Samsung lost global market share in H1 2014, just as it had predicted

Samsung lost global market share in H1 2014, just as it had predicted
When Samsung released its financial report for the fiscal quarter that ended June 30, it predicted that its market share will be experiencing a decline. The giant's chief of financial affairs later confirmed that Samsung is prepping for some troubles in paradise. Today, the Korea-based company released its bi-annual business report, which reveals the market share damage that Samsung has experienced throughout the first half of the year.

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

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81 Comments

78. joey18

Posts: 698; Member since: Jul 20, 2010

Samy are more despert then apple people wants the war apple vs samy so when the war is over htc will come or Motorola will be top againg

70. cybertec69

Posts: 32; Member since: Aug 17, 2014

It is called smartphone saturation, it happens all the time with any given technology, most people still sport two to three year old smartphones, reason is they still do their basic jobs such as email, apps, navigation, social networking and browsing the web, and of course texting and phone calls, people are upgrading less and less. The reason these Chinese phone companies are selling more to up and coming developing countries like China and India "where cheap" is commonplace, as people earn significantly less in those countries than more developed countries.

63. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

They need a better plan. They need a better look, not just metal, they need a defining unique look. Touchwiz crap is not helping them either, they have to get rid of its ugliness and bloat. And stop releasing crapxynos chipset in 3rd world countries.

58. Tsepz_GP

Posts: 1227; Member since: Apr 12, 2012

Mobile ONLY brought $6.1million, lol, majority of Samsungs competitors wish their ENTIRE business brought in that much. The explanation here is easy, the Chinese are taking the low end and squeezing Samsung out there, while LG, Sony, Huawei and Xiaomi are also being extremely aggressive in the high end and mid end. Lol, at the guy saying people want bang for buck or iPhone, the Galaxy S5, Xperia Z2, LG G3 and so on are priced similarly to an iPhone in many countries. The level ignorance around here is astounding.

51. sunday

Posts: 39; Member since: Aug 15, 2014

The problem is not the quality of samsung phones but the rise of cheap phones from china. Sony, htc and motorola are good in making premium phones of highest quality but no profit show for it. Samsung even make more profit than all of them ombined together.

50. mrochester

Posts: 1052; Member since: Aug 17, 2014

Samsung's main problem is that they use Android as the OS for their phones, the same Android you can get from a myriad of other devices made by other manufacturers (i.e., there isn't sufficient differentiation between Samsung's offerings and the offerings from other manufacturers). Samsung really needs to do an Apple and start making their own proprietary OS and ecosystem. It would have the side advantage of making the smartphone market more innovative and competitive too.

55. BobbyDigital

Posts: 2127; Member since: May 29, 2014

Problem with that is NO ONE is going to buy it. They already have Tizen and look at how well that's doing. Delays at every step. There's literally no interest in it. WP was the new OS on the market. Look at how well that's doing(Not well at all). Same with FireFox. BB10 is also new(and the best new OS out today)and its still having trouble, mainly because of negative, biased press. I'm all for a new OS. The more, the merrier. But the problem is you have so many people stuck on either Android or CR@pple's iOS. People don't want to try new things.

74. mrochester

Posts: 1052; Member since: Aug 17, 2014

Samsung could just of easily made an OS and ecosystem that people wanted to buy; it can be done, just look at Apple. However, it looks quite apparent that Samsung were rather short sighted about picking Android (a decision I think a lot of manufacturers are beginning to regret now). I say, serves them right for not picking what was best for the consumer :).

76. meanestgenius

Posts: 23174; Member since: May 28, 2014

Are you saying that if Samsung would have gone with an OS of their creation that consumers would have chosen that over Android? HIGHLY unlikely. For one thing, developers are extremely hesitant to build apps for new OS's which would help foster an ecosystem. Even companies with wads of cash up the wazoo are finding it hard to get developers to develop for them. Just ask Microsoft, and NO, I'm not bashing Microsoft. I'm just making a point. I happen to like and use Microsoft products. Two: consumers are a fickle bunch. For the most part, consumers purchase what is popular and/or what their friends/relatives/colleagues have/purchase. Just ask my favorite OS manufacturer, BlackBerry. No matter how GREAT BB10 is, consumers, mainly in western, developed markets, are hesitant to take the plunge. Samsung trying to "sell" their own OS to consumers would be extremely difficult.

