Samsung under pressure from low-priced Chinese manufacturers to keep smartphone crown

Samsung under pressure from low-priced Chinese manufacturers to keep smartphone crown
For the first time in four years, Samsung actually lost market share in the global smartphone market during the first quarter. From January through March, Samsung controlled 31.2% of the world-wide smartphone market, compared to 32.4% during the same time last year. Part of the reason for the decline in Sammy's market share had to do with tough competition from Chinese manufacturers selling lower priced Android models. With Samsung's market share high in the low growth areas of the developed markets, Shin says that the company needs to push hard in emerging markets like Africa.

Considering that profits from smartphones account for 70% of Samsung's operating profits, the pressure is on J.K. Shin, head of Samsung Mobile, to turn things around. Shin plans on focusing on wearables, and selling mobile devices to the enterprise, in an effort to get Samsung Mobile moving again. Shin argues that despite what the public is saying about the lack of innovation on the Samsung Galaxy S5, Sammy's new flagship model is the only water resistance handset with a removable back cover. Shin also pointed out that Samsung's power saving mode was made possible thanks to the company's OLED display, which does not require the use of an additional backlight.

Asked about how the new phone is doing in the U.S., the executive notes that the new flagship is outpacing last year's model. Shin did note the popularity of the Apple iPhone in the U.S., but says that Samsung's market share in the states is high and on the rise. He also might have given away a little information about the rumored flexible screen for the Samsung Galaxy Note 4. When asked how he sees smartphones evolving, he says that flexible screens are one way to innovate.

Another way to turn things around would be to give the public what it wants. With rumors that a "premium" Samsung Galaxy S5 Prime is on the way, with a 5.2 inch 1440 x 2560 QHD resolution screen, and an aluminum body, Samsung could be ready to recapture the market share it lost in the first quarter. While Shin didn't mention the Galaxy S5 Prime, he does see more health related metrics being measured by smartphones, beyond heart rate. One health related sensor that could be warmly received, would be one that could measure blood glucose readings for diabetics, without having to prick a finger for each reading. Samsung is holding an event on May 28th that is expected to reveal some new health-related sensors for Samsung devices.

source: WSJ

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17 Comments

1. sriuslywtf

Posts: 297; Member since: Jul 09, 2013

You say Samsung.. I say One plus One and Xiaomi..

3. Wiki_jaan

Posts: 704; Member since: Jun 24, 2012

samsung should drop touchwiz for low n mid ranger..... should go for stock android and with minimum bloatware

10. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Touchwiz is Ram and Cpu hungry

13. XaErO

Posts: 353; Member since: Sep 25, 2012

Yeah .. right .. i thought that this would change with new TouchWiz launched with S5 .. but it is still heavy (although lighter than any previous versions) .. I like TouchWiz user interface but Samsung really need to work on optimizing TouchWiz more from performance point of view ..

14. fireblade

Posts: 717; Member since: Dec 27, 2013

root the samsung install another launcher uninstall bloatware problem solved

2. wilsong17 unregistered

I have a note 3 and I will definitely will get the note 4 why cuz I can mdf

4. networkdood

Posts: 6330; Member since: Mar 31, 2010

I believe it - I spent 400.00 on my Coolpad 9976A - great 'Little' phone it is...

5. Peeyushmalik96

Posts: 75; Member since: Jun 08, 2013

One of the reasons low range phones are not selling well is that these phones are a pain to use. There are frequent lags, the phone often hangs...and this problem was mostly with the Android 4.0 ones...I know many of my friends who could not afford higher price range and ditched Samsung because of these problems....

6. gigaraga

Posts: 1454; Member since: Mar 29, 2013

Well if Samsung is feeling pressure imagine what other companies are thinking..they will have even less chance

7. gaara6775

Posts: 738; Member since: May 20, 2014

here in India, people prefer buying micromax (which has mtk soc) which has bigger screen and priced at far lesser price than shamesung. it's obvious ppl who can't afford even midrange phns they won't buy sammys low range because they get much choice in other local/Chinese brands at very low cost. if I were them ,I won't bother focusing on low range handset instead focus on mid-range n high range devices by changing their look n feel.

9. peace247 unregistered

Dude micromax is good but in terms of reliability it is nowhere near to Samsung.

16. Odiin

Posts: 373; Member since: Apr 23, 2013

Including India most of the Asian countrys always get that Exynos versions, Neo Note S everything., Its not going to change in future also. Prime Note4 whatever it may be, Other manufacturers are lot better in this regard.

8. techperson211

Posts: 1280; Member since: Feb 27, 2014

Still reliability will play a big part on this.

11. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Samsung Stop being selfish, let others make some money Your doing very good on your highend devices

12. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Where is Friendsofsamsung

15. gigantos

Posts: 63; Member since: Jul 25, 2013

S5 "is the only water resistance handset with a removable back cover"???? Was he drunk while saying that? How about Xperia ZR? Its waterproof level even goes to IP58.

17. RohanM

Posts: 141; Member since: Jan 15, 2013

&&&& I love my G2... ;)

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