release a new tablet every 4-5 months and their cell phones have the same design since 2011. Yeah I can see it.

15. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

With the onslaught of cheap China phones, this trend will continue unless Samsung does some drastic measures in their pricing strategy which of course, highly unlikely. their low end is crap their midrange is crap their high ends are so-so

18. Altair

Posts: 367; Member since: Feb 02, 2012

Its about time for Shamesung to go downhill. Too long they have been getting advantage for just copying shamelessly other OEM:s. I just don't understand, why people wants to buy a cheap plastic looking device and support a thief. Shame on you Shamesung!

23. marcski07

Posts: 600; Member since: Apr 25, 2014

they have good in marketing strategy, how to use the phone, and support also. so yeah. but other company learned from it also LG i bet is getting a chunk on the share because they followed or some other say "copy" the replaceable battery, definitely a big plus feature, and that was samsung was praised about back then...

43. i.cent90

Posts: 26; Member since: Jul 16, 2014

What do u knw abt phones n manufacturers, u ought to be washin cars or clothes in sum freaking hotel dan say nonsense can u mak a phone to be ball lik in shape al phones mst be rectangular in shape wether wit a curve by d side or not so whos coping who n people wnt to buy d cheap plastic cos it has all d offer not a metal phone wit 4mp or 4inches n yet no w.resitance 4k,better camera

26. xondk

Posts: 1904; Member since: Mar 25, 2014

if you ask me, this is just natural fluctuations in the market, apple and samsung are competing for first place while others are nibbling away at them, other products are becoming more popular nibbling away at the giants, especially in a sector where they share the OS such as android. Apple has its 'unique' IOS, so that may keep a bit free of that. But considering the insane amounts of sales that they have I do not think samsung or apple is in any real danger of falling down anytime soon, personally can't stand the lack of customization IOS has, and that's about it, to me other then design and customization android and ios, are doing what a mobile os is supposed to do. Personally I believe that mobile sales for apple aren't going to be as great as they want with the next iphone, because just like with android we are getting to a feature saturation point, More power and more res, isn't really needed at this point. Better battery, sure, that'd be nice. More features? what? it seems most to be connectivity which even an older phone now a days can connect to, so that's more a software issue.

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