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Despite a slight slowdown in the overall growth of the market for smartphones, Samsung announced unusually weak quarter. Major role has serious competition observed in the budget price range, but the expectations for a large iPhone. According to Lee Seung-woo, technology analyst at IBK Securities, quoted by Reuters – “Samsung needs to rethink its strategy for the smartphone market.” Although this particular segment brought record profits for Samsung last year, the market has reached a mature stage. According to IDC market growth will be around 19.3% this year. For comparison – in 2013 the percentage was 39.2. Expected a decline in the average price of the devices.

Some analysts say Samsung should reduce the prices of its mid-low-end smartphones to combat competition in this range Huawie and Lenovo, complemented by Reuters. This will help the market share, but will reduce revenue. From Samsung expect better third quarter, as will be released new models will be invested less money for marketing, and expected performance of Galaxy Note 4. Lee Do-hoon, an analyst at CIMB, believes that Samsung assumptions may not prove accurate. According to him, “Samsung said to strengthen its position in the mid-low end phones, but this has not yet happened.”

The official information from the Korean manufacturer said that the company has become and witnessed slowing overall growth of the overall smartphone market, and increased competition from China and some European markets. It’s led to greater availability of smartphones average and lower class. The second quarter is seasonally weak period for demand for smartphones in China. Samsung has increased its stocks and therefore price competition and weak demand for 3G products before the expected growth of the 4G LTE products in the Chinese market. Weaker demand in the second quarter led to an increase in inventories in Europe, where Samsung has about 40% market share.

Samsung announced that operating income for the April-June (7.12 billion dollars) have fallen by 24.5% compared to the same period the previous year.

https://i0.wp.com/szlifestyle.com/sz/wp-content/uploads/2014/02/samsung_galaxy_s5_ap.jpg?fit=700%2C525https://i0.wp.com/szlifestyle.com/sz/wp-content/uploads/2014/02/samsung_galaxy_s5_ap.jpg?resize=150%2C150Richard D.TECH NEWSSamsungDespite a slight slowdown in the overall growth of the market for smartphones, Samsung announced unusually weak quarter. Major role has serious competition observed in the budget price range, but the expectations for a large iPhone. According to Lee Seung-woo, technology analyst at IBK Securities, quoted by Reuters -...