77. BobbyDigital

Posts: 2127; Member since: May 29, 2014

Either you really don't understand the mobile market, or you're just a zombified iF@nboy trolling. Samsung tried to garner interest in Tizen. And Bada before it. NO ONE bit. Samsung only became such a dominant player in mobile BECAUSE of Android. Samsung used Windows Mobile and Symbian in both their haydays to very little acclaim. iOS only became so popular because it came out as Windows Mobile, Symbian and BBOS were starting to wane and the public wanted something simplified. On a side note, give up the trolling kid. There are a few of us, myself included, that don't take kindly to trolls. I'd hate to have to shut you down. :-)

65. tedkord

Posts: 17544; Member since: Jun 17, 2009

But it's not the same Android. If it were, updates would be instantaneous. Samsung, HTC, LG modify the OS down to the framework - you can't use an AOSP kernel with TouchWiz or Sense rom, or Sense with TW.

41. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Sammy's designs and business strategy gave Chinese OEMs a chance to rise and eat up their share. Sammy is huge and that earnings ($6.11 billion) is still quite a lot for them. I hope chinese OEMs like Xiaomi keeps the prices low, so that other big OEMs should learn from them (Low prices with beautiful designs).

32. lolatfailphones

Posts: 224; Member since: Apr 08, 2013

LMAFO bring back Wendy he/she hella funny

24. tiara6918

Posts: 2263; Member since: Apr 26, 2012

Time to change your strategy. Your competitors have finally figured out how to counter you

64. tedkord

Posts: 17544; Member since: Jun 17, 2009

Samsung's problem is that they're not the only Android OEM who makes great device anymore. Moto, LG, Sony, HTC, etc... are also making great devices, in some cases better than Samsung's. And, there are third tier manufacturers putting out really good devices at really low prices, too. Two years ago, Samsung was the only game in town for an all around great Android phone. The competition had since stepped up they're game. Samsung needs to find a way to adapt, find their identity. Just making a really great device doesn't set you apart any more. On that note, what a great time it is to be a smartphone consumer, with all the awesome choices. Competition always benefits us.

12. DouchebagWendy

Posts: 15; Member since: Aug 14, 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

Posts: 5629; Member since: Mar 08, 2013

Your name. Yes, your name. Just look at your name, would you look at that.

29. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Lol well that was quick.

33. lolatfailphones

Posts: 224; Member since: Apr 08, 2013

You're a quick reporter Papa

34. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Are you playing dumb? Wendy was already permabanned so hop off you troll.

36. lolatfailphones

Posts: 224; Member since: Apr 08, 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..

43. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Congrats on making yourself look dumb. 223.69 million sold. Yup.

44. lolatfailphones

Posts: 224; Member since: Apr 08, 2013

I didn't look dumb. Everyone knows you're the sherif round these parts.

49. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Don't forget it.

79. amats69

Posts: 1527; Member since: Nov 12, 2012

you call some people here a troll..not to mention, you are the biggest troll here in PA.

35. KingDingaLing

Posts: 324; Member since: Oct 11, 2013

60. Ashoaib

Posts: 3309; Member since: Nov 15, 2013

thats not a bad idea... apple really did well by feeding if0ols with low specs for years and now they have plenty of room available to upgrade... which unfortunately is not available for samsung... just imagine if apple will put 3gb ram, 16mp cam, 2ghz quad core cpu, 1080p... how stunning and bigger this upgrade will be and everyone will be stunned and knock down to the ground... where as samsung is already having the lastest tech in their phones, what more latest they will put?

11. JakeLee

Posts: 1021; Member since: Nov 02, 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: 10457; Member since: May 14, 2012

223.69 million phones were sold. Just saying.

68. JakeLee

Posts: 1021; Member since: Nov 02, 2013

Most of them are junks.

